All Forum Posts by: Brandyn Dietman

Quick question for you guys.. I have a tenant in Milwaukee, Wi that just let me know through a text that she will be late on her $450 rent payment for August. She hasn't been late since I took it over (4 months ago), but I have had to key her into the late fee of $50 to get her to pay on time the first month.She does teaching stuff, so it's presumable that she'll be on time next month when school starts.  My question is, in her text she said she will have 1/2 of the rent the 1st, then "should" have the second half with the late fee two weeks later, so she gets she'll be paying extra.

I don't want to be soft and encourage this type of habit to form, but I don't want to be a jerk and evict her right off the bat either, especially if she warned me a week in advance.

Would you serve a 5 day notice on the 6th when the grace period ends? I'd obviously like to be covered in case she decides not to pay, or doesn't have the money two weeks later, but I'd also like to give her the chance to pay since she's been in the unit for 3 years.

What would you do??

Thanks!

Brandyn

I used Nick Janasik with Coldwell Banker for my 3 unit. He was recommended to me because he also does multi family management and property investing! He did an awesome job and I plan on using him again!

I attended it after getting an accepted offer on my house in West Allis, and the information they presented and 'textbook' they send you home with is definitely worth it! Plus the price is right..

Hey everyone! I have been in a gruelingly slow negotiation process (7 months) with two sisters in a 3 unit comprising of 2 apartments and a commercial unit (bar). We finally both agreed to the terms of the commercial offer to purchase, and land contract terms, and they said they'd take it to a lawyer to have it written up. I just received the paperwork and 85% looks great like we talked about, but there are a few parts that are not what we agreed to. They cut the term from 5 to 2 years, and made a full tear off/replacement of the roof a requirement within the first 60 days... I'm a land contract newbie and was looking to see if anyone else has had similar problems when working with a land contract/personally with a seller? Thanks! Brandyn Milwaukee, Wisconsin

Nick Janasik is a great realtor, house flipper, and manages multi families already! Plus he does repairs as well which can really be a money saver!

I just closed on my first deal in West Allis, just west of Milwaukee, Wisconsin!! I wasn't looking in West Allis or for the 3 unit (I was hoping for a 4 unit in a trendier part of town), but the house ended up being in the best shape, and had the best numbers!! The house brings in $2100 ($900 2b/$650 2b/$450 studio) a month in rent, and cash flows $700 a month after mortgage/taxes/insurance! I want to say thank you to all the people here who helped me get to this point after a year of looking and am already looking for the next deal!! I look forward to getting advice from everyone on how to progress forward, and how long to wait before the next deal! -Brandyn

Thank you both for the information!

Hey y'all! I just had an interesting question from a tenant in a studio apartment.. Single mom with her son who stays every now and again, no big deal they're both on the lease. However, she just came and said her friend needs a place to stay for the summer. And she wanted to ask if it's ok if she stays (she already told her yes and is in the unit for the last day) Her lease states she can have a guest for 2 weeks. I'm planning on making an amendment to her lease with her "guest" on it stating liability and an increase of $30 per month to cover the utilities I cover for another adult. However, she's Ina. Studio apartment.. Is there a Wisconsin statute or Milwaukee county statue that states how many people are allowed per square fm foot? I remember there being a number but I can't find it for the life of me. Thanks!

Devon- I don't know why I can't message from the app on my phone, but shoot me a message. I was in the same boat you are about 4 months ago. I tried a realtor who I thought would be very investor friendly, and ended up moving to another realtor at a different company. I didn't feel like I was getting heir 100% and was being brushed off. So shoot me a message and I'd love to give you some names and chat! My current realtor is Nick Janasik with Coldwell Banker. He flips homes on the side, manages properties multifamily properties, and was on top of the listings as they came out to get us in them as fast as possible. He didn't just set me up a "listing portal" but he spent the time to go through them with me, showed me neighborhoods I didn't think I was going to look in, was extremely patient with me as a noobie, and when it came time to write and offer, really went to bat for me in negotiation!

I need some help from my friends!!

I found two great properties in Milwaukee, WI, where I live, and am putting in an offer on one today(hopefully)! They are next to total opposites, apples and oranges, and I need help if you could lend an opinion! I will be living in one of the units at either property, both are in safe neighborhoods with the same quality of school district, and will not receive more rent if I put remodeling into them. I used the same 6% vacancy,10% CAPEX, 10% Mgt, and 8% repair figures as both owners declined to provide actual numbers.. I do have a regular full time job, so this will be my part time side job.

Property #1

Price: $135,000 asking price about $1700 in rent.

Expected Purchase Price: $125,000

Financing: 5% Conventional (due to state of the garage and peeling paint)

Monthly expenses: $1742

Cash Flow at asking price:-$42

Pros:

Duplex/1 bedroom cottage = Privacy in own unit

On Double lot so lots of room

Good Tenants (1-15 years other two are 2 years)

Next to work (5 minute drive)

Blue collar, B class neighborhood

Lots of parking

Cons:

Garage needs to be torn down

Back cottage needs a new roof soonish (has 3 layers on it now, next 2-3 years will need a roof)

Might be hard to re-rent if I get vacancy

Not a whole lot to do in area

Property #2

Price: $279,000 asking price about $2550 in rent.

Expected Price: $255,000

Financing: VA 0% down!

Monthly expenses: $2696

Cash Flow at asking price:-$146

Pros:

Mostly remolded

Great rents

Looks well taken care of

Not bad commute to work (13 minutes)

Very sought after neighborhood

Fenced in back yard

Cons:

Pretty small units

Frequent turnover in tenants

Minimal off street parking

Older house (1875ish)

I do like both properties, and I do have Property Mgt built into both even though I'll be doing it myself. I did it just in case I get deployed, I am expecting the expense.  My big worry is that this is my first property, and I don't want to max out my available financing right off the bat, or, is it worth it for the property?  My main plan is to live in one of the units until I have enough capital to move onto the next property, hopefully in the next 2 years. All opinions welcome!