All Forum Posts by: Michael Henry

@Michael Henry I am in agreement with the old school guys like Dolf DeRoos: seldom sell. You have heard seasoned investors say this on the podcast: they regret every property they have ever sold. (Obviously, there are circumstances that suggest to exit a property - other than to cash out - and those provide valid reasons.)

I think SFR under 250k are like bitcoin - there is a finite amount, they cannot be made anymore.

That's worth thinking about: 

It's not possible to build a SFR under 250k in Milwaukee. Cost of land, labor and material is too high. You have to buy 1960's labor and materials. Anything that has limited supply and strong demand will go up in value. In this context, here is one mistake that I see investors make over and over again, they focus on price and don't put it in connection with square footage. Small homes are not very popular and that will get worse. People don't want 9x10 bedrooms.1200-1500 is usually a good size for a rental.

I am not planning on selling properties, regardless what the market does. I am planning on a full remodel in 20-30 years from now, but by then appreciation and principal pay down will have done their job. And rent will have seen some good inflation. I think it's the best to hold on, manage, maintain and plan to refinance at some point to liquefy some of the equity that has grown over time.

@Michael Henry I am definitely interested in the Milwaukee market. I am originally from Racine so I frequently get down to SE Wisconsin.

Initially my plan is to start with a Duplex house hack style in Fond Du Lac. I will live there a year, and then reconsider my plan at that point. During the year I will save a large amount of money which will be divided up into a repair/tenant turnover fund for the duplex I already will own as well as another fund for my future purchase. Also while saving during the year I will research into small MFR (four doors) and that could include the Milwaukee/Racine/Kenosha area. Establishing a network for financing, repairs, and future purchases will also be on the list during the initial year.