All Forum Posts by: Mike Lauer

You can usually borrow money from a 401k, and I think typical terms are you can borrow half of your balance up to $50k. Usually the interest is below 10%, which for the right deal would make sense in terms of funding a down payment or a rehab. If it’s a BRRRR you could then pay it back quickly. Just food for thought.

They both sound good. I’d go with the first to apply, and give them 48 hours to sign a DTH.

I knew I wanted to become a real estate investor, had just read Keller’s book, and then started furiously seeking info online. Just about every google search I did led me to BP. I discovered the forums, then the webinars, then Brandon sold me a Pro membership, then I got my first rental :)

Nice job man and congrats! I just refinanced my first BRRRR and it's a great feeling!

@Melissa Gittens I refinanced with Compass Mortgage.

@Pete Woelfel I managed the project myself and hired electrician and plumber to do that work, hardwood floor guy, and my handyman (who's a carpenter by trade and also a GC) did almost all the rest. I did my kitchen design at HOBO, and bought my cabinets, flooring, tile, and counters there. I bought all materials/supplies and brought them to the house, and my handyman did the actual work in the kitchen. I did some minor repairs myself. So I was pretty involved, handling all the hiring of contractors and scheduling, making sure we were on track, scheduling inspections, etc. I'd estimate 35 hours over the course of 6 weeks of my own time.

I knew my electrician from previous work, and found my handyman and floor guy from a couple different Facebook groups. If you're not already part of the Brew City REI group (local BP meet-up), definitely join up. You can search for contractor recommendations in that group. I got some recs from Marcus my agent as well.

In terms of estimating rehab, Marcus was really helpful as he has a ton of experience rehabbing houses. I also have some experience with two live-in flips that I did -- although most of the lessons learned on those were what NOT to do, haha. And J Scott's The Book on Estimating Rehab Costs was invaluable for understanding how to think about projects, how to manage them, and broadly how much things cost.

Send me a PM if you want to chat more about it, and good luck to you!

@Pete Woelfel @Sam Ferguson @Nixon Davis @Melissa Gittens @James Wise @Stu Basham thank you for reading my post and for the kind words.

@Rebecca Knox thanks! And thanks for all you do here in MKE.

@Scott Harper Thanks for commenting, good question. I don't really know the reason this one sat for so long, but my guess is that it was a combination of the "right things being wrong" as @Marcus Auerbach would say. It had some foundation issues in the past, and all four walls were braced. This may have scared some buyers and/or agents. In reality what could have been a $6k foundation repair ended up being about $24k (the seller had a box with all the receipts from work over the years). It is in a really great school district, but in the less-desirable part of the suburb, right on the edge of the city. It had the original kitchen with almost zero counter space, no dishwasher, old cabinets, ugly vinyl, etc etc. It's a 1.5 BA, with the full bath down and half bath up. And the place smelled like a German Shepherd.

What you're saying about your market resonates with me. SFR inventory is low in the suburbs and it's been difficult to find deals like this on MLS. This kind of deal doesn't come along too often, but I've tried to be diligent about tracking properties and spotting opportunities to jump at the right time. My partner and I just got another SFR under contract yesterday. It's not a screamer of a deal but it will cash flow and we can add some value. We'll probably be able to take some cash out in 12-18 months.

Here's to more mysterious circumstances in the future for both of us!

@Philip Williams @Rob Stein @Marcus Auerbach @Brian GarrettThanks all for the kind words. This has been a hell of a lot of fun, and it's so great to see a theory turn into reality.

@Account Closed I'm talking about suburbs that are immediately adjacent to the City of Milwaukee, e.g. Wauwautosa (west), West Allis (southwest), Brown Deer (north), etc. That's mostly where I look for deals. Hit me up if you want to discuss! And hope to meet you next time you're out this way!