All Forum Posts by: Adam Jeske

I'm not sure if I can make this one, but @Kevin Kurt told me about it. I'm keen for them in the future, and might make it for a little while next week. 

Thanks, Kurt--that's some good encouragement for me as I'm getting going up here.

UPDATE: I went to the open house to see the other side. It was little-old-lady nice, not needing renovation. But there were already two offers. I think it's a bit too fast and too early for me, but finding something that was almost right indicated how I need to get a team together quickly to be ready to move next time.  

Thanks, @Paul Haviland and @Marcus Auerbach and everyone--your input is really valuable at this stage. 

Thanks, @Kevin Siedlecki, you're confirming my math. The numbers as I've give you are my very conservative ones, with everything factored on the conservative side. Part of the logic here are a number of safety nets so my first deal doesn't go sideways. Most importantly, I'm erring pretty conservatively on the rent. I actually think it would fill for 1000/mo each side right now, which of course adds another 2400/yr to that COC, so 5.5%. And I think there's an excellent shot at rents rising and also at overall appreciation, given the dynamics of the market here. Good point about lawn and snow. I have been thinking about how to work that into the numbers. (Previous owner worked it into the lease with one of the tenants.)

Hey, thanks for the quick replies. I've got 10% penciled in for CapEx and management, so 2160 each, vacancy of 3% is 650, taxes are 3800, utilities will be 600/yr, insurance is 1000. That's 10370 or so (I have the vacancy in here). Gross rent (if fully rented) is 21600/yr.

I'm working off of 25% down (54K) and 5% over 30 years, for a payment of 865/mo. I've penciled in 2K for closing costs and 2K for renovations on the unrenovated side I've not seen yet. (I don't think it needs major work.)

@Kevin Siedlecki, I'm off to read your piece--thanks!

Alright, stuff is getting real...

Just outside Madison, WI (good job market with big university, government, and growth, low vacancy), in a small town that has vacancy of under 2% and fantastic schools. My kids are in this district, and I think it's going to stay strong, with both rental and price appreciation for several years, at least.

Not many multi-family properties in the town.

The deal is 215K for a 3 bed, 1.5 bath duplex, with one half just renovated like new. There is no garage and no basement, but lots of good closet space and a laundry/utility room with some storage. There's no garage, which is a bummer in Wisconsin, but also not that uncommon. It has a nice yard and backs to a park. Central air. Not sure about the age of the AC but the water heater (gas) and the furnace (gas) are old--1994.

The owners inherited it and want to move it. It just went on the market, but their agent says they have a lot of interest.

Asking price is 215K. I'm expecting 220K after closing costs and a bit of renovation on the side that's not been done.

The unrenovated identical duplex next door rents for 900, but that also has a 1-car garage.

There's an open house today.

I should not have a problem with the down payment and the financing. I'm happy with the return, and this feels like a safe way to start my portfolio.

Thoughts? What else do you need to know?

Thanks!