All Forum Posts by: Alexander Witt

Update - 

The tenant and I agreed to the Early Termination, set for October 31st at midnight. We also agreed to a buyout. This result benefits the both of us. 

Thank you to those who chimed in. I really appreciate it.

Alex

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $230,000
Cash invested: $57,500

This was/is my first rental property. 2bed / 1bath upper/lower located in the Washington Heights neighborhood of Milwaukee, WI. Closing date of September 18th, 2020.

What made you interested in investing in this type of deal?

The passive income, and chasing the dream of owning and managing multiple properties at some point in my life.

How did you find this deal and how did you negotiate it?

I spent a good 18 months looking at multi family properties in the area I was set on purchasing/owning. Summer/Fall of 2019 I went through a good 10-12 multi family properties and didn't pull the trigger on any of them. I then took a break. Summer of 2020, the property I now own was one of the only that I had seen hit the market that summer

How did you finance this deal?

25% down. The rest through a local bank.

What was the outcome?

The first 14 months were owner occupied. The lower was rented out 5 weeks after closing. The upper I lived in until this April 2022 when I moved out to live with my now Fiancé. Both units are occupied and doing great.

Lessons learned? Challenges?

Most of the challenges so far have been repairs, which I wouldn't consider challenges. The furnace, ac, and water heaters were all replaced at the same time thus fail at the same time. Both furnaces replaced January 2021 after one crapped out. Both water heaters replaced June 2022, again after one crapped out. Luckily for me, I had and have been vigilant in saving money for these situations.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did. Jason Schiller of Bank Five Nine, and Bridget Scholtka Taylor of Coldwell Banker Home

I had come to the premature decision to offer the tenant an early termination fee of three (3) months rent plus the surrender of his security deposit. 

Now, upon doing some reading I am not sure if that is a appropriate (legal) proposition of me, to ask him to surrender his security deposit as apart of his early termination fee. Or is it?  @Sergey A. Petrov @Mo Maktari

Hi all! I am a amateur landlord who is looking for opinions on what others would do and have done in this situation. For context, I purchased a duplex in 09/2020. Lower tenants have occupied since 11/2020 and upper tenantt has occupied since 04/2022, signing a one year lease agreement. 

The upper tenant told me today 09/20/2022 he has accepted a job out of state and will only need to occupy the upper through 10/2022. He was inquiring on whether he is able to end the lease, sub lease, and or pay a portion of the remaining lease.

Off the bat I would say ending the lease cut and dry is not an option. Neither is sublease. That leaves me with him buying himself out of the remaining lease, or paying monthly until end of term (04/2023). 

What would you recommend?

Thanks in advance,

Alex.

Hello all.

First a little bit about me. I am a 29yo Landlord. Purchased my first Duplex in September 2020 and owner-occupy. Upon close of that property, it was vacant. I took the opportunity to "stage 0" both the upper and lower. New paint, ceiling fans swapped for light fixtures, and TLC to the bathroom; especially the rental..plus much much more. I am so happy I put in the work that I did.

Shopping for tenants went fairly well. My aunt (former landlord of 20 years) helped quite a bit with the logistics. My tenants that I have are great and I plan to offer a renewal when the time comes (December 2021). Besides the little expenses and even big expenses (both furnaces replaced January 2021) I have no complaints.

A goal of mine and something that I have said many times was that I want to buy a second property within a year.

Now this is where I am looking for advice. Who here recommends or has any experience taking out a HELOC for use as a down payment on a second investment property (duplex)? I've read that this could be option and while ultimately it is up to my lender, I am looking for opinions from the community.

Thank you.