All Forum Posts by: Bob Crane

Quote from @Jesse Turner:

Hi @Bob Crane, you mentioned two different lakes on different sides of Madison.

It looks like the Delavan sub-market has quite a few active listings for its size. It ranks highly for investability (cost to enter the market) but poorly for current rent demand as well as seasonality:

If you're asking about Lake Delton, that sub-market fairs much better in a few areas:

If you DM me more about the subject property you're looking at I can give you better comps that would be a better indicator of whether or not the specific property is a good investment.

 Thank you,  I sent you a DM.

Hi,

I’m  considering investing in a single family near lake Delton with lake rights.  I wanted to know from other investors if anyone is having success in this location.

 Adam, can you provide what key data you are seeing that tells you str is saturated?

I know two people that own on "Big Green" (Green Lake). It is a super popular lake for sport fishing and water sports. For those two reasons alone their STR"s book the entire summer season. The folks I know have lake access properties that puts them in high demand. But even the off-lake properties rent consistently.

As has been said - Green lake is a summer only investment.  You don't get the winter sports like you do further north and there are no other amenities.

As I've looked I've not been able to make the numbers work to purchase an STR in Greenlake.  Those I know that are making it had purchased their homes 5-10 years ago.

An update - 
I moved the tenants out at the first of May and brought in someone to remodel interior (lots of lipstick with most work in bathroom).

With capital and holding costs I have $65k in the property.

Realtor just listed this AM for $119,900. 

Purchased a home last fall. Here are the details:

• Home – SFH 2/1 1200 sq ft.
• Purchase price - $27k paid cash
• Repairs to date - $24k in repairs from hard money loan.
• Current rent – Occupied when I acquired. Long term tenant paying $550 a month. Rent should be $700.

I’m looking for advice on three options –

1. Make it a 3/1 and sell it. This option would require an additional $5k goes into the house bringing my all in to $56k. In this market I should get $90k. Use proceeds (plus cash I had in) to go after next property.
2. Make it a 3/1 BRRR to get my cash out and pay off the hard money loan. Then rent for $850 per month. After expenses I'd be bringing in $125 per month.
3. Leave the house as is. Needs $2k-$3k in additional repairs. Refi to pay off lender and get some money out of it. Then tell current renters I need to move them to $700 per month.

The town is in central Illinois – an area which historically sees very low appreciation.   

Was hoping to make this when work had other plans.  Is there a way to hear about the banter or a video of the discussion?

Been watching with my son. We know Chicago neighborhoods well (as locals, not REI), so watching them and seeing what people are looking for is fun.

I also like that many of the struggles (including the personality/goal conflicts with the partners) seem genuine.  I'm tired of the HGTV formula with the staged problems and conflict.  Nice to see real issues.

Of course these two are working at a level many will never reach.