All Forum Posts by: Daniel M.

I thought I would update this situation.  The upstairs tenant broke his lease in August '17 and abandoned the property, doing more damage on the way out.  He left a lot of junk behind which I had removed for $500.  The place was infested with bugs, which I treated for several months.  It is now bug free.  The downstairs tenant billed me for work that was never done, so I had to get another contractor.  I found a great contractor but he is not cheap by any means.  This property is over 100 years old and needs lots of work.  I've been working on the upper unit for awhile as funds permit and am close to being done.  The contractor wants to fix everything and so far that's what has happened - again these old houses need tons of work and finding the right person or crew to do the work is absolutely critical.  I've work doe on the roof - patching and removing scuttle hatch.  Work in the attic - took down 4 paster/lathe walls installed improperly in the attic, installed new windows, and removed massive amounts of old insulation.  Rented a dumpster and put 2.7 tons of materials in it.  Have redone the bathroom/kitchen and replaced/repaired/installed new outlets in the upper unit.  Converted gas dryer to electric.  Painted the entire unit.  Took down kitchen ceiling and one wall and replaced.  Replaced kitchen flooring and pantry flooring including sub flooring.  Cleaned out cold air returns and installed new dry wall.  Will install new kitchen cabinets today and gas oven.  This process takes a lot of time, energy, work, and money.  Do not buy a 100 year old house in Milwaukee and expect it to be maintenance free.  Have a very good idea what needs to be fixed and how much it will cost to fix it and who will do the work before you buy.  There will definitely be significant costs involved depending on what you want the property to be like when you're done.  Good luck!  

Thank you @Ryan Pattee, I am very curious to see what will happen with this area.  There's a big difference right now as you know between where you're at and where I'm at.  I've had a lot of issues with the property, which was not maintained very well - new outlets, storm windows, replacement windows, leaky pipes, bad electrical switches, replacement flooring, roof issues, garage issues, insect issues, tree issues - learning a lot, spending a lot.  Hope the area justifies the investment!  Regards.  dm

@Bob E. I did close on the property and will email you photos of the property this week - hope you had a productive trip over there 

@Shawn Ackerman  thank you Shawn, you're a good person and a valuable resource

Lured by BP podcasts and the writings of various BP members who shall remain nameless I have made the trip to Milwaukee in search of real estate - I have found one duplex near W. Vliet and N. 38th St. - I am set to close on 6/30 and intend to make the purchase - the asking price is around $25k and the current rent is $600/unit - this is a small pocket of mainly multifamily properties located close to but away from "war zones" to the north and east, as far as I can tell. I would strongly suggest to anyone looking at Milwaukee to come to the city and drive the streets - it is pretty clear where the bad areas are. Zip codes are not enough. The area where I intend to purchase has been called a C+ area and maybe a bit better - I'm not sure. The key to this deal and why I may end up regretting it is that it needs work and one of the tenants seems to be a great handyman type who enjoys the work [free rent]. If I can count on him to pull off the repairs, this should be a good deal. If not, I may be stuck. This area is completely different from where I am living currently and I would say extreme caution is needed - probably more caution than I am using. Good to luck to all. Feedback or questions about this deal, Milwaukee, duplexes in Milwaukee, more than welcome - would love to hear about potential duplex deals or SFR deals in Milwaukee or maybe other Wisconsin cities like Madison, Green Bay. Also will be looking again in KCMO when the dust settles on this one.

Hi @Reen Wade @Hervic Almonte and @Kristina Bynum   I'm looking at a few small SFRs in Macon and would love to hear any thoughts you have about the area, crime in the area, whether an investment in a C or D class neighborhood there makes sense, who to use as a property manager, etc.  I'm concerned about the crime stats over there and potential problems placing quality tenants and consistently collecting rents.  Population trends and price trends also seem to be declining there.  There are quite a few inexpensive properties up for sale at the moment that look like they could be great or terrible investments depending on local conditions. 

Thank you.

Hi there, I am also looking in Florida - right now the Florida panhandle - to buy a SFR for $30k all in - rehabbed and ready to rent for $600 - $800 - feel free to connect if you have any opportunities that fit into the criteria ... I see Jacksonville might also be a good city for investment but don't know anything about that right now .. objective is to buy 1, see how it goes, and do it again ... and again

@Rick G. Looking in Indianapolis, before that Toledo and KC, and would prefer properties further south - SC could be good.  Have family in NC, on the east side, near the Outer Banks.  

Hi @Rick G. No, I have not.  I met with Sharon Tzib, who is a great realtor, but did not find any 'deals.'  I am now looking out of state, generally for SFRs, generally with a turnkey provider, but have not closed on anything.  When I see a good source on BP, I follow that person.  Learning a lot, good luck!!

Hi @Rachel Pervis thanks for the information. I have been looking on har.com for condos at $30k and below, just to start out, and they seem to rent for over $700/month. Assuming the investor keeps 50% of that, that is a good cap rate of $4,200 / $30k = approx. 14%. 'Wild cards' being replacement of A/C unit(s), HOA special assessments, etc. There seem to be more of these condos available than duplexes/fourplexes - which is unfortunate because those types of properties do not require HOA payments and you are not at the mercy of the HOA - I would prefer a duplex/fourplex but availability seems scarce as compared to condos ............ Best Regards. DM