Growing Portfolio Dreams

[Kira Voden]

Hello Everyone, I'm a novice investor wanting to grow my portfolio in the Milwaukee area. I currently own one duplex in Bay View (I occupy one unit and rent the other). Does anyone have any advice on how to use my current property to finance my next? Or really any advice at all would be greatly appreciated. 

[Erickson Sainval]

Read up on HELOC see if you have the ability.

If you have lived into he property for a year or more you can look at getting a primary home using FHA or finding a lender that does 5% conventional.

You can ask your circle of family and friends, create a nice pitch deck of what you did with this duplex, and pitch your idea to them so they can give you capital to do it again.

If you have other assets such as stock you can look at taking a loan against, or liquidating them.

Just a few ideas to get you going. Do your due diligence, and work the numbers.

[Marcus Auerbach]

@Kira Voden you can buy a duplex with owner occupied financing every 12 months. FHA is an option, but does not work so well with our 100 year old housing stock and sellers know that. We have a lender who does 5% down no PMI for OO buyers with good credit.

For a 300k duplex (which would be the average between West Allis and Wauwatosa, but more than you need for Milwaukee) you need $15,000 down payment, $18,000 with closing costs and inspection. So the question becomes how can you save $1,500 per month? 

If your W2 does not pay enough, start a side hustle, flip couches, learn how to run Google Ads for small businesses or paint rooms for old ladies...

Once you have your second duplex that should get easier, because now you are definitely living rent free. With 3 duplexes you should see some positive cash flow, which makes buying the 4th one easier. Once you have 4 they should generate enough down payment every 12 months for the 5th without you having to side hustle. That's the point when your houses start having babies ;-)

[Eliott Elias]

If you have equity you can cash out refi or pull out a HELOC.

[Kira Voden]

Quote from @Erickson Sainval:

Read up on HELOC see if you have the ability.

If you have lived into he property for a year or more you can look at getting a primary home using FHA or finding a lender that does 5% conventional.

You can ask your circle of family and friends, create a nice pitch deck of what you did with this duplex, and pitch your idea to them so they can give you capital to do it again.

If you have other assets such as stock you can look at taking a loan against, or liquidating them.

Just a few ideas to get you going. Do your due diligence, and work the numbers.

 Thank you so much for the thoughtful response! Some great ideas, can't wait to get going. Really nice to have this platform as a resource!

[Kira Voden]

Quote from @Marcus Auerbach:

@Kira Voden you can buy a duplex with owner occupied financing every 12 months. FHA is an option, but does not work so well with our 100 year old housing stock and sellers know that. We have a lender who does 5% down no PMI for OO buyers with good credit.

For a 300k duplex (which would be the average between West Allis and Wauwatosa, but more than you need for Milwaukee) you need $15,000 down payment, $18,000 with closing costs and inspection. So the question becomes how can you save $1,500 per month? 

If your W2 does not pay enough, start a side hustle, flip couches, learn how to run Google Ads for small businesses or paint rooms for old ladies...

Once you have your second duplex that should get easier, because now you are definitely living rent free. With 3 duplexes you should see some positive cash flow, which makes buying the 4th one easier. Once you have 4 they should generate enough down payment every 12 months for the 5th without you having to side hustle. That's the point when your houses start having babies ;-)

Any chance you'd be willing to connect me with your lender? I would love to hear what they have to say. I recently reached out to a SCORE mentor and he advised that I have a group of professionals to work with consistently(accountant, lawyer, realtor, lender) that know my end goal. 

[Marcus Auerbach]

Quote from @Kira Voden:

Quote from @Marcus Auerbach:

@Kira Voden you can buy a duplex with owner occupied financing every 12 months. FHA is an option, but does not work so well with our 100 year old housing stock and sellers know that. We have a lender who does 5% down no PMI for OO buyers with good credit.

For a 300k duplex (which would be the average between West Allis and Wauwatosa, but more than you need for Milwaukee) you need $15,000 down payment, $18,000 with closing costs and inspection. So the question becomes how can you save $1,500 per month? 

If your W2 does not pay enough, start a side hustle, flip couches, learn how to run Google Ads for small businesses or paint rooms for old ladies...

Once you have your second duplex that should get easier, because now you are definitely living rent free. With 3 duplexes you should see some positive cash flow, which makes buying the 4th one easier. Once you have 4 they should generate enough down payment every 12 months for the 5th without you having to side hustle. That's the point when your houses start having babies ;-)

Any chance you'd be willing to connect me with your lender? I would love to hear what they have to say. I recently reached out to a SCORE mentor and he advised that I have a group of professionals to work with consistently(accountant, lawyer, realtor, lender) that know my end goal. 

Of course, just email me, contact info on my profile page. Also, more info about house hacking or the Milwaukee real Estate market in general on YouTube!

[Brock Mogensen]

Cash out refi or heloc..if it makes sense.

Otherwise, if funds are limited. You can house hack the next property. Maybe aim for a 4 unit