All Forum Posts by: Joe Mueller

@Lisa PhillipsEach opportunity is different, and depends on the risk level an investor is willing to take, or is experienced enough too know if they'd be in too deep.  I do agree that age of the property can be a huge factor, and repairs can be made in order to relieve future issues an investor can expect. 

In my situation, I DID NOT plan on FULL renovations of each property.  Mine were sold to me with roofs/siding completed within the last 2 years (now 3 years) as the seller was a roofing/siding contractor.  Each property (which I physically inspected over the course of a 3 day trip to Milwaukee) required different repairs in different areas.  Some needed a full reno of a unit, some just lipstick.  Rental income monthly helped me personally decide where I needed to plan to have my construction crews at next... Obviously the goal being to pay for any repairs with the income that I had coming in.

 I also could have potentially sold the portfolio for a profit piece by piece, leaving me with an alternative exit strategy that I saw as worth the risk, should I get in too deep.  Time would have been the factor vs. the cost of money.

Good luck, and I am looking forward to checking out your videos as I type....

I have 17 properties (26 units) in Milwaukee that were purchased as a portfolio just over a year ago at a price per property of roughly $20k each. Here's my 2 cents... Reserves Tenant screening Maintenance Management These "sub" properties can eat a newbie investor alive that is in the mindset that they will be as easy or should be treated the same as a $100k property. I planned on 18 months of potential losses on this portfolio knowing that each one would need some form of major to minor repairs. I planned on losing each tenant due to the "gentrification" process of each asset. I planned on management that could be sub-par, quit on me, or lose interest in this type of high maintenance investment. Ultimately the acquisition has turned out pretty much as I expected. Several months of loss due to losing tenants, replacing them, repairing during turnover. City inspectors mandating unexpected repairs. Cans of worms opening up during each aspect of the process. My Property manager stuck with me and believes in the long term goal... (Happy about that) Typically my losses were "about" equating to my income, minus 2 months where I paid fees for major repairs that I needed to do, and physically cut checks to contractors for more than my income those months. This month, March 2015, 1 year after purchase, I collected a check for $8300 which makes me slightly positive over the last 12 months of ownership. At this point, we have 1 more unit that needs "major" attention which is being repaired in the coming weeks and we have a tenant ready to move in April 1. Depending on the locations/neighborhoods/rental amounts these CAN be lucrative investments. But don't plan on steady positive cash flow in the same ballpark month after month, and if it's your first investment, or you're newer to the business... You may need to really consider options that suit your risk level. My situation was a plan to stabilize a risky portfolio and sell it in year 5. Again, my 2 cents.

All in Indy yes

I've got 11 homes left in my inventory available for land contract.

Let me know if you're interested and I can send you a list.

They all need rehab.

Joe

Can we obtain any testimonies from some of the investors?

Dodd frank only restricts balloon payments on owner occupants. If the buyer is an investor Dodd frank doesn't apply. At least from what I've researched.

Awesome job!! Congrats!!

Wow! Nice work. Time to hang up my snow shovel for a peach picking basket!

Great floors! Home looks very nice!

On Freddie owned REO in Illinois if there's a tenant in place they require the tenant to vacate prior to the sale unless you signed a contract/addendum stating otherwise. When they sell these tenant occupied assets they fully intent to turn them over vacant. I'd confirm the same with the listing broker on it.