All Forum Posts by: Adam Kozuch

Hey Milwaukee BP,

I'm wonder if anyone has recommendations for loan officers or lending institutions they have worked with in the Milwaukee area?

My first deal I did FHA and went through US Bank as the rate would have been the same regardless of where I looked. Now I am in the process of analyzing and funding my second deal (a duplex with minor rehab) and want to start talking to local institutions, I'm just looking for a starting point.

Thanks!

@Michelle L. my parents use a property manager in Eau Claire. PM me your contact info and I'll see if they could refer anyone to you.

Just realized this was an old post. If you are still looking let me know.

@William S. What tools/methods have you been using to look at local properties?

Hey Wisconsin BP,

When going to see a property what Cap Ex items do you typically look at or ask about? I know the big hitters like roof, driveway, siding, heating systems, water systems. Are there any others that you like to ask about when looking at a property?

@Brandyn Dietman Thanks!

Looks like this property has been around the block (so to speak). I will still go take a look and see if there is any more to be learned from a walk through. Sounds like it might be a bit more than I am ready/willing to take on at the moment.

@Brandyn Dietman I would assume you have looked at this property already? When did you last see it? I was going to check the property out after the holidays so I did not know that yet.

@Account Closed I have not seen the property yet but according to Brandyn it sounds like repairs are needed so that would definitely factor into the offer I would put down (if the property is still worth the hassle). 

All four units are currently rented. My brother would contribute to the 'rent' still even as an owner/occupant. I included PM in the figures just so that if down the road I didn't want to manage this myself I still knew what the numbers looked like.

Hey BP,

I currently own one 4 unit multifamily in Bay View and am looking to purchase another building with my brother. Short term he and his fiance plan to owner occupy with the long term strategy being buy and hold. I have been running analysis on many properties and I think I found one where the numbers are slightly better than the rest and am looking for a sanity check! 

The property is located in South Milwaukee, Southeast of the airport. All feedback/input is appreciated.

Purchase Details

--------------------

Purchase Price = 150,000

Closing Costs = 4,500

Renovations = ? Haven't had the property inspected yet.

Down Payment ($) = 30,000

Down Payment (%) = 20

Interest Rate (%) = 5

Years = 30

Income (Monthly / Yearly)

------------------------------

Units = 4

Rent = 2,430 / 29,160

After Vacancy = $2,235.60 / $26,827.20

Expenses (Monthly / Yearly)

------------------------------

Property Tax = 466 / 5,592

Management Fee (11%) = 220 / 2,640

Insurance Estimate = 200 / 2,400

Repair Estimate (5%) = 121.5 / 1,458

Vacancy Estimate (8%) = 192 / 2,332

Cap Ex (10%) = 243 / 2916

Results

----------

Cash Required = 30,000

Loan Required = 120,000

Monthly

----------

Income = 2,430

Expenses = 1,442

Financing = 555.74

Net Income = 432.26

Yearly

----------

Income = 29,160

Expenses = 17,304

Financing = 6,668.88

Net Income = 5,188

Capitalization = 7.9%

COCR = 17.29%

@Brie Schmidt To clarify, no Ace or Family Dollar in Milwaukee accepts it? I was able to find Family Dollar locations all over the greater Milwaukee area. 

Welcome @Nate Leaders, there is a monthly meetup of Milwaukee BP members the last Saturday of every month hosted by Nicole Pettis. Might be worth checking out!

Welcome @Brandyn Dietman, there is a monthly BP meetup on the last Saturday of each month hosted by Nicole Pettis. Might be worth stopping by if you want to meet some of the locals you will probably be seeing on the site.