All Forum Posts by: Matt Greene

Unfortunately, after our inspection, we made the decision to back out of our offer.  Far too much that would require the building to be vacant to fix.  Lots of electrical, asbestos, and structural issues.  The marathon continues. 

@Allison Cardiel I have really liked what I have seen from Edgerton so far.  Let me know if you have any questions about what I've found so far.

@Mike C. After mortgage, taxes, insurance, capex, maintenance, etc. it should be cash flowing about $350 a month.  I have an agreement with the down payment investor that we will split the profit every month until I can refinance and pay off his loan.

We have an accepted offer! In the end, it did not sound like seller financing was going to be appealing to the seller. After reaching out to a few banks I settled on a local bank that would lend to me as an LLC. They will be lending 80% with the 20% coming from the 3rd party investor. We offered at $150,000 and was accepted. I am very excited to start this journey.

I appreciate the encouragement.  Hopefully I have positive updates to follow!

Forgot to mention, the market appears to still be very strong and was my reasoning for thinking about going in at full price.  I will definitely work with my realtor to find the correct price to go in at.  

Hi, @Bridgette Davis, thanks for the info.  Maybe my ignorant excitement got the best of me posting before even seeing the property :).

I believe that the current tenants maintain their half of the yard.  I will know more after tomorrow morning. 

COC return is 15.9%, based on the BiggerPockets calculator.

Both sides are currently rented through early to mid 2021.  I have not seen the lease yet, should have it tomorrow.  The seller did provide some info, but I have not seen the financial statements yet. 

From what I can tell, the rents are a bit below market, but I will speak with my PM about that before any action is taken.

At this point, I am unsure why the seller is looking to get out.  I hope it is someone that just wants to retire or get out of the game so that seller financing would be more appealing. (Fingers crossed)

My realtor is experienced with multi-family investments.  His company has a PM branch as well as owning/operating a handful of condos and apartments.  

First of all, thank you to everyone on here for the incredible information and being so open about your experiences.  Hopefully I can help someone else while being open with my process.  Below I will be recapping what I hope will be my first offer on a rental property and am looking for any constructive criticism. I am planning on offering on a duplex in Edgerton, WI, 30 min SE of Madison, WI. I will be walking the units tomorrow morning with my realtor and property manager.

The Property 

The property I am looking at is a side by side 2 story duplex sitting on 1/2 an acre.   The listing does not show the year built, but I am assuming it is a 50's build.  One side is a 600 SF two bedroom that is currently rented for $700 a month and the other is a 950 SF three bedroom that is currently rented for $800 a month.  The three bedroom side has been updated with new cabinets and some new flooring.  All utilities are separated.  It is being listed for $149,000.

The Deal

If all goes well tomorrow, I am planning on offering full asking price and going in with a 20% down offer on seller financing at 4% interest.  I will write in that rates will balloon after 3 years as reassurance I will refinance when able to.  I am using a third party passive investor for the 20% down payment and offering him a 50/50 split on rent and 7% interest on their investment after the building is refinanced.  I will be covering closing costs and will manage maintenance/repairs.  

I will try and update as I make my way through this exciting process.  If this property does not work out, I will continue the journey.  Thanks again to all who have unknowingly helped me to this point.