All Forum Posts by: Cody Barrett

Wow @Adam Kozuch that is awesome, 70 people would be an excellent networking opportunity.  Definitely will be attending a meeting or 2 to see how it works for me.  My goal would be to find some partners or mentors.  It is about an hour north of me so I will definitely check it out. 

I rehabbed the hardwood floors, kitchen, bathroom, fixtures, outlets, and fresh paint on walls/windows.  The hardwood floors were the most expensive...  Got the price down from 2700 to 1100 with multiple bids.  My family also did more work with the guy so he gave me a little extra off.. Floors are a huge seller so I am happy I did it.  

I did stay on track and budget but it was a result of careful planning, not rehabbing too much, and pricing everything out before doing it.  Rehabbing for the first time was extremely frustrating as I made many mistakes, simple rookie mistakes that ate up time.... I also created an emergency budget so that I could sleep at night if something major hit me.... I dipped into the emergency budget for holding costs but everything else was pretty spot on.  I learned that it could be very easy to fall off budget with a surprise behind a wall though or whatever the nasty surprise might be.... SO I got lucky! lol... 

My biggest take away was not over doing it on rentals unless the area calls for it and that hiring a professional can alleviate stress, increase efficiency, and leave you feeling that it was done right. 

Hey BP!

I enjoy learning about how to value and make offers on apartment buildings and I am trying to implement some new things I've read about.

I drove past an awesome looking apartment building on the Northside of Racine. Its 28 units. Family owned building operating under a LLC and they have multi-unit properties in Milwaukee, Waukesha, Jefferson, and Racine. The building is not for sale but I thought I'd try to slap some pro forma data together for fun to test drive some stuff I learned. Who knows, maybe give the owner a ring sometime.. (that would be a 1st for me, ha)

Anyway... 

The tax assessment reads $106,600 for Land and $1,293,400 for Improvements with a total assessment at $1.4 million and the taxes are paid up with a recent payment of 43k.. The building only has 1 unit available for rent right now (1bed1bath 750 sq ft for $750/month)..

2 questions: 

Would the next step be calling commercial brokers to learn what the CapRate would be for similar buildings that have recently sold in that area?

I am guessing to get more information to estimate a true value based on NOI I would have to call the owners. But how influential is the tax assessment of 1.4million in determining the value of the building? Their actual yearly income/expenses is critical to obtain but I don't think owners just give that stuff out.

Thanks everyone! Definitely a lot of fun trying to solve the puzzle!  

mysmartmove.com has worked pretty well for me.  Powered by TransUnion 

I think if there is a will there is a way. We all know 1 thing, there is absolutely a market for situations like this. Public education totally skips over financial literacy. What you are wanting can absolutely come true though. It just might require the perfect mix of people to contribute their professional expertise on the subject. Obviously careful planning, analysis, clear policies and procedures, and a dedicated team can make your dream a reality.  Your business can be very profitable and in the eyes of others, be charitable too. Maybe a CPA or real estate lawyer knows some awesome ways to structure something this. 

I love a person's passion because the motivation and possible successes that stems from it can really accomplish something special in the world we live in.  The podcast on ethical land lording and how Mr. Williamson goes about investing can really provide some helpful tips!! 

Good luck!!! 

Oh nice! Awesome advice and great heads up on the appraiser.  Thank you so much!!

All this is great experience at the very least because right now you are starting to see what to look for, the importance of knowing what you're buying and how much one can expect to profit, and how to go about getting a property under contract.  I think if you knew exactly what that home would sell for in the area after you got your hands on it would help navigate you to an offer price. Repairs, holding costs, marketing, having buyers lined up, and the like are things to consider.  Check out the search bar at the top to really drill down question topics in regards to your situation too.  Good luck!  

@Jeff S. this is really great! Thanks for that post. 

Basements offer options when it comes to rentals.  From storage to finishing it for an extra room to rent! I actually have been surprised to find homes without basements when it comes to WI homes.  But yes, go for the basement if you can! Maybe some hate them because they're creepy but oh well lol. 

@Account Closed sounds like you got something in the works! I am new when it comes to finding lenders. Did conventional for my 1st duplex so now I am just following this to see how this works on BP.  Good luck!!

Wow this is incredible! What an example when they say "do it right".  So professional too.  Amazing work and organization.