All Forum Posts by: David Butler

I found a 32 unit apartment complex (16-1/1--$500/month and 16-2/1-$550/month) that is enrolled in the USDA Rural Development Low Income Housing Program until 2035.  The complex is listed for $675,000 and this price comes from each apartment being valued at $90,000X32=$2.8 million discounted 76% for the number of years in the program.  Buyers will assume a 100K loan and must bring the remaining $575K to closing in cash as no additional loans can encumber the property.  Here is the kicker:  The complex needs to be managed by a USDA approved property management company who collects all rents, performs maintenance and upgrades and in general runs the property.  Owners will collect $3,925 each year--thats it.  This return is .68%--you can more than that in a money market account.  I am assuming the carrot is that you will get the property in 2035 that will be worth is market value then and in essence paid $675K for that but made nothing in the meantime.  Does anyone know about this program and could explain it?  What would have this deal looked like day 1?

Good luck Adam.

You might consider Powers Lake (which has multiple lakes) or look to Linn Township or Lyons Township--anywhere outside of LG proper.  You do not have to get far outside of town to get outside of the city limits.  The Grand Geneva on 50 is in Lyons Township.  If you want a lake, look to the Powers Lake area which may be either Burlington or Bloomfield Township (Genoa City mailing address) or if you want to stick to Lake Geneva, look towards Lyons or Linn Township but parking when going to town in the summer is the issue.  My two cents and probably worth what you paid for it...

Hi @Chauna River Gibbs.  I live just outside of Lake Geneva and can tell you that the city does not like AirBnB.  It use to be the wild west a couple of years ago but not they have tightened up rules, fees, inspections and the actual area that it is allowed.  You are reading this correct, Lake Geneva is not super friendly to short term rentals in my experience.

Will do.  Good luck.

Hey Annie.  What can I help you with?  Are you looking for places to rent for clients, looking for houses for clients, looking for fix ups for investors, etc?  Not sure if there is anything that I can help you with but will never know if I don't ask.

Hey @Kelsey Jorissen this feed popped up and I see it was from years ago.  I am curious, what have you been up to in the past 7 years?  I live in Lake Geneva and love the area and would love to hear if you have done anything around here.

It sounds like you are looking at more of a buy and hold mentality and those can be a little tougher. My wife and I own our own rentals as does my partner separate from one another but we do own a 4 plex in Lake Geneva together that had tons of deferred maintenance and super low rents. We have been dumping all of the rents right back into the property and neither of us has taken any money and have had to put a tiny bit in. It all comes down to what you have agreed to with your partner. Dave Ramsey calls them the D's: death, divorce, disinterest, drugs--what happens to you and your partner if one of these comes about. These all have to be ironed out before entering the partnership. All goes back to communication again.

Hi Adam.  I, too, am in the Lake Geneva area.  I have some rentals on the side that is all my wife and I but have a business partner that I have been working with for about 4 years.  My partner is more of the knowledge side--he is a jack of all trades and I bring the money and grunt work while we split the profits of our flips.  This is a nights and weekends job for me and Kevin and I have flipped 10 houses in the last 4 years with 2 more under contract to sell and we are closing on another next week.  The key is communication--you have to agree on a vision and communicate, communicate some more.  If you think you have over communicated, you haven't!  Partners are great, but they need to fill a need that you have that you cannot fill yourself and vice versa.  I don't have the framing, electric and plumbing knowledge and that is what Kevin brings while he does not have the money which is what I bring.  We hold each other accountable and are friends outside of the business.  Your partner has to be someone you like or going to work will be miserable.