Buy & Hold Investor · Milwaukee, WI · Member since 2012 · 378 posts · 179 votes
10y
I agree that the SOWs can be conservative but ignore the cosmetics.
I would add that if you plan to use the Rental Rehab Program's forgivable loans to fund the rehab, that program has separate and higher standards such as lead abatement which quickly eat up the funds.
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
10y
In my opinion, the City SOW lists figures for repair/replace items TOO HIGH based on what I can get the work done for. However, on the flip side, they are also estimating the minimum amount to get the house livable. So when you look at a property, you may want to replace the flooring because it's from the 1960s, but if it's livable, they wouldn't put it in their SOW. So you have to keep that in mind.
Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
10y
The city's SOW are very conservative and I have finded that you can get post of the work done for about half the price. This depends on the level of rehab and varies from investor to investor.
Buy & Hold Investor · Milwaukee, WI · Member since 2012 · 378 posts · 179 votes
10y
I agree that the SOWs can be conservative but ignore the cosmetics.
I would add that if you plan to use the Rental Rehab Program's forgivable loans to fund the rehab, that program has separate and higher standards such as lead abatement which quickly eat up the funds.
Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
10y
@Nick L. great point about the Rental Rehab Program. You are usually replacing things that need to get fixed and not repair them, when talking city money.
So when buying from the city of milwaukee does the whole amount of the sow h Ave to be in your bank account or is there a way around it.
If you have a 401(k) statement that has that total you can use that. I have done that and purchased a City of Milwaukee property then used other funds. Basically, they just want to make sure you can afford to buy AND rehab the property, and not just buy something cheap that will sit and be a blight on the neighborhood.