All Forum Posts by: Brandon Stevens

I'd say it all depends on your objective. If your just trying to help your mom out, your thinking your breaking even but there is always something so I'd figure it would basically be an expense, even if its a small one. The next question is if you can only charge her $100 less than market. When she moves out you'll only be able to charge $100 more and then be making $100.00....if there were no other expenses...Yes you'd be paying the mortgage down, but on a 30yr note, you'll basically be paying interest for 10 years hoping the appreciation goes the way you'd expect. 

As an investment, it doesn't sound great, are there any duplexes in the area? The at least maybe your mom could have much lower rent and then when she moved out you could have the opportunity for cash flow...

I apologize, we try to stay WEST of 35th :) GL keep us updated. 

I'd venture a guess that some other people on BP might be able to give you a better account of that area in Milwaukee. We own properties in the neighborhoods directly east of there and we typically try to stay east of 35th, we've had no issues in those neighborhoods. That being said, I know there are much worse areas you could find in MKE. 

@jasonbotts would be able to help you with insurance in Milwaukee. 

No worries, most of us are in Milwaukee for the CF, we understand. 

With the assumption the tenant pays most of the water, gas, electric...

Purchase Details

--------------------
Purchase Price = 80,000
Closing Costs = 4,500
Renovations = 1,500
Down Payment ($) = 20,000
Down Payment (%) = 25
Interest Rate (%) = 5
Years = 30

Income (Monthly / Yearly)
------------------------------
Rent = 2,200 / 26,400

Expenses (Monthly / Yearly)

------------------------------
Property Tax = 250 / 3,000
Management Fee = 220 / 2,640
Insurance = 145 / 1,740
Water = 50 / 600
Sewage = 100 / 1,200
Electricity = 50 / 1,200
Repair Estimate = 291.67 / 3,500
Vacancy Estimate = 150 / 1,800
Misc = 100 / 1,200

Results
----------
Cash Required = 26,000
Loan Required = 60,000

Monthly
----------
Income = 2,200
Expenses = 1,356.67
Financing = 322.09
Net Income = 521.24

Yearly
----------
Income = 26,400
Expenses = 16,280
Financing = 3,865.12
Net Income = 6,254.88

Capitalization = 11.77%
ROI / COCR = 24.06%

I'd say about $1,300/month including expenses and financing is a safe bet. 

This does not include management, budget 10% for a good one on a stand alone. 

4% might be generous on a multi like this, I'd budget for closer to 5%. 25% down might get you a little better rate. 

Where is this located, the neighborhood choice will likely get ya the most feedback from the MKE crowd on here. 

If cash flow is your objective and ya have 30 year loans to spare might as well stick with it. I'd personally do a 20yr if its available. 

Knowing of the houses i milwaukee you have already seen...there are some bye some of our properties. My question would be what type of clientele are you going to be trying to attract. Unfortunately the type that typically live in those places are what you have already seen. I understand the city of Milwaukee is currently trying to discourage rooming houses in general and has been policing property transfers as such requiring some owners to change these properties back into 4 or 2 unit uses. Im not sure of their exact stance but I know it has been prevelent in the contigency wording of some of their listings. The turnover is what would get to me pretty quick i think,it would really have to be worth it financially for the time it would take to manage it.

looks good. Hair darker on the walls, frame out the bath mirror, doesnt look like ya had much option on the kitchen sink placement, no need for the multi photo, reorganize others. Just my thoughts. Looks great though  should show well, i usually pass on the sparse stanging and ya shouldnt need full blown at this price point.

I'd 2nd @Jamie DeRossett. Both a great markets and both are really hot right now. Its a pretty strict 1% rental area and if your flipping your going to have to do some work to find a good deal. They are just not sitting our there on MLS like some other cities. We run with quite a few of the big buyers in the city and its one of the most sophisticated investors groups I've been a part of. One guy I know wakes up @ 4am every morning just to look for deals, says he probably spends 3 hours a morning just looking online before he does any other marketing and he's already a multi-millionaire....

Our primary residence we gutted had the "razor blades in the wall" fun times, luckily my wife found them not me :)

Also extremely disappointed with this company. We were strung along for 2 months advised more than once we were ready to close only to have them ask for additional documentation on or after closing dates. To say the communication was poor would be an understatement, they have no interest in meeting you closing dates...whenever they get around to it. We had high hopes of this being a good partner to help us scale our business but were very disappointed. I'd look elsewhere, and I surely wouldn't put something under contract and then go to them.