All Forum Posts by: Spencer Krautkramer

I'm looking into getting my first house hack and determining how much I should buy down my rate (and when the break-even time period is). I know I will need to live in the property for at least a year and I don't see interest rates going down significantly in that time period - after that is unknown. Is it better to refinance while you still live there to keep an owner-occupied loan with a lower interest rate, or would most people move after a year (for a better living situation/job/property) and refinance later with an investor loan once they've hit 20% equity and rates are lower? Also, do most people try to take out a HELOC before moving so that they have it for future projects?

Quote from @Kerry Noble Jr:

ask em to do 4 Draws.....or ask em to pay per line item on the scope of work. They will lean more to the draws

 Hi Kerry, thanks for your response! To give a little more context to the work, it is just about a $7,000 project and will only take a week to complete. Do you think the payment method they asked for makes sense for this scenario?

What is the standard protocol for paying contractors when doing work on your property? I am a new investor and beginning my first larger scale project. The contractor is requesting 40% pay at the start of the project and the remaining pay after completion. Is that relatively normal? I work in the construction industry and we typically pay our subs on a monthly basis based upon what has been completed, but I am not familiar with the residential world.  What are everyone's thoughts?

What are people's suggestions for a type of loan to get started? I am looking to purchase a duplex and owner occupy it so FHA is definitely an option and allows for a low-down option. However, in Milwaukee the market is currently very competitive option, and I've been told for any multifamily property I will need at least 15% down if I don't use an FHA loan. I'm wondering if anyone else has other loan options at the 5% down mark for duplexes that are conventional rather than FHA to look for attractive to a seller. Thanks in advance.

For those of you folks in the Milwaukee area, I'm seeking some advice and expertise. I am hoping to become a rookie investor in the area.

I'm looking to do a house hack in the Milwaukee metro market with a 4-5 bd duplex. I've been looking at the higher-end areas such as Wauwatosa.  Which areas tend to get the best rental income in the $300k+ purchase price market?

How do people run numbers to compare properties in a neighborhood without MLS access if you're not an agent? I'm looking to buy my first deal (house hack) and I am looking in a specific market and want to study past sales and do an in depth comparison and analysis. That way when I'm looking at a property on the market, I can run a comparison to see how it sits in comparison with other similar properties that have sold in a close proximity. My agent is super helpful with this for me, but I'm curious what people do themselves without the MLS. Any advice is welcome

Quote from @Mike Lowery:

If youre moving back from Denver, then you will most likely first have to establish employment here. Unless its a lateral transfer within the company or something like that. What is the total purchase price you are looking at? Even if you do a $300K duplex deal, you should be able to cover closing costs with your current capital. $290K @ 6.5% over 30 years is about an $1850/mo payment for principal and interest. Factor in taxes and insurance and your probaly looking at $2300/mo out the door. You should be able to cover half of that in rents received from the other half of your duplex. All that said, what it boils down to is how much are you paying in rent currently? Would there be any excess left over after debt service to allocate for property rehab?

Ideally you would want to find something where you are able to save $250-500/mo in terms of the new living arrangement vs current living arrangement. You can take the excess and start working on the unit you choose to reside in. Learn to do the work yourself and ask your friends for an extra hand. Hire the big ticket items (plumbing, electrical, etc.). You would be amazed at how reasonably priced you can rehab a unit/property for once you do the research and get solid people to help you out. 

Itll more than likely be tough at first, but know that this is only the beginning to something great. You have to start a foundation by actually digging into the ground, not just starting on top of the soil. 

Mike, thanks for the response. I've been looking in the range of roughly $270k - $330k, and having a seller credit of about $5-6k to cover closing costs. I'm currently paying $775 in rent so I'm trying to keep my portion of mortgage under that.  It appears it may be close to that, but hopefully in a few years I can refinance after getting about 15% equity and have better cash flow statistics. I'm a pretty handy guy, so I'm looking forward to any sort of renovations (preferably rather than fixing problems haha). Thanks for the words of encouragement.

Hey Everyone, I'm a rookie investor looking to make my first deal in the Milwaukee area. I'm specifically looking at doing a duplex house hack in the Wauwatosa area. I'm 25 and would like to not only be in an area that cash flows but also enjoy the area as well. I'm familiar with Tosa, but I'm wondering if anyone lives/invests there and can give any advice. What areas do most of the young professionals live in? I'd prefer to target young professionals for tenants to get higher rent and also be in an area with similar people to myself.  Any suggestions are welcome and helpful. 

What are some of the best areas to do a house hack in? I've lived in Milwaukee for several years, and am moving back and looking to invest.  I am curious what people think are some of the best areas for this.  I'm looking for a 2/2 or 3/2 duplex where I can live in it and rent the other.  I also like living in prosperous safe areas, so I'd want to keep that in mind.  I'm okay with an older home that needs some cosmetic TLC.  I had the Bayview and Wauwatosa areas in mind, but I'd like to pick the brains of those of you in this forum.  Thanks in advance.

Hey Everyone! I am newer to BP and this is my first post in a forum. 

I've been wanting to get into investing for a while now, however, I have never had the capital to do so. I have about $12k to start with, so I am planning on moving back to Milwaukee, WI where I'm from to invest where it's much cheaper. I'm hoping to acquire a duplex where I can use an FHA to do 3.5% down, and rent out the other unit to help pay down the mortgage. I would also like to acquire a place that needs some work (or at least cosmetic). I realize that if I take out a loan for some rehab work, I'd have an additional monthly payment, although I could eventually do a cash-out refinance once it's rehabbed.

Does anyone have any ideas on how best to fund the property as well as the rehab considering I don't have much capital to put down or use for rehab work? Or any other thoughts/suggestions on my plan in general?