Long Term Rental Property
Hello all, My partner and I graduated from Milwaukee School of Engineering in 2023, and now we’re looking to purchase a rental property in Milwaukee. We played hockey while studying at MSOE, so we have a great relationship with the school and coaching staff. We’re looking to acquire a 4+ bedroom home within 2 miles of the campus; we’ve found a few good options. The problem is we have little money to start, so we’re looking to use creative financing to help purchase the property. I like the idea of private lending or seller financing. Once we get started, it’s a guaranteed fully rented home as we’ve already started a business plan with the hockey team. I’d love to connect with anyone who’s willing to offer advice! Thanks!
Most Popular Reply
Some comments and tips. Private lenders will want a good down payment, and if not your interest rate is going to be so high deal will not make sense. Creative or seller financing is a good way but... here is where the heartburn comes.
1. Buying real estate with little money is a recipe for disaster. lets say you buy a property and the hvac goes out and its $15k to replace - where is that $ coming from? Now you have no heat and in milwaukee in the winter - you think that "guaranteed" full rented home will be full, which leads to point $2:
2. Nothing is ever guaranteed, especially fully rented homes. what if a tenant is a drug addict and others do not like them, what if neighbors ahve dogs that bark all night, what if as I mention something breaks, pipe bursts etc.
Never look at things with best case scenario look at what is more likely to happen.
- Chris Seveney
