All Forum Posts by: Darren Budahn

I have a guy who does my snow removal on a 4 unit. I pay $100 per month and he takes care of it whenever it snows. No need to make an appointment. He just shows up and does it. Otherwise he charges $45 per trip.

I would steer clear of buying in a bad area and thinking you will just be able to transfer the headache of managing these kinds of tenants and properties on to a property manager. If you want to make a go of it in those areas plan on doing it yourself and know what you are getting into. I would just use the BRRR method and add value to each property you purchase. Otherwise, as you stated, you will soon be low on cash if you just keep plunking down 20-25% down payments on each property.

I would first try to come up with a value for the house. I can't imagine a 1 bedroom in Cudahy being worth more than the 73k she paid for it 15 years ago. It may be difficult to come up with comps as well on a 1 bedroom. Just run the numbers through an amortization calculator to see what your monthly payments would look like. 

Looks like John Anderson broke his own record for most useless post of all time. Seriously your computer should be taken away.

A commercial lender should do this for you no problem.

@Michael Braatz

The interest rate and 5 year term with a pre-payment penalty are definitely in the range from what i have seen in the commercial lending sphere in the Milwaukee area.  I have not seen any  lenders who require less than 20% down though.  

So they offer 10% down financing for all non-owner occupied properties?  

@Dominic Augustine

I'm no expert on FHA loans so i would talk to your lender or reach out to others here on BP.

However, my understanding is that you can only have on FHA loan at a time and it can be on any 1-4 unit owner occupied property. I do not think it matters if it's your first or tenth home purchase. For instance, you could buy a 4 unit with an FHA loan and live in it. Then, a few years down the road, assuming you had enough equity, you could refinance that FHA loan into a conventional loan and go buy another 1-4 unit property with another FHA loan. Hopefully that makes sense.

I'd say it is more difficult to find renters in the winter in Milwaukee but it's certainly not impossible by any means

Will you even be able to get an FHA loan if you convert it to 6 units? I know FHA is for 1-4 units owner occupied. I'm not sure about your situation but I would ask your lender

Another recommendation for Jason Bott