I wanted to write this regarding the recent discussions and proposals surrounding rent control in Minneapolis. As an Mpls landlord, I believe it is crucial to share our thoughts and concerns about the potential negative effects of implementing strict rent control measures within the city.

First, let me acknowledge the importance of ensuring fair and affordable housing for all residents. We understand the need to address the rising cost of living and the challenges faced by renters in our community. However, it is vital to consider the potential drawbacks and unintended consequences of rent control policies before making any hasty decisions. 

One of the primary concerns I have with rent control is the negative impact it can have on the supply and…

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Investing in real estate can take many forms, ranging from active involvement in the purchase and management of properties to passive investments in real estate ventures managed by others. Each approach has its own unique advantages and disadvantages, so it's important to understand the differences before deciding which strategy is right for you.

Active Investing:

Active real estate investing involves taking a hands-on approach to finding, purchasing, and managing properties. This can include buying a home, duplex, triplex, or quad and becoming a landlord, or purchasing commercial properties to rent out to businesses.

One of the primary advantages of active investing is that it provides a high level of control over the investment. As the owner…

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Public Service Announcement: Bonus Depreciation is Going Away!

Did you know that one of the most incredible tax benefits of owning real estate is going away at the end of this year? That’s right, at the end of 2022 you can say goodbye to 100% bonus depreciation. Well, it’s not completely going away, but it will be phasing out over the coming years. Here’s how that looks:

2023 = 80%
2024 = 60%
2025 = 40%
2026 = 20%
2027 = 0%

So, for those who aren’t complete tax nerds, what exactly is Bonus Depreciation? Bonus Depreciation only came into existence in 2017 with the Tax Cuts and Jobs Act’s (TCJA), and truthfully, it’s been pretty awesome for the past 5 years.

Depreciation is just the IRS’s way of recognizing that things wear out over time and thus…

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BET ON THE JOCKEY, NOT THE HORSE: Five Traits to Look for in an Operator & Important Questions to Ask

How do you find the right team to help you reach your investment goals? Here are five things to keep in mind and questions to ask to help determine if your operator is the right fit for you.

Personality
Are they smart and hardworking? Do they have integrity? Take the time to find the right personality fit, and never rush into a deal or partnership.

Track Record
Don’t just look at how previous deals performed. Look at how they performed relative to the original business plan. Did the operator project a 20% IRR but only deliver 17%? That’s not a terrible return, but it’s suspicious when compared with the original objective.

Team
Apartment…

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