All Forum Posts by: Red Smith

Hi Cody,
We are in Green Bay but would like to connect with other Wisconsin locals with like minds. We sent you a connect request. The same goes for all responders to this thread. We just recently passed the WI RE State Exam!

Haven't heard of Green Bay?... I can't believe that? I don't know about Chase City, but Green Bay has a rising market. Not too good for buy-n-hold as the renters are about maxed out.  The 1% rule is a bit of hard to hit here, and 2% is just not realistic. As an example, there is a Quad for sale here @ 389k, new appliances, new roof, new paints, and above grade finish already. Fully leased its take is around 3500 monthly. $850-900 a month for a 2/1 here is steep. To hit 1% you'd need to take in $975 per unit.  SFR is a bit easier, but Green Bay is a limited Market, we got like 6 neighborhoods

Good news, your not alone! Some are well accomplished in the Fox Valley, some just starting out too.  Its all about building a group that can support your efforts and keep you on the positive path. Connect with us!

Refinances are taking about 2 months on average for us here in the mid-west. This means to me, that if you are looking to buy a renovation today, its going to take closing(? Days) + renovation time + refinance (60+days) So your looking at a longer than normal time to refi. Im not saying its a bad time, that's opinion and mine is probably as bad >/<, as anyone else's. But, right now there is a backlog and the banks swamped with refi's on primary residences Its going to take longer to get your equity back if not for any other reason than slow refi

@Joe Seegers

Thanks for the honest advice, its in a decent Manitowoc neighborhood (901 Hamilton)... But considering the house has age,  utilities could  be an issue, and a drive by showed me a roof needing replacing sooner than I could make up for. I just moved to the next one.
Im thrilled that there are some investors from the Fox Valley willing to offer advice and knowledge to a new investor, er pre-investor. And yes,  a side by side purpose built duplex seems to me a better and more reliable property in all the ways you mentioned. I seen a couple in Menasha that looked  decent.

@Darius Ogloza
 Thanks a bunch for all that info. Obviously we need some deeper digging and get a better grasp on all the numbers before we make any move especially when its critical that our first one goes well. again thanks

@ Dairus Ogloza,  yes sorry, gas is on the electric utilities bill. the Electric boxes have already been separated so it would need a second meter, and Im not positive how complex the gas separation would be or the costs. Any guidance on that would be helpful as we are as green as grass on Lambeau

@Darius Ogloza Part of the rehab cost is separation of electricity, but the water would nee to come out of capex.. thanks for pointing that out for me, we hadnt thought about the water being married

Originally posted by @Angel G.:

"what is your investment criteria..."
Being our first investment, NOI feels like the fastest path to the next property. So we have set our CapEx at 25%, and a goal of $200 per door. We plan on buy and hold for a minimum of 5 years.
And thanks to James for pointing out we shouldn't pay above market price...seems like wise advice

We are looking at a multifamily home in NE Wisconsin. Price recently dropped from 100k to 95k.  My own CMA puts the property at 85-90k, so will probably offer a lower amount to feel out the bottom. However, we have done the numbers at asking price and would like if we should be looking for better numbers or if this is looking sound... And thanks for being here doing what your doing!

Purchase price is 95 k - DP 20% (19k)  - carrying a balance of 76k - Closing and rehab is 13k
Monthly rental gross is $1350  -CapEx = 25% and the Mortgage with PITI would be $530
NOI is $435 - CoC ROI is 16.24% and cap rate is 8.1%