All Forum Posts by: Rob Myers

Sorry to hear about your loss.

One more item you are going to need to consider is what to do with the property once the house has been razed.  I'm assuming from the price you paid for these duplexes, they are in pretty rough neighborhoods in the City of Milwaukee which will make it very difficult to unload the lot.   You are still going to have a property tax burden to deal with every year.  Some thoughts would be donating the property to a charity or contact the surrounding property owners to see if they have any interest in the property.

Most of the banks and mortgage brokers I've spoken with all require 25% down for house #2-#4.  After #4 it goes up to 30%.  The reasoning I was given was that the loans needed to conform to Fannie Mae/Freddie Mac guidelines.  If you can find a small lender who offers portfolio lending your options may be different.

Networking is the best way to find a reliable contractor.  Get engaged with your local real estate investing group and get their recommendations.  Talk to friends or coworkers that have had recent renovation work done.  Posting here is a good start - hopefully someone from your area jumps in with a recommendation.

Word of mouth is far more reliable than Craigslist.

Another option is to do a decent enough sanding job to remove the old adhesive (check for asbestos) and then apply a high quality floor paint.  It's not for everyone, but you can get a nice look with a durable finish.  It all depends on what is popular in your area.  If you do decide to paint, talk to a real paint store, not a big box retailer,  and get their recommendation on a product.

If you are selling small parcels, have a private sale approach that avoids realtor fees. On a low valued piece of land (<$40k) some realtors may want to charge you up to 10% commission. FSBO should keep sell costs around $1000-$1200.

Before you spend any money trying to correct the issue, reach out and talk to the neighbor.  Tell them your situation and that you have a strong need for the parking space.  

To have a legal agreement you need an offer, acceptance and consideration.  I don't see any consideration ($) in this arrangement so if they play tough you should be able to issue a letter revoking their use of the parking space. 

Have you considered purchasing a property with owner financing?  You can build your two years rental history to satisfy the lenders with funding from another source.  The rate will be higher than what you would get from a bank, but it's a way to get some momentum.  Refinance is always possible after you establish your rental history.

I am going down the road of picking up rentals as a buy and hold investor for the purpose of supplemental retirement income.  It's one more source in the retirement portfolio along with a 401k, social security (add jokes here), etc.  Cash flow is still important as I want it to be positive, but for me it's not my #1 goal.  I want to buy a property below market price in a decent area, rehab, then rent it for a while.  A long while.  When I hit retirement, I hope to have at least half my properties free and clear and would change any cash flow from property acquisition to income.

That's my approach to buy and hold.  Everyone is going to be a little different.

Try the search site from the State of WI DSPS:

https://app.wi.gov/licensesearch

Also, if you want to do a general business search to see if someone has their business properly on file with the state, try the site below. 

https://www.wdfi.org/apps/CorpSearch/Search.aspx

In my opinion, it depends on the type of property.  If it were a simple single family or duplex, I would prefer to bring in your run of the mill residential inspector.  They aren't experts, but they can flag issues that need to be looked at further by a professional.  2-3 hours and you have the information you need.  If you are considering something larger, I would bring in the specialists.