1803 Fayette Avenue Beloit WI - 2% Deal!

[Scott Sklare]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,500
Cash invested: $14,000

Beautiful 3 bedroom home with much to offer! Wonderful updated kitchen comes complete with stove, refrigerator and dishwasher. Formal dining room is open to the living room making it great for entertaining. Enjoy the natural light from the large main floor windows. 3 season porch for relaxing! Many updates in the last few years including roof, water heater, furnace and central air. Many updated windows. Fenced yard. 1 car detached garage. All this in a convenient east side location.

What made you interested in investing in this type of deal?

I was the broker on the buyer's side. Very nice home that we knew would rent for $1200 per month

How did you find this deal and how did you negotiate it?

We found this on the Multiple Listing Servivce (MLS). We negotiated based on our knowledge of the market, the inspection report, and quantified items that needed repair or replace.

How did you finance this deal?

We were the broker, our client worked with a local community bank that is very bullish on our business nice.

How did you add value to the deal?

We find, analyze, help navigate the financing, take care of the repairs, then we found a tenant to rent the house for $1200 per month.

What was the outcome?

Outstanding! 2% rent to purchase price

Lessons learned? Challenges?

hard work pays off.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes.

[Jack Medford]

@Alex Price I'm originally from Long Beach but moved to Wisconsin about 2 years ago. I can confirm that Wisconsin has nice numbers. I personally invest in Milwaukee due to the great rent to price ratio, plus the huge stock of multi-family properties. It can be a great place to invest, but you have to be very careful where you buy. 

Beloit has some nice inventory as well, but it is much more of a  small town situation that Milwaukee. Not a lot of options for property management, for instance. Be very careful of anyone selling you returns that seem a little too good to be true. Returns can be very good here in Wisconsin, but the same principles still apply. If it sounds too good to be true it probably is. 

Lastly I'll mention Madison. Not a great city for cash flow, but the best option in Wisconsin for appreciation. The surrounding areas are growing a lot, and many are being pushed out into the towns surrounding Madison, such a Verona, Fitchburg, Sun Prairie, Mount Horeb, etc. Madison is probably the best option for long term wealth building, but worst for short term cash flow.