All Forum Posts by: Steve Donovan

Hi @Ashley D Moore  There are several cities in Wisconsin where you you could get some great returns on that $60,000.  Green Bay was just listed as the #3 city in US News and Business Report's 150 Best Places to Live in the US list.  Best of luck to you in your investing future!

Hello @Rachel Mellies  As others point out; you will build more equity in the do it yourself route vs turnkey, but that assumes that things go well.  Many things can and do go wrong in a rehab:  the $7000 bathroom upgrade that turns into $25,000 because of a bad subfloor, because of the leaky pipe, because of...; the lost rental income due to extended rehab time because the contractors don't show up as promised etc.  I'd be comfortable if I were you if you were working on a project in your geography where you could watch over it or if you had an established team you could trust in a distant city who could be your eyes on and boots on the ground.  Turnkey is a trade off between certainty and risk and the potential upside is the reward if it works out.  All the best in your investing future!

Greetings @Angel Wu As others suggest, there are many markets where you can exceed 8% CoC returns. Double digit returns are common in areas of the Midwest and you don't need to do any rehab in order to get them. Do you research and make sure you are comparing apples to apples when comparing properties and markets. All the best to you in your investing future!

Hello @Yuepheng Vang  As Mitch states above, you need to review your loan documents and should probably have a discussion with your lender to see if your mortgage is assumable by a new buyer.  If not, there are ways around it, but you'll want to be very careful in the way you structure the deal and should involve someone who has done it before.  All the best to you1

Hello @Heather Thuli and welcome to Bigger Pockets! If you are seriously looking to get into investing in Wisconsin, I suggest you look into joining one of the REIA's located around the state. You will find a great group of like minded people and the meetings are very informative and enthusiastic. You can find more here: https://www.wiscoreia.com/  Use the location drop down to find the location that is most of interest to you.  Best of luck in your investing future!

Greetings @Hochi Yang and welcome to Bigger Pockets!  I do a lot of investing and turnkey properties in Oshkosh, Appleton, Green Bay, and surrounding areas.  Feel free to reach out if you ever need some advice or want a second opinion on a deal.  Best of luck in your investing future!

If you can't find properties that cashflow in your area, you need to widen your search.  They are out there, probably just not in your own market.  Some people buy knowing there will be little to no cashflow in the short-term, banking on appreciation.  I have always thought that was a gamble not worth taking, and it is even more risky in this time of rising interest rates.  All the best to everyone in their investing future; there are interesting times ahead!

Hello @Cheza M.  I agree with the others who have said that rates will remain high for the near future, in fact the Fed has suggested several more increases in the Fed Rate yet this year, so rates will likely increase from current level.  That said, when evaluating potential investments, find out when rents were last increased if tenants are already in place, and how the current rent compares to market rates in the area of the property.  Rents have been increasing so quickly and at such a high rate recently, that you may find out your property has some rent runway in front of it.  Knowing that you can increase rents can make a considerable difference when evaluating properties even in these times of higher interest rates.  A good place to determine appropriate rent level is www.rentometer.com where you can get a limited number of queries for free, or pay for the PRO version and get unlimited with additional information.  Best of luck in your investing future! 

Thanks @Dmitriy Fomichenko for the very valuable information!  All the best to you!

Hello @Charl Van Wyk and congrats on a great project! Question for you regarding the non-recourse loan... I was under the impression that the IRA has to put at least 50% of purchase price down in order for non recourse. Apparently that is not true? Again congrats to you and best of luck in your investing future!