All Forum Posts by: Peter Jakonovisky

Hi Folks :

I am a new real estate investor in Milwaukee area. I am planning to work with a potential turnkey provider. I am actively trying to avoid the hassle of rehab and all the good stuff. I have a good credit history 800+ and have the enough down payment (20-25%) for 1-2 properties in 100K range. I expect to have enough cash as a cash buyer later in the year.

Any turnkey rental companies in Milwaukee area that you recommend? I have heard about the storehouse 3:10 ventures. They seem to have a long wait list. Any other "good" companies here?

How is rent-ability in these areas - Thurston Woods and McGovern Park? It seems like a B- to a C class neighborhood. Thoughts?

Peter

I agree with @Bassit Saddiqi , but may be do only one 1-2 properties and keep 60K powder dry or payoff HELOC. I think with leverage, you may get to 8-10% cash on cash return with B+ or higher grade SFH. If it is less than 8%, the risk is not worth it as you are paying 5% on your HELOC.

Ok English guru,

this is what I posted. Everyone else understood this fine. Also the colon refers to NOI. Read the whole paragraph carefully. You don't have to be argumentative. Just relax.

It's wilderness resorts. I never liked chula Vista.

You are all so awesome. Thanks so much. I will look into those numbers carefully. But, the resort owner agent gave the rental income and expense history for last three years. I asked , if they were projections , but I was told they are actual rental history and actual expenses for last three years. 

One of the biggest risks is, if the property has a bad reputation or something bad happens, the rental income can easily cut in half. 

i will look at other points you mentioned - non warrantable condo.

Thanks folks. 

Peter

@charlie  Thank you for responding.

@lucas

Thanks for the reply. This is a water park resort area in Wisconsin Dells. This unit is attached by walk way to indoor water park and hence gets decent revenue all through the year. 

relatively, a stable investment. But, things can go wrong . Trying to understand what things to look for. I am generally happy with proposed returns but not sure what other risks are lurking.

curious - Did you purchase? How is it going so far?

I am also in the same boat and unable to decide if it is a good safe passive income generator.

Hi Folks,

I am looking at resort condos. These are owner deeded properties. You own them, not time share. Here are the specific financials.

proposed sale price : $400K

Net operating income

after association dues, property mgmt fee, utilities, maintenance and repairs
insurance, real estate taxes: $28,500 (average value over last three years)

Their insurance that they charge is for replacement of building, replacement of personal property and liability coverage. Do I need to get more insurance?

planning down payment : $100K
loan amount : $300K
loan rate : 4.5 APR fixed for 30 years

Cap rate : 7.5%
Monthly cash flow : $865
Cash on Cash ROI : 10%

Does this seem OK? I am looking for passive income. What are some considerations and questions to ask.? Do I go with a real estate broker to deal? or just approach the resort seller agent and use it as negotiation for better price. This is a reputable resort which is fairly busy and we have stayed there before. We like them.

I am a newbie in this. Any help is deeply appreciated.

Peter