All Forum Posts by: Jedd Braunwarth

I was in this exact situation a little over a year ago. purchased a house for $31.5k, rehab for around $23k and list price was $100k. I decided to sell, got a full price offer the same day and closed. I took the profits a bought a 6 unit apartment complex. I don't regret that choice as my IRR is much higher now. I do think about if I should have just refinances to pull my money back out, keep and rent it and then still try to buy the 6 unit. Numbers get tighter doing that and I would have had to bring more money out of pocket to close on the 6 unit so I think I did the right thing.

hello, it's been awhile since I've been on here. Any way wondering if any one has any good meet ups going in the western twin cities area. I've been spending more time up here in the last few months and looking to connect with other investors. Let me know if anyone wants to meet for coffee or even put a small informal meet up together.

Minnesota, MN, Waconia,

@Joseph Fernandez, you do! You can choose to list the property for anything you want. Of course, just like an agent listing a house for sale, you have to look at comparables in the area. For example, what are other properties near yours renting for, is yours better or worse condition, do you have more/less amenities, are utilities included or not, etc. Start by searching other properties for rent on Craigslist, zillow or try rentometer.com. These should help you get an idea of what things rent for and where to price you rental. 

Finally, if you set a price and list your property and you get a bunch of applications right away that may mean you set it right or that you set it too low and it was a bargain. On the other hand if you get a bunch of showings and no applicants then you have to figure out why you are losing those renters to other properties. Most of the time the price does not align with the competition.

@Shaquetta Chittams. I think you have to first make sure that the price you settled on with the contract still works to do the repairs that came up. Were those surprises or did you have money budgeted already for issues like this? As far as the basement humidity, I think you can do many things to prevent this. Is there an air exchanger in the house? Moving air always helps basements dry out more. You could even do something as simple as buying a good dehumidifier. I had a house flip that sat a while as we waited to close and it got very damp in the basement so I turned the air exchanger on and put a dehumidifier down there and it was cool and dry within a day. 

I think you just need to confirm that the contract price still works and if it doesn't you have to give the reasons why it doesnt work to the seller and re-negotiate.

@Joe Splitrock @Account Closed completely agree with both of you. I think my posting is being taken too broad. I do not think that every tenant with an eviction should be considered. I am saying the opposite, and is what I do, that I say no to almost every applicant with an eviction, terrible credit or a past of criminal convictions. My comments are more to say that this is a people business and I am looking at the whole picture and am considering a tenant with a prior eviction. I am not just trying to be a good guy and help someone while taking a huge risk. My risk is minimized in this one particular instance because she has a co-signer, because she moved from her friends, because she has been renting recently successfully, has money saved in the bank and ironically I know her brother... This is the first time I have ever considered it and definitely does not make me open to accepting more in the future. So, my post was more to highlight that it does not ALWAYS have to be a no automatically and that communication could be key to finding out more.

@Account Closed not sure if you are aiming this all at me since you quoted me but those are a lot of assumptions you are making about mine and other potential tenants. I look at every circumstance differently and not everything is black and white. First, my potential tenant doesn't actually live at home and is paying their own rent now. They moved across state to be closer with family and get away from their friends. I could keep going but I am really not trying to defend anyone. You also made an assumption of being a new landlord, I am not, I have 17 units and my business partner who has been doing this for 45 years had more than one could count. My worst tenant so far was a single dad with a good job, nothing in his background and good credit. We were close to eviction with him but eventually he'd pay each month. It was terrible! This is a business and you need to make smart decisions but it's also a people business and it's our job to work and help people. That is the core of the real estate business.

I am actually going through this right now @Garrett Diegel. Normally I would agree with the others and never rent to someone who has an eviction but I am actually considering it! The applicant is still young but has turned a few things around in her life, has a job, going to college, their aunt and father both are willing to co-sign, I did background and credit on both co-signers and they are excellent with VERY good income. The applicant admitted they have since reconnected with their family, which is why they are willing to help her get back on her feet. And small world but I know her brother who is a very good guy! I just may take a chance on this one... The past is a red flag but everything new and in the future is great.

sorry for all of my errors! Didn't proofread before posting!

@Justin Daniel of nobody had helped you with lawn care shoot me a message. I use a guy that is very reasonably priced, does great work and is just in general a good guy. Started using him at the beginning of this year but since then have a him a couple more of my properties and my biz partner gave him more of his own as well.

What would you like to know about waukee and west Des Moines? Definitely growing and great areas. I have nothing to back it up but my gut feeling for my own investing is to stay away from going west as that is where the most apartment buildings are being built (because there is a need) but eventually it will be over built and I don't want that competition. Again, I have no data on that but I don't invest there for those feelings. I'd definitely have a personal residence there though!

David Dachtera I don't need to get off topic here but I have no first hand experience with you either but had to step in as I've read many of your posts over the last few months and to me (and I hope newbies) that you come across as snake oil salesman not a real estate guru. Smooth with the word but that's about where the knowledge stops. I may be wrong (and I hope I am and you are a good guy) but I wouldn't buy anything from you nor would I do anything for free with you. In fact I'd be hesitate to sell anything to you because of your posts. Now, I've read many of Jay Hinrichs posts. I have no experience with him either but would jump on an opportunity to do a deal with him. He seems far from cynical but rather honest and up front. Maybe this is why you take so much offense as the truth hurts...?