Looking to connect with Milwaukee investors!

[Kevin Klaas]

Hello Milwaukee investors!

I am currently under contract on a 3/3 duplex in Nash Park. I plan on house hacking and then moving out in a year and repeating the process. Would love to connect with others in Milwaukee. 

I've been in analysis paralysis for a year and finally made the leap of faith. I hope that I can help others by sharing my story. Feel free to reach out with questions.

Here is the breakdown of the numbers: 

Purchase price: 

$210,000 - 3/3 duplex in Nash Park (off-market deal). Light cosmetic rehab (paint, flooring). 

Loan: 

0% down @3.75% fixed for 5 yrs and then variable for remaining 25yrs up to max of 9.75% - new professionals program loan w/ local lender. Plan on refinancing before variable rate kicks in after 5 years. 

Closing costs:

Approximately $5,000 but negotiated a seller credit of $2,500

Rent: 

Current units are being rented at $875 & $850. Hoping to rent both 3BR units @$1,000 after light rehab (paint & flooring)

Expenses: 

PITI: $1370/mo
Vacancy: 5% of monthly rents
Maintenance: 5% of monthly rents
CapEx: 12% of monthly rents
Utilities: $0 - plan on passing water onto the tenants. 

 
COC ROI: 

25% w/ conservative estimate of rents being @ $1900 total (950/unit). 

Cash flow: 

$150/mo @ $1900 total rents