New from Central, Wisconsin (Stevens Point)

[Johnny Hastings]

I put some pretty detailed info in my profile, so I won't reiterate all that here. Suffice it to say I'm into residential rentals, my first purchase was a distressed 12 unit which I have since turned around, and I've picked up 5 other units since (a duplex and a three unit). I currently manage all of them myself, and have since my initial purchase in mid 2013. 

I have a 9 to 5 still, as a Software Engineer Specialist. I'm working towards being able to quit, once I replace a sufficient portion of my income with rental income. 

Lately I've been exploring many different avenues of real estate investment. I've taken crash courses on tax deed sales, foreclosures, and preforclosures in the last few months. I also am actively looking for another larger purchase (to me that means 10 plus units). 

So far I've really enjoyed the information I've found on here. I've been listening to Kevin Bupp's most excellent podcast for the last several months, pretty much non stop, and it was at his direction that I finally came over to check things out here. I'm glad I did!

[Johnny Hastings]

Sure. The 12 unit is Mosinee. It's a great location, but was in rough shape when I picked it up. Mostly that was a people issue, versus a building issue (it was constructed in 2012). I picked it up for $420K, and it cash flowed almost $2K / month right away. 

There was a bunch of deferred maintenance issues, but nothing major (broken doors, knobs, coin op laundry machines, and other simple stuff). There were also a few weird issues (ceiling / wall mold on 3rd floor, apparently insufficient hot water), that I was able to investigate and figure out myself. The rents were also really low: they were around $450 on average, where as I have them at $625 now. 

The main part of the turn around, and the main learning point for me as the manager, was the people. I started doing detailed back ground checks, calling references, and not allowing felonies or evictions; the management has been so much easier! The previous owner didn't really have many qualifications to get it, just first month's rent and the security deposit.