All Forum Posts by: Peter K.

City of Milwaukee does exterior code compliance after sale, and correcting issues falls on the buyer.  I've found their requirements to be reasonable, for the most part.

Some of the Milwaukee suburbs had programs where prior to sale the owner had to pay a fee and have a municipal inspector come out and inspect the interior and exterior of the property.  Any items noted on the inspection had to be corrected, including using licensed plumbers and electricians for any plumbing and electrical issues, prior to issuing a certificate of code compliance.  This was all required to be done prior to sale.  However, in the state budget passed this summer, a prohibition on these pre-sale code compliance inspections was included so they are no longer an issue for sellers.

You live in a market that investors who live elsewhere love to invest in.  Yes, taxes seem crazy here in Milwaukee, but really, they aren't that bad.

Get involved here.  Shop and buy one here, rent it out yourself, learn from others who are doing the same.  Then decide if you want to hand it over to management or buy elsewhere.

My last three, all in 53218 zip code:

#1: $50k purchase price
New roof, water heater, some flooring, fix up, and garage repairs needed.  All in under $70k.  Rented at $1,115.  2015 taxes were $2,550 on this one.  I'll give you this one--crazy taxes.  But it's in a nice pocket.  I'd rate it a B-.

#2: $28k purchase price
New roof, furnace, some flooring, and other work needed.  All in under $38k.  Rented at $795.  2015 taxes were $1,031. ($300 more than your example)

#3: $35k purchase price
New furnace, some flooring, and other work needed (see a theme here?)  All in under $39k (will be putting a roof on for $3,800 in spring) and rented at $750.  2015 taxes were $1,112.  ($380 more than your example)

I'd consider selling either #2 or #3 to you for $54k.  Heck, I'll even cover your taxes for a couple years.  :-)

I see these turn key deals advertised and they aren't for me.  Sure--if you have a crazy busy day job and money but not time to invest, it can make sense.   But I am building a business.  Eventually that can mean training employees to do the work for me at a lower expense than a management company could provide the service for.  But, in order to train those employees, I not only need to build a portfolio, but just as importantly I need the expertise and experience learned by dealing with all the crazy stuff a rental can throw at you.

As a new investor you may look at other people buying and getting properties fixed up and rented and think it looks like something you don't know how to do--so the turn key option looks good.  But remember, we all jumped in somewhere.  I've made mistakes.  I've had some crazy interactions with tenants, bad stuff happen at my properties, paid too much for contracted work, and bought properties that were mistakes.  But I learned from every one of those mistakes.

Hi Matt, I'm interested in being on your list.

Thanks for posting Ramon!

Don't send the tenant anything.  Hire a landlord tenant attorney in Florida.  Send them your lease and rental documents, tell the attorney that you want to make sure that the tenant moves out at the end of your current lease, and ask them to handle sending any  notice required to do so.

Evicting now is not worth it--you have two months left on the lease.  If they are still in the house on March 1 then file for eviction.  Money spent on an attorney to help you now will be money well spent.  Learn from the process and you will be a better landlord for it!

Don't expect mortgage rates to jump due to the fed funds rate increase.  The Fed can control short term rates, but the market controls mortgage backed securities and mortgage backed securities determine mortgage rates.  

We may see a small increase in car loans, HELOCs, and commercial loans though.

Wow, after watching the video it's clear that the house needs to be torn down.  Sorry you are dealing with this.

I admire your compassion for the tenant, but I would not want to continue renting to someone who is hoarding and won't let anyone in to perform maintenance.

I owned a property with the same design for 10 years and never received negative feedback on it.  It was in a nice suburb too.

Hi Brian--

I've got a great accountant who is in Mequon.  He's done a great job for me for five years now.  Send me a message if you would like his info.

I'm buying SFR's on the northwest side that I can be all in for under $50k, preferably $40k. Also looking to buy a 4 unit building with similar price per door. I self manage so can't give any personal feedback on management.