Second deal almost 2 years ago

[Adam Briceland]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Milwaukee.

Purchase price: $159,900
Cash invested: $42,214

2 bedroom, 1 bathroom over 1000 square feet duplex.

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

The area, price, taxes and rents

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

Using Refin app on my cell phone

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Asked for more rent once the old tenants moved out and have slowly improved the property a little each year. I aim for $4,000-$5,000 of expenses on this property a year. This allows for emergencies/repairs and improvements to be made.

What was the outcome?

Rents total 1800, mortgage is just over 950 and the water bill is around 110-120 a month. So after paying my business partner back his share and pay myself $125. I stash the rest away in the a high yield savings account.

Lessons learned? Challenges?

Wisconsin legal blanks is a great place to buy legal paperwork for landlords as well as ask for advice. Spend the money and have what may seem like extra paperwork for your tenants to fill out. So far this has lead to respectable tenants who pay on time, keep the property clean, let me know of potential problems and actually get along with each other.

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

The agent I work with got the seller to pay for a HSA warranty, which came in very helpful for the first year of ownership. Keep in mind when you buy someone else's property you are buying their problems. When I made a claim HSA would contact a contractor in their network for the work needed. This allowed me to figure out who would be good to keep as a future contractor and how I found KWK electrical contractors and Chris the Plumber.