Questions from Inspiring Investor In Wisconsin

[Catherine P Jassey]

Hi there, my name is Catherine and I am 32 years old. I live in Madison, Wisconsin, and I am interested in investing in small multi-family units in the state. My aim is to invest in real estate without using my own money. Is this a good niche for Wisconsin? However, I am wondering what would be the best financing method for small multi-family homes in Wisconsin and I would love to get some recommendations on that.

To educate myself, I am currently attending virtual training sessions, reading books, and listening to podcasts related to real estate investment. However, I am eager to network with other investors in Wisconsin to learn more from them. I am also looking for a mentor who can guide me through the process. In exchange for the opportunity to learn from them, I am willing to work for the mentor for a few hours every week without any pay.

[Peter Falk]

Hi Cahterine,

If you haven't done so, I would talk with a lender about owner occupied 1-4 unit financing options and see what you qualify for.  That would let you get started as an owner with full control of the property (no partners).  If needed, friends/family typically still can help gift you down payment funds (can pay them back with interest after closing, but in my experience the lender probably will want it to be noted as a gift for underwriting).  Owner occupying a rental property is just a great way to get started as your tenants subsidize your mortgage and property expenses and you'll get the lowest long term debt interest rates as an owner occupant.  

Therefore, I would start with the financing knowledge of what you could get approved for and how much you need to save up for a down payment as that may be closer than you think.

I'm in Madison as well, and as you know it remains a high demand housing market (prices continue to increase, but rents have been as well).