Duplex purchased in 2018

[Adam Briceland]

Investment Info:

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

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

This was the first true rental property.

I knew the size, current rents, off street parking with garage and older character were what I was looking for. I will sit on my laptop with google docs sheets and redfin app on my phone, pick properties and analyze numbers. I do this whenever I get the itch that I should check out the market and maybe pursue buying another property. I use this as a way to prepare myself so I know what numbers I'm looking for.

After I analyze a deal that peeks my interest. I'll drive by the property to look at it and the neighborhood. This is another step I use to help weed through the properties and pick a very good property. I'll drive by property first and then drive the neighborhood. No need spending any extra time if your first impressions tell your gut "NO." I'm a big believe of if you can't see yourself living there, you shouldn't expect tenants to.

I'll park on the other side of the street of the property so I can get a good view of it. This is only if I feel it's worth another look. I'll roll my window down and turn my vehicle off so I can listen to the noises of the area and try to smell the air. Is there anything I as an owner wouldn't like about this property or this neighborhood? What would your to be tenants think? It's more than just making money and using people for your profits (because isn't that what corporate america does and aren't we all trying to ditch that? Or is that just all talk and really we are just as greedy).

To my surprise the property looked well taken care of and the neighborhood was quite, I mean the neighbors across the street are a large cemetery. I let the agent I work with know I'd like to walk this property, I think she got us in the next day. This was in the spring of 2018, right before things got crazy in Milwaukee. The agent let me know there were 8 showings scheduled the next day. So if I was interested I needed to offer full asking. (This is why it's Important to know your numbers, can you offer asking or go above if needed to? If you go above asking what will rents need to be? If you have to have your business partner commit more than anticipated, what will his return now look like? ALWAYS KNOW YOUR NUMBERS, don't be naive and cheat them to work. It either works or it doesn't and move on. If you force the numbers to work, you will get into trouble.)

During the buying/closing process I'll continue driving by the property at random times during the week and weekends. Drive the neighborhood with my window down, I'll park on random streets in the neighborhood turn off my vehicle and put the windows down. You don't want turnovers every time your lease comes up because of the area you bought in (you are looking at 30 plus years of ownership to the area).

Its been a very good property, had some minor issues to be fixed which happens when you buy someone else's property. There's usually a reason they are selling it. The existing tenants were easy to communicate with, the lower's actually let me know a few hours after signing the paperwork at closing that they would be moving out in two weeks (no previous heads up during the buying/closing process). The uppers moved out two months later. So there was some added stress/pressure to find new tenants since you have the bank to pay back and the terms you agreed upon with your business partner for their payback. But for some reason that makes it fun for me.

Fortunately for me in just over a week after the lower's moved out I had new tenants under contract. The upper took a little longer to get rented, think 3-4 weeks after the old tenants moved out. Currently I have it fully rented with long term tenants renewed in 2021 and with on time payments during the virus outbreak.