All Forum Posts by: Matt Morgan

 Thank your sir.

I've decided to free up some cash to start focusing on fix and flips which means 4 of my cash flowing rentals must go. 

3830 N. 54th Blvd. - $86,000 - leased for $1,200 month

3bed/2bath, 2 car garage. 1450sqft.++. Bought this as a flip, decided to rent it. This house has had nearly $50,000 of work injected into it in the last year, brand new everything. Finished basement. 1-year lease signed in September and runs through March 17'. 

8652 W. Lancaster - $65,000 - leased for $1,000/month

3 bed/1bath. 1,150sqft. Everything in this house is brand new and rental proof. Tenant has been in the property for a year at the end of January and will revert to a MTM lease then. 

2770 N 53rd. St - $41,000 - potential $775/month in rent.

2bed/1 bath. 775sqft, 1 car garage. Just spent over $5,000 on new floors, paint and cosmetics. Had new roof put on last year. I'm willing to place a tenant at $775/month if bought at asking. Very low taxes for the area of $1,150/year. 

6032 N. 61st St. (duplex) - $67,000 - both sides rented at a total of $1,375/month

Two 3bed/1bath units, 950sqft./unit, 2 car garage. Tenant on upper is MTM and has been in property for two years. Lower unit tenant just signed a year long lease in September. Bottom unit received overhaul including fresh paint during turnover. 

...is a private money lender to help fund my rental portfolio. 

Your turn. (Don't be shy, Santa could be very generous this year)

Awesome job, the unit looks great!

Your ROI is phenomenal, too: You should see about a 40% annual return on your money invested and assuming a cap rate of 10, you just added $40,000 in value to your property. And that's just from one unit.

@J Scott Although my experience has been much more limited, I've seen pretty much the same. This particular home fell out of escrow twice, and both times were because they thought the sky was falling when they received the inspection report. The items detailed were insignificant, but the inspector definitely didn't help paint things in a positive light. They didn't even negotiate for repairs, just backed out immediately. 

@Sam Erickson Lol, I don't disagree with you but I've been lucky enough to work with a few good agents out there. My agent when selling was actually my project manager - we did a good job marketing and I felt comfortable with how the process was handled. The buyer's agent obviously failed to do her part to keep the deals together through escrow though.

@Tye Brooks Good for you for wanting to get started. Although I have an LLC in Milwaukee, I kept this property in my own name. I believe there may be some tax benefits to using an LLC, but I would consult an accountant before you decide what to do there. As far as who's funds to use, that's completely dependant on your financial situation, risk appetite, and contacts. I like the idea of using OPM but on your first deal, this may be hard to obtain. Do some research and good luck!

@Steve Babiak Good point. If the exit strategy was a rental, I would've forgone the finished basement entirely and definitely not used carpet. I thought the end buyer would appreciate carpet more and wouldn't care about the dampness-factor. Now I'm stuck with it. As far as the tile goes, it's been a while since that was an issue, but if I recall correctly, there were issues underneath the tile...wish I could be more specific.

@Dawn Anastasi Ya I can't disagree with you at this point. I would probably be interested in trying something in Wauwatosa but I won't be doing any flips in North Milwaukee from this point forward. I'll stick with rentals there.

@J Scott Do you mind sharing what your biggest hurdles were when flipping in the Milwaukee area?

@Jared Vidales Haha, I'm going to withhold sharing that success story until it closes. Don't want to jinx it.

@Account Closed Ya, I wanted to illustrate the point that although I did my due diligence and ran my numbers for the most part correctly, this deal still fell well short of what it was supposed to be. It's important to go that extra mile to insulate yourself from worst case scenarios or things out of your control.

Also, hard money may still have been feasible here if I had a bank lined up and ready to go with a cash out refinance. 

@Mike Wood I actually prefer carpet in bedrooms and basements. Anything but that just rubs me the wrong way when I see it. Call it a stigma.

@Jay Hinrichs That actually makes a lot of sense. If a person paying $1,200 a month in rent wanted to buy a house, that same $1,200 in rent would get them a much nicer house. (This isn't the case in some areas, but Milwaukee's price to rent ratio is so out of whack it's especially true) However, a lot of these sub $100k buyers are getting their downpayment paid for through assistance programs, and I'm not sure that would be the case for more expensive properties, which would keep them away from that price point.

@Ramon Jenkins 53216. Grasslyn Manor to be specific. I'll PM you.

@Mike Wood Thanks Mike. Yes, I'm about $80k all in @ $1,200 a month in rent. Not my best, but not terrible. There was tile in the basement but we removed it due to water damage and put in carpet.

@Sam Erickson This was a $27k house in a decent area, so suffice it to say it needed a lot of work. Major costs were finished basement, new kitchen, new windows, HWF, garage roof, new siding, paint, etc. Then there's a mile long list of miscellaneous stuff as well. Had the home sold for the projected price, I wouldn't be unhappy with the total rehab cost. 

@Account Closed Thanks for the kind words. I'm looking to cash out refinance and potentially keep in my portfolio.

@Steve Vaughan Now there's a silver lining!

@Daria B. I initially projected a $30k profit but instead rented it out. So aside from some cashflow, I haven't made anything yet.

@Juan Carlos Quiroz Zolezzi That home is actually in Milwaukee, but I invest both there and here in Phoenix. I'll send you a request.

@Travis Sperr Thanks! The vast majority of my investments have been winners but I do know that in real estate, things rarely go as planned.