All Forum Posts by: Karen M.

J Scott -- Cool!!!

Oh, guys, look at this one.... (if you have time and are interested)

http://www.firstweber.com/homes/1287378_METRO-5475_S_112th_St-Hales_Corners-WI-53130-1205

I drive by this property about 5x a day, it is very close to home where I live. I could walk there from my home in about 10 minutes.

Here is the info.
-- on the market for about 10 months
-- 3 br/1.5 bath each side
-- one side has 2 car garage, other has 1 car garage
-- rents $1,000 / $1,100
-- one tenant month to month (1 year) / one tenant expires July (9 years)
-- owner used to live there, then moved to a different house, now is selling

Let me practice the math...
Asking price $239,900
Income $2,100
Tax $6,272
Payment might be $1,500 / month (guessing 30 year, 20% down, 4% interest, and $50/month insurance guess??)

Sorry I am very new at working the math. I'll come back to this and practice a little more later tonight. Thanks!

Also, I am probably going to the next Milwaukee REIA meeting on May 18. Will anyone from Bigger Pockets be there?

http://www.milwaukeereia.com/Default.aspx?pageId=484214&eventId=616897&EventViewMode=EventDetails

Kelly N. thanks for sharing! Nice to meet ya!

Hi Everybody,

Thanks so much for the replies. I really appreciate you taking the time to talk with me about this.

I'm looking at a few other listings to start to get familiar with some areas around Milwaukee -- right now I'm looking at several neighborhoods...

In Milwaukee County -- Franklin, Greendale, Greenfield (Whitnall school district), Hales Corners, Wauwatosa

In Waukesha County -- Brookfield, Elm Grove, Muskego, New Berin, maybe Mukwonago although that is getting "out there"...

These are, IMO, all nice places to live with good schools. Too many neighborhoods?? I should narrow this down?

Yes, I'm kind of all over the place for now... I live near the Milwaukee/Waukesha county line (on the Milwaukee side) and often think about how much cheaper the property taxes are in Waukesha Co.!

It also seems like it's so very important to get a GREAT deal on buying a property to have the opportunity to achieve the cash flow.

I need to look at getting pre-approval from a bank, not that we are ready to buy anything yet... but I'd like to get to know what the rates are and what we could possibly do. Any suggestions on where to go to speak with a bank? My nephew is a banker in Hartford, maybe I should connect with him about doing business.

My biggest worry / question is -- how the heck do I know that any property will actually rent? I need to learn more about the rental markets. My big fear would be not getting any tenant at all.

There are some very nice luxury apartments and condos around where I live and why would someone rent a duplex or a single family home? Different types of customers, I guess...

I am also seeing some "as is" listings and am curious about short sales and foreclosures.

I am thinking of attending the next meeting of the Milwaukee Real Estate Investors group on May 18 to see a speaker, Jason Roberts, talk about short sales.

Fun stuff!
Karen

So for the math lesson..... the gross rent is $1,700... the taxes are $5735... the sell price was $238,000 depending on the loan terms, would this property provide cash flow?

I need to learn about maintenance/repair expenses and loan variables. I will talk with a banker soon to see what rates are like for investors and what % down -- is it 25% required?? This property looked like it was in great shape overall.

Thanks for your help with this! I need to get a lot of practice looking at properties and estimating rough costs. Thanks for taking a look at this one with me. --Karen

Hi guys, I gave a quick call to the agent and found out that the property sold fairly quick after listing. The ask price was $249 and it sold for $238. The rents were $900 lower and $800 upper. It was owner-occupied, the owner had a job transfer, one of the renters was leaving and that's why it was being sold. It is continuing as an owner-occupied property.

Justin, I am in the same boat, I'm reading and loving it and this is all so interesting and fun. I have hundreds of questions, it is clear that there is a lot more to learn. The learning is going to be an amazing experience. I hope to be ready to acquire a first property in six months to a year or..... whenever it seems like we're adequately prepared to do it and be successful.

Have fun on the journey! --Karen

Hi Everybody!

I joined Bigger Pockets last week and received such a warm welcome from members here. Thank you. This is a great online community and I am so excited to learn more, connect more and hang out here with everyone.

One of the great tips I received is to check out the Bigger Pockets podcasts -- it was an awesome suggestion and I've been listening to several... they are fantastic, I love hearing the stories and getting to know the interviewees and their unique ways of doing thing with real estate. It's a fun, easy and interesting listen -- love it.

OK, so i"m in reading mode -- ordered a few real estate books, I've been talking with my spouse about the possibilities, and thinking about our plan and strategy for what we want to do.

I am thinking that we will look at buy-and-hold for rental income / cash flow and our goal is income and eventual financial independence. I am considering single-family vs. duplexes and multifamily and we want to be in good school districts and have nice homes available for rent.

There is so much to learn. I have a few questions... and I've probably jumped the gun and found an interesting property in the MLS, although we are not ready to go yet, there is so much more to do.

Questions for everyone....

1. Did you get a real estate license? What was it like and what does it allow you to do to be more effective?

2. Did you set up a LLC or corp structure before purchasing any rental property?

3. OK, I just want to show you a property that I think is nice. Just for fun/learning. It is a nice property, looks in good condition, and in a good area. It looks -- am I using this word right -- turn key, as in, it's ready to rent and doesn't need a big rehab or clean up.

http://www.firstweber.com/vp/ListingServlet?SITE=FIRSTWEBER&ScreenID=LISTING_DETAIL_P&cd_MLS=1844509

I have to learn how to price properties, because... with a guesstimated rent price, it will not really cover the mortgage/interest/expensive taxes and there is nothing left over.

It feels too soon to call and have a chat with an agent, but I am so curious about the rules for what the price has to be in order to make a decent buy and get decent cash flow.

Of course, I need to do more reading. Any comments are appreciated and I really enjoy the interaction here. Thanks again! Have a wonderful week!

J Scott, great job and congrats on the sale.

Dawn A. wow on your rentals! I'm just learning and am really amazed by what you are doing.