by Michael Simms
I”'ve always believed that having beauty in one”'s life was an essential element for my own happiness. When we started rehabbing properties in Minneapolis, we had many discussions with various contractors whose mindset was “Just do what”'s absolutely necessary” to rent, and we”'ve insisted on going the extra mile to make our buildings more liveable and to try and instill some pride in the people who live there. We ultimately believe it will extend the life of the property and,”¦ it”'s also the right thing to do.
Whether it”'s restoring a magnificent porch, or keeping or restoring hard wood floors that have been covered up by cheap carpet, or keeping beautiful built-in buffets and wainscoting that dramatically add beauty to a property, we”'ve always insisted on going the extra mile to attract renters who want a sense of beauty in their living accommodations. Of course, we also make sure that they are even more structurally sound than originally. We do new electric, furnaces, plumbing, leveling of floors, and whatever else it takes to meet our standards.
2704 has beautiful built-in woodwork and oak, hard wood floors we just discovered that we”'re bringing back to their original beauty. We put crown molding in other properties, have utilized exposed brickwork to help beautify another property, and in general, are always looking for a way to make a building stand out.
Last year we spent over $500,000.00 into the local economy, kept 7 full time employees working over the winter, paid over $19,000.00 in property taxes, over $16,000.00 in utilities, $10,000.00 in insurance, and brought 3 buildings that had been derelicts and eyesores in their respective communities back to life with the same pride of ownership you see displayed at 2704 16th Ave.
Our small company, Tahoe Holdings, which is basically my wife and I, in partnership and conjunction with Safehaven Development, are committed to this market, and are developing rental properties of which the entire community can be proud. The effect on a neighborhood that revitalizing an abandoned property has, is catastrophic in a good way. It makes everyone”'s property look better, which has a direct impact on their property values as well. If all the abandoned properties in Minneapolis were done this way, the market would rebound over night.
Our original plan was and still is to create beautiful, money making investment properties for resale. We actually price them at a 12% Cap return, so that an investor is guaranteed a beautiful, brand new, fully leased and professionally managed building, that is guaranteed to cash flow at an incredible return. Who couldn”'t use an extra $4,000.00 a month? The fact that we also make the properties as attractive and sound as possible is just an added bonus.
We love the Twin Cities. This is a vital, beautiful place in the heartland of America. We”'re aware there are many investors that are doing what we are, but we like to think we”'re helping the communities we”'re in as well as ourselves.
