All Forum Posts by: Danny Stern

I am purchasing my first house, and had an accepted offer on a property. offered 260k and appraisal came back at 263k. now the owners said originally the house was not in a flood zone anymore. turns out they lied and that its been put back into the floodzone  and has been there since 2009. they have been paying 2,000 a year for floodzone insurance since that date. I'm very worried about low resale value down the road since right now its an extremely hot market. they said they would take money off the purchase price. my issue is I'm going to need a lot of money off my purchase to make it worth the risk. what do you guys recommend in this situation? I'm thinking 220k and call it a day. or maybe I need to go even lower? this house is probably a 5-10 year house for me so resale is important.   

thanks to everyone who took the time to reply, I appreciate it. I have decided I'm going to invest in a better area. I would like to find some some rentals in west allis. Really good to hear opinions from all of you. 

 I would say C areas long term. im most interested in cashflow, but I would prefer no warzones. I just finished school with a steady job so right now I don't care too much about the hassles. But long term I wouldn't want war zone properties.

talked to a family friend about a potential duplex purchase from them.  its 3bdr 1 bath each rented at 600 each. fully occupied currently $1200. he wants 45K for the property. I would not want to go more than 40k.  he rehabbed it about 2 years ago.  I would put 25% down.  I know this is a bad area in Milwaukee and this would be my first investment. after everything using the 50% rule I would be around $400 a month cash flow. I want to know basically more about what people think about the area. its located right by a police station.