All Forum Posts by: Dave Wilson

Investment Info:

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

Purchase price: $137,000

Cash invested: $6,850

This was the first duplex I bought and house hacked.

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

Honestly I since this was my first rental and I was also going to be living in it, I was somewhat emotional about the deal and didn't really dive into the financials as much as I should have.

How did you finance this deal?

Financed this deal with a residential 30yr note with 5% down

Investor from up the road in Oshkosh. Would love to meet up and chat.

I've done a handful of deals that local banks or credit unions would finance four properties on one commercial loan as long as everything appraises out and cash flows.

Thanks for the insight. After giving it some consideration and thinking through an exit strategy years down the road, I decided buying these would be the easy part, but unloading them years down the road would take a decent amount of work. 

Until I get a little more experience for larger unit multi-plexes under my belt, I think I'll pass on these.

@Logan Rankin I'd love to meet up and talk about what you're seeing in the local market, who you're using as a PM, and how you're able to grow that quickly.

I too decided to take the jump in head first approach three years ago and haven't looked back since. 

While browsing properties for sale on Loopnet, I came across a few 8-16 unit buildings in the Milwaukee area that all the units are currently leased out to local non-profits. While the some-what guaranteed rent check every month does seem to have its appeals along with the 11-12% CAP based off the numbers I ran, I am curious what the down sides to buildings like this are?

I am in the middle of purchasing four properties right down the road in Princeton. 

I know an awesome realtor in the area if you need a referral. 

That is a good point. Maybe I'm over-thinking things that the average buyer would look at. I know if I was purchasing a property that had a FMV well above the tax assessed value, it would certainly raise an eye brow.

Over the weekend I got an accepted offer on four properties (three MF, ones SF) for ~50% of the tax assessed value. Since they are 45-60 minutes away, I don't have a desire to hang on to them long term like the other's I own in my local area. Thinking through my exit strategy for the properties, I'm not sure what the pros or cons are to having the property taxes adjusted in the short term and how it would affect the evaluation when I go to sell in 1-2 years.

My thought is to turn around in a year and sell two of the properties back to the current tenants who've expressed interest in buying them, and hold on two the other two and bundle them back up and sell after two years. The concern though is if I'm able to get the property taxes lowered to reflect the sales price, it's going to really hurt the price I'm going to be able to sell them out down the road.

Any thoughts?