All Forum Posts by: Sam Erickson

First off I want to say that I do not own these properties.  I'm a realtor looking for a buyer on this off market deal in Greenfield WI, near Milwaukee.

This deal is made up of 4 duplexes next to each other.  Below is an overview of the investment. For more specific information or questions please ask, or message me.

Property Highlights:

-100% occupied

-Passive Investment, Tenants responsible for all utilities plus lawn care and snow removal

- Large units ~$1600 SF

- Attached garages (one car garage per unit)

-Located in family-friendly neighborhood with good mix of owner occupied & rentals

-2015 NOI of $75,107 (from seller)

Total Units: 8

Unit Mix: 3bed/2.5 bath: 8 units

Lease Rates: $1,200-$1,300

Year Built: 1991

*I'm looking to represent you as a buyer.  The deal was passed to me by the agent with the pocket listing.  Will sign a buyer agency agreement, so you know my fiduciary responsibility is to you and not the seller.  The listing number that was given to me is $890,000.

At the sellers asking price, COC looks to be around 12.5% and Cap rate of 8%. Have a rental calculator sheet and will forward if interested.

Thanks,

Sam

keywords: Wisconsin, Milwaukee, Chicago, Greenfield, Off Market, Duplex, Muti

Welcome @Aleksandrs Vilumsons .  Good luck with your plan!  I'm a fan of the suburbs surrounding MKE as well.

Welcome @Jason Roman, Always great to get more MKE people on here!

Welcome @Thomas Connolly , If you have to be laid up at least you have the Podcast to dive into.  Great stuff on there!

Section 8 pros is that the majority if not all of the rent comes from the city and is direct deposited every month.  A con can be that if you accept Section 8 you open yourself up to city inspections and they can withhold your rent if they flag something and you don't get it fixed.  As long as you keep your properties in good repair you shouldn't have a problem though.

Hi @Josh Nicolson I'm up here in Milwaukee.  Would love to meet with your when your up this way.  I'm a broker as well as a rehabber, I also have a very small portfolio of rentals.  Would love to talk purchase and I also have a handful of subs that I use up this way I'm willing to share.

I'll send you a PM.

Go to you local BP meet up if there is one, and the local REIA. I'm sure there will be plenty of cash buyers. Also you don't need a huge list. If you can present a good deal, someone will pick it up.

"Points" are percentage of the loan.  For example if  the loan is for $100,000 and a lender is charging you "2 points", what they are charing you is 2% of the loan, or $2,000.

Your more traditional lenders will charge you points in order to buy down your interest rate.  They may say you can pay "x" points and then your interest rate will be 4% rather then 4.5%.

Hard money  lenders charge points basically because they can, its just one more way for them to make money.  Its also upfront money so it gives them a little insurance.