51% appreciation in 1 year - Posted by Rolfe Kurtyka

Posted by Rolfe Kurtyka on March 08, 2001 at 21:17:43:


How are things in Beer Town? I’m originally from Appleton, and went to school at Madison (go Badgers). Answers to your questions;

  1. No, I do not believe my tenants have been any different from others. Within my market, I consider my units premium properties. All were solid renovations and have been well cared for. However, I’ve only been at this since 1998. I’m sure I’ll see my share of problems, but the profit margins, especially this market’s appreciation, make that risk worthwhile.

  2. I believe several factors have lead to our remarkable appreciation. We’ve experienced a lot of immigration, and immigrants will buy housing which they can afford. This has created a demand in the inner city. In addition, a substantial non-profit redevelopment effort has had some effect. A strong economy no doubt was a major factor. Finally, the rental market here is tight, with vacancies in some sectors below 1%. This drives up rents, which makes rentals more valuable. Duplexes do not last long on the market.

  3. The MLS, for the most part, is the dominion of realtors. The historic report about appreciation may be available to the public, but in any event no worries; any realtor can pull up a history of “solds” for any area. Fact is, the MLS report about appreciation was old news to investors. We know our market better than most. I’m a broker, and have MLS access at my home office.

  4. Mow and snow is the responsibility of the tenants. This has been a snowy year, and the shoveling sucess rate was no better than fair. Same with mowing. In the spring, the grass can get long. I have no problem taking care of the grass or shoveling once in awhile. It’s a great break from my usual world, gets me outside, and the tenants and neighbors are more likely to be aware of my presence, which is a good thing.

Again, the core neighborhoods of Minneapolis have scene greater appreciation than any other local area. The high number of rental properties in the area makes (made) those properties easier to buy. The risk seems to have paid off. I’ve refinanced properties, pulling out cash to buy others. I deal exclusively in renovations, and only put my own money down once - $10,000 on my first property.

Good Luck, Joel. Rolfe

51% appreciation in 1 year - Posted by Rolfe Kurtyka

Posted by Rolfe Kurtyka on March 05, 2001 at 23:47:18:

It’s a great time to own some houses in Minneapolis.

The only thing rising faster than property values in Minneapolis are the rents! Interest rates going down, vacancies at 1.5%, double digit rent increases, and values up. To me, that says refinance, get some cash (courtesy of the tenants), and buy some more.


Sunday newspaper article regarding a recent report by the Regional Multiple Listing Service, showing that inner city areas showed remarkable growth in value last year. Percentage increases in the median home prices were reported at 51% in a neighborhood long considered the “worst” in Minneapolis. Other inner city neighborhoods increased 34%, 25%. The average increase for all of Minneapolis equaled over 22%.

Wah Hey, Rolfe

Re: But then again, - Posted by Eric C

Posted by Eric C on March 08, 2001 at 11:40:58:

Hi -

You might also want to check out an article that appeared in the same paper on May 31, 1997.

key words to search for is “real estate appreciation”.


Eric C

Re: 51% appreciation in 1 year - Posted by Joel David

Posted by Joel David on March 08, 2001 at 11:10:21:

Rolfe -

I am down here in Milwaukee so we are not too far away. Anyhow, as you have rental properties in “Questionable” neighborhoods, let me ask you a few questions.

  1. Do you have problems or should I say more problems than average with tenants not paying rent or making the place look shabby?
  2. What would you say lead to the increase property values? Are people buying up the cheaper properties and then fixing them up?
  3. Do you have any idea if the average investor can call up the MLS and get information on appreciation %'s for specific neighborhoods or do you have to be a realtor to access this information?
  4. I imagine you have someone onsite mow the lawn and shovel the snow (nothing like getting 3 feet in December!) do you have problems with the tenants taking care of this?

Thanks in advance. I feel that these properties do offer the easiest way to get into real estate, even though they may or maynot appreciate as quick. Right now I would like to be getting as much cash flow as possible so I can put in a little cushion in case the roof needs to be redone or someother big ticket item. Do you own properties in suburban neighborhoods as well?

Ok enough questions out of me. Thanks again and take care - stay warm as well, its almost spring !!