Hey everyone I have been interested in some tax forclosure homes in the milwaukee area. There are two properties that im looking into both as owner-occupant for my first deal.
Knowing that i will need financing for either, Id prefer the 203k/fha route as I dont have huge cash reserves at the mohment. I also plan to take advantage of a forgivable loan program the city of milwaukee has that helps pay for rehab/ aquisition costs up to 50% of 40k. My goal with my first property is to have the tentants pay my mortgage and utilities for not only there side but to cash flow enough to pay for most of mine too. That will allow me to save money to start buying other properties or flips that come up. any Thanks for your time reading this as I hope to hear from you.
Do you know anything about the area these properties are in?
Yes I was informed by a different bigger pockets member about the neighborhoods they are in.
Those are more challenging neighborhoods for sure. We wouldn't pay more than 15k-18k for a duplex in this area and it has to be rental ready or a tenant in place already. 12k-13k for SFRs.
To be honest, in my opinion, the numbers really don't make sense on this deal with the SOW numbers the city is presenting.
I have to agree. Maybe look for something west 30+ blocks. You'll pay more, but the neighborhood will be safer. Maybe drive the neighborhoods these are located in so you can get a feel for them. The areas vary greatly, sometimes block by block.
On the loan side, you have to pay out the money first, then the city pays you. They also put a mortgage/deed restriction on the property for that amount. The forgiveness period is 5 years... You can (maybe) sell to another owner occupant but I don't know what happens to the deed restriction at that point.
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