All Forum Posts by: Chris Bruni

I'd likely run from this one.  In my experience, when a pototential tenant hides an applicant - husband, friend, signficant other, whoever - they are doing it because they have been shot down before for something in their background.  If there is something to hide, you don't want to be the one to find out what that is after they are in your place.

I like this discussion.  As I have navigated my own real estate journey over the past 20 years it changed to not replace the income I had, but to determine the income I actually needed for the lifestyle I wanted.  

5 months ago I "retired" from my W-2 job after turning 53 years old.  I have 20 rental properties, some paid for and some still mortgaged, but all supplying positive cash flow every month - enough for a very comfortable life.  I have other investments beyond real estate in more traditional vehicles for retirement and I expect those to continue to grow modestly for the next 10 years or more before I decide to use them.

I should also mention that, for me, its never been about sitting back and doing nothing, but more about doing what I truly love.  I really do love to rehab properties... myself.  I am a licensed contractor and can do most of the work so my expenses stay low.  Today I am able to outsource my skills to help others and, while the little bit of extra income from that is nice, its not something we are relying on to make ends meet.  Cash flow is taking care of that.

So, back to the original post.  I do agree that many will not replace all income with cash flow.  But do you really need to replace it all?  

Cheapest I ever bought was for $14K.  Rennovated for almost $100K.  Been a tremendous rental for the past 5 years.  Valued at $170K today.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $40,000

This is a run-down property that I recently purchased. Will convert it from a 2 bed, 1 bath to a 3 bed, 2 bath and (hopefully) re-sell later this year. After repair value estimated at $175K. Repair budget is $53K.

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

I've had good success with these in the past and now that I have left my W-2 job I have the time to complete this while managing my rental businesses.

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

This deal came to me through a local wholesaler I follow.

How did you add value to the deal?

I will completely overhaul this property and expand it creatively while not changing the footprint.

What was the outcome?

Pending.. I just bought it and it will take several months to complete.

Lessons learned? Challenges?

Awfully cold in Wisconsin right now and I have no working heat in this property.

No problem getting 20-25 year loans, but usually fixed period of rate is 5-10 years.  

My opinion... just avoid the winter months if you can.  All of my leases end between April 1 and October 1.  I try to not have too many in any one month just in case there is some turnover.  I also try to have variety in sizes available just in case one tenant wants to move up or down in size.  Have had some success in retaining good tenants that way.

I've participated in both the REIA in Madison and the Baraboo group. Now that I live in Columbia County, I'd be happy to participate in yours if you want to be more toward Beaver Dam.

Thanks for the help.  Keep me posted on the duplexes you find.  That's the type of investment property I usually like.

Thanks for the additional insight, everyone.  I have been trying to get the problem tenant out.  Have offered to let her out of the lease & return of cash.  She knows the system and is playing the game.  

Yes.  Thank you, Mark.  I have sent them the 5 day notice.  Waiting for that to get completed before I can file in small claims.