All Forum Posts by: Dennis Elverman

@Account Closed, Thanks for the post!  I only have a second to reply now, but I had to say wow about the house on Oklahoma, hard to find duplexes that low in that neighborhood.  It will probably be gone soon if it isn't gone already.  

@Patrick M., I have been picking up all different kinds of college educated professional tenants over the 5 years I have owned the house.  This includes a teacher, an admin at the Medical College, an insurance underwriter, an HR manager, and a commercial interior designer.  I simply frame and market my rental as a great option for professionals that work in Tosa or downtown, take care of the property, and treat my tenants well.  I find that most of the Heights is safe and a good investment, but have a preference for west of Hawley/55th, and south of Lloyd.  Hi-Mount is pretty nice too, and honestly the only area I would avoid is probably 47th Street or North Ave.

@Richard Gaskins and @Brett Kash, Thanks for the tip on Kops Park and Nash Park!  

@Corbin Jones, I have a 3.5% FHA on my duplex, but can show probably 30-35% equity in that now, and a conventional non-FHA loan for my personal single-family home. You can find plenty of banks willing to give you a conventional loan for 5% down, but you will probably have to pay PMI. My wife and I lucked out with a program through a national bank that gives people of certain professions low down-payment loans without PMI (I'm a lawyer/professor, the wife is a PhD Neuropsychologist that works in the medical field). That being said, while it all worked out, I will never get a loan from a national bank again. I was a foreclosure attorney and saw how screwed up things were at the national banks in the wake of the great recession, and things haven't improved.

@Rebecca Knox, Thank you for all of your insight!  I am D.J. Elverman on the Brew City Facebook page, and you have been a great help on all platforms!  Pattee was actually the one pimping out Clarke Square and Silver City to me, but I guess based on your insight that might not be the best metaphor to use.  I am thinking West Allis might be the best place to check out next now that I live on the southwest-side and intend to self-manage.

@Marcus Auerbach, Thank you for your insight as well.  I agree that certain neighborhoods will always be "up and coming."  That being said, some areas of Walker's Point, Brewer's Hill, and the Fifth Ward seem like they are poised to make major strides.  I like Washington Heights as well, but I am biased.  My goal was originally to use the leapfrog technique, but last year with one kid here and one on the way we said screw it and moved into the home we see ourselves staying in for a while.  This may slow down my investment strategy, but hopefully we can get things rolling with another deal soon.

Thank you all for your responses, I thought this thread was dead, and I appreciate you bringing it back to life!

@Nik Moushon

I guess I am referring broadly to the need to take out a conventional or commercial loan for a non-owner occupied investment property that would require a 25% down payment.  I currently own two houses, my duplex and my single-family home where I live, and bought those with 3.5% and 5% down respectively, and the best I have been able to find thus far for the next purchase is 25%.  I haven't dug too deep into financing options yet, and if you know of options otherwise, I'm all ears.

Hello all!  I currently own a duplex in Washington Heights and am saving up for my next investment.  As of right now, I am probably a year or two away from having the cash to pick up another Washington Heights duplex (approx. $200k purchase price, $50k down for a commercial loan).  I am getting antsy, and can probably pick up something under $100k this summer, so I am expanding my horizons.

What are some other neighborhoods that people are investing in? I have looked at Washington Park, Martin Drive, and Uptown west of Loomis a bit, but I want to expand my horizons. Anyone investing in Clarke Square? Silver City? I heard at a recent REI event that Clarke Square and Silver City are up and coming neighborhoods, but I'd like to hear from people buying in these neighborhoods before I take the leap.

What about West Allis?  I know that it is a solid city, but I can't personally distinguish what neighborhoods are good and bad.  If anyone has any insight, I'd love to hear it!

@Pete Woelfel, I am curious what areas you find that are better cash flow nearby that also don't have high crime?  I have been saving up for another Washington Height Duplex, but am getting too antsy to wait, and am considering some nearby neighborhoods.  

Thanks for the update.  I have a duplex just east of you on 57th and Vine, so these numbers are helpful for me and the Washington Heights area as well.  My units are dated, but clean and well kept, and I get $1,050 and $950 respectively, so if I invest a bit in fixing up my kitchens and some other minor things I think I can get closer to what you are getting as well.  Thanks for sharing!

Congrats, I know many people (including my wife) in the medical field in town.  Where will you be completing your fellowship?  My wife did her fellowship at MCW, we lived in our duplex in the Washington Heights neighborhood at that time, and it was a great location that was right in the middle of work and downtown.  I cannot sing the praises of Washington Heights more, and even though we have moved out of the neighborhood into the burbs to get us both closer to work, more room for our kids, etc., I am saving up for my next duplex in that area.  Good luck, and let me know if I can be of any further assistance, however the names chiming in here already are great resources to start with as well.

Also, you are correct that there are lots of people that are casual, and they may have their reasons. A long term tenant that pays $800 a month for 5 years may be worth not having to turn the place over every year with $900 a month tenants.

It all depends on the quality of the space, and these 90 year old duplexes vary wildly in quality. I have a 2 bed 1 bath, 91 year old duplex on 57th and Washington Blvd right outside of Tosa, and I get $950. I got to this number through a few years of slowly upping rents, fixing things and putting up new paint, and seeing what people were willing to pay for the space. This is not an updated unit, but it is very well cared for, has nice landscaping, the original character of the house shines through with things like a huge wall hung sink, built ins, stained glass, and I include all appliances. It just shows better than the old duplexes that aren't as well maintained, that make tenants buy washers/fridges, and that are owned by people that are lazy with their marketing. Long story short, look closely at the ads and see what amenities are included and try to extrapolate a price from there. Also, see how people frame their ads. A basic ad with dark pictures won't get much interest, but a thorough ad with good pictures that frames the location well (east Tosa, near Froedtert/downtown) will get better prospects. I care that my tenants are happy, and my ads reflect that, so I then get better tenants to choose from. Shooting from the hip on price, I'd say a $900-1,200 range sounds right unless it has been thoroughly and modernly updated. Hope that helps!

@Darren Budahn Based on my house and my neighbor's, both of which were purchased and updated with primarily cosmetic updates recently, I would say 160-180k is very fair.  This house needs a lot more than just cosmetic repairs.  If someone does an extensive rehab like a similar duplex down the block, and is able to make the third floor a legal part of the second floor unit, it could be upwards of $250k (http://www.zillow.com/homedetails/17401742-N-57TH-St-Milwaukee-WI-53208/40460856_zpid/).