All Forum Posts by: Shannon Persha

@Chaim Lampert good to know, that is great insight.

@Account Closed  Yes, Jorge agreed!! I used Rentometer, Zillow, and paid for a rental report for $19 from Stessa.com which I just setup per the recommendation of BP for managing my current rental property.  The report definitely supported what I'd found manually through research.  I did just discover she was paying for electric, garbage, and water, so perhaps that was baked into the slightly higher rent she has claimed to obtain.

I also spent quite a bit of time following the "Guide to Estimating ARV" that I found on BP, which allowed me to do my own comp work. I used my realtors comps for recent SOLD properties in the past 6 months in the surrounding area. Now given that street to street in a metro area like MKE can differ dramatically, I did try and stick to the same street or surrounding streets. My comp analysis puts the property value at $110K - $130K max quite honestly (my realtor agrees), and WITHOUT a garage in cold climate like MKE not only does it drive the property value down, it drives the rental interest down.

Sigh... we really liked this one, but it was a great exercise in running numbers, which brings me closer to the YES property I'm thinking.  To answer your question, we did not personally walk it, as we were remote while our realtor FaceTime walked the property with us live.  We return second week of January, if property is still active, perhaps we live walk it ourselves, and make an offer.  I have a feeling perhaps she doesn't actually have a cash buyer, given her email read "I've had a cash offer already for $130,000.00, which just came from my sign on the street. So I'm sitting on that while I see how it goes now that I dropped the price to $149,000.00. I would accept an offer anything above $140k.I know for a fact that there is not a cent to spend, and I know how much renovations cost not only in money but time and effort. I'v been doing this for a long time over here. So acquiring 2 completely independent, fully functioning and updated apartments for the price I'm asking is not a lot."  

@Account Closed Thanks bud, I've gotten hooked into the Facebook page, and planning to connect with Matt Maurice in the coming week.  :)  Looking forward to it, and thank you so much for the feedback on my post.  Happy Holidays.  

New investor in the Milwaukee area market.  We are very interested in a duplex in the Milwaukee area.  

List price = $149,000; seller claims she has a cash offer of $130,000 and said she'd accept $140,000 from us (conventional loan w/25% down).  

My numbers ran:

Potential rent (neither rented currently, but rent-ready): Figuring low end total rent $1400 to high-end $2000 (staying conservative).  Seller claims $1200 a door rent capable ($2,400 total), however my research shows the area to yield $700 - $1100 (very high end).  MEETS the 1% rule, and if rent truly ends up $2,400 we'd be at almost 2%

GRM (Gross-rent multiplier): Best case rent GRM = 70.8, Mid-Case rent GRM = 83.3, Worst-case rent GRM = 101.1

Positives:

Buyer did a full renovation over the last 6 months, truly a turn-key property.

Negatives/reservations:

Property does NOT have a garage.  Unit 1 would be drive parking, and unit 2 would be street parking.  

Local advisor said while the building and renovations have been beautifully done, the area itself is one you wouldn't want to walk around at night, so he does feel her rental estimates are inflated.  She had only ever rented the top unit, and in 3-6 month short-term FULLY FURNISHED rentals, which might be why she yielded $1200 a month in rent.  

Questions:

Your thoughts?  I'm struggling to determine the operating costs besides what I've pieced together with my limited experience of owning single family homes, and our one townhouse investment property.  We are planning to use a Property manager for this one, which increases of Opex for sure.  Roof is only 6 years old, and all renovations done in last 6 years since this new owner has been there.  

The BP calculator does show about $200-$350 cash flow per month depending on the rental income (from ranges above).  

Wow, thank you to everybody who responded, very helpful!! @Amy Roberts I reached out to the Brew City Group, as well as a contractors & handyman page for the area, thank you!!! @Chaim Lampert excellent feedback, happy to hear our strategy for the immediate future will fit in this market.  @Pete Woelfel thanks, and @Matt Maurice I will be reaching out.  

My husband and I are excited to launch our business in the Milwaukee, WI area. We have our team in place, and a realtor working with us. We are focused on duplexes in the $125k - $175k price-range. Given we are new to investing, and work full-time we are apprehensive to BRRRR right out of the gate, so more than likely looking for a property that is mostly "ready to rent," or already has current tenants. We've narrowed down our areas of focus too the following areas... Questions for the forum:

1. Does anybody have advice to lend for this market specifically, and our areas of focus below?

2. We are looking to connect with a good property manager, looking for referrals/recommendations.

AREAS OF FOCUS:  

Up Lapham Avenue

Pockets of West Allis

Waukesha

West Milwaukee

Wauwatosa 

Thanks for the replies gentlemen, I really appreciate it.  :)

Live in Cary, IL (1 hour outside Chicago)... New to investing, and building out my team.  I have gotten a couple references for a CPA firm, but it turns out they're a 1 hour drive from my primary residence, and our current rental property.  How often do you meet with your CPA, and would this be a hindrance for you?  Should I be looking closer to home, and my existing rental property?