All Forum Posts by: Brad Pietrzak

I was thinking starting in west allis with a houshack what do you think of that neighborhood? I've heard west allis is a pretty working class c area. It mentions you are a wholesaler as well for Milwaukee I'm still in my saving process at about 45k right now probably hit 50k by the end of the month working up to just buy cash do you mind if we keep in contact so when I'm ready I can check to see if you have anything or found anything in areas I'm looking at?

I'm asking because I notice property prices are pretty affordable. but the property taxes can be attrocous in some areas of Milwaukee and it's suburbs. so I was wondering if that changes this rule of thumb for evaluating a deal or not. would it matter if I manage my propertys my self. I just moved to Milwaukee so I am still learning alot

not 25 cash on cash my bad it's about 25 percent total return when counting for equity pay down still really good about 15 cash on cash

property is a duplex with a attic studio. now the attic studio has a separate entrance but no fire escape so that is a liability. however I will be house hacking and living in the attic and can't sue myself lol. The units seem extremely well kept from a first perspective a very well taken care of property it has off street parking and 3 parking slabs in the back. each unit is 2 bedroom 1 bath. avarage rent in the area I've seen 725 and 950 I've looked on centimeter and 800 850 is about avarage. We have about 40k to put down they want 158500. I to be honest don't know if that price is ok my numbers work out great but I am a noob and could very well have numbers wrong. I know normal duplexes in the area sell for 30k less then this but most of them look like they are in need of updates pretty seriously. this looks like it would attract very nice tenants with proper screening granet counter tops excetera. So with me living in the studio I wrote the rents as 850 each so 1700 total my morgage would be around 619 Now taxes are absolutly atrocious in this area 486 ouch insurance I put as 1000 a year not sure if that would be accurate need help there.so about 560 total between the two. I put cap ex at 1000 per door a year ball parking it so 160 a month I am not including the studio in these evaluations because I will live there maitnance as 85 a month vacancy of 160 a month So over all looks like this so far. 40k down price 158500 rents 1700 month tax and insurance 560month cap ex 170 month maitnance 85 month vacancy 160 month all together 975 a month subtract that from both units rent And there is 725 left over enough to cover the principle and interest and leave like 100 bucks left over for my utility's and such. current owner says the coin laundry downstairs covers the water and tenants take care of there electric and such Now just 100 left over isn't much only 1200 a year not a very good return on 40k but when I move out and instal a fire escape in the studio as I live there I can rent that for another 550. after I adjusted the numbers for the studio this deal looks really good because I am able to keep pretty much everything the studio would produce. I'd get like 6k a year and get a 25 percent cash on cash which sounds as delicious as it can get. It is in a working c class class area. on the worse side of it. that's were most of the duplexes in the area are to be honest. I currently live in a D minus area were I have to watch my back just to get in my car. this new area is not the ghetto allready a big improvement for my personal living circumstances. do these numbers add up to any of you guys? Or am I getting some things wrong. be harsh here that 40k is almost everything we got savings wise. we will have a 5k emergency fund after this. and the current tenant leases are up so I would have to start fresh tenant wise maybe hire property managment and just pay out of pocket for them It looks good from a newbes eyes but I want to hear from the pros

just submitted an app and answered the questions excited! I really appreciate the connection!

thanks I appreciate it. to be honest I really love milwaukee so far. Yea it does seem like there is more crime then mn were I was before but the lake reminds me oh so much of the ocean when I was in the service and is so beutiful I really hope I can meet some good people and settle down here

howdy bigger pockets long time Midwesterner here. just moved to Milwaukee a few months ago starting school at msoe pretty soon. I'm looking to meet some landlords here and understanding more about the market. I wouldn't mind being a extra hand for some rehabs over some weekends as well to kindof help out and learn the roped s of how it can be done. I'm not sure if that could continue after this fall however I will be swamped with school with a very hard degree. I'd love to chat someone up sometime! even just to hear your story and how you became successful.

don't break the rules bend them. bending the rules will save your *** when it comes to profitability.

I think there are two valid points here. If you want to grow the business and your wealth faster use leverage. it can add more risk but you will get a better return in the majority of places. If your goal is to retire with as little passivity as possible don't get all caught up in the hype of you need a good return that's important yes but it isn't your primary goal in that sense it is stable income for as little work as possible. high dollar hours vs smaller dollar hours. If you have 10 paid off duplexes that cashflow 16000 a month and net 8000 that is a hell of alot less work then 40 leveraged duplexes that provide the same income just better returns in potential appreciation and better equity pay down. in one case you make 6 figures with probably 10 hours of work a week most likely alot less if you are good at managing and selecting tenants and in the other case you would work 4 times as much for the same income soaking up all that valuable time you could spend with family or other activity your like(passion hobby ect.) bottom line choose what brings you closer to your goal. make sure you protect yourself legally people who don't work hard to build wealth want to take it from those who do out of pettiness alot of times. but if your a straight and narrow landlord you should worry to much about that but protect yourself non the less.

we save about 4k a month right now by buying the condo with cash that only drops to 3.5k by buying the duplex with a the it would drop to like 3k