All Forum Posts by: Darren Budahn

Thanks George Blower That’s what I figured

I understand the requirements for a Solo 401k, but are you only able to contribute earnings from the business you have setup? Or can you contribute additional capital from say a savings account to reach the max contribution limits? Also, can you deposit funds that are made out to you personally (as part of earnings from your business)?

If it’s really worth $650k as is, why not sell it immediately and make roughly $180k?

Welcome to BP and congrats on the first purchase. I would suggest adding your photo on your profile. It will help get you more responses IMO. 

What are your goals by investing in Milwaukee?  Buy and Hold? Are you looking to buy below market value and rehab? What kind of neighborhood are you willing to invest in?  Price point?

I was just trying to get some more specifics from you so you can get some productive feedback. There’s a lot of helpful and knowledgeable folks on BP from Milwaukee. 

Feel free to ask about any neighborhoods or properties if you have anything in mind. 

I think your skepticism on finding a good property manager is well warranted. I’m sure there are some good ones out there.  I don’t know of any myself. I would be very hesitant to buy in lower income areas if you aren’t prepared to self manage. Good luck. 

I would first do inspections of the buildings to make sure there are no obvious leaks, running toilets, etc. Maybe implement coin operated washer and dryer as well if that’s feasible.

I have not invested right next to a school. But I would think it would have little effect on the property value, tenant base, etc. If it’s a high crime/blighted area that isn’t going to change regardless. But I suppose it beats buying a house next to the local drug house. Regardless, I’d just check the block you are looking to invest in.

All good suggestions. I would just say that you don’t need to mow the lawn weekly on a rental IMO. Every 2 weeks is good enough.

Your current home does not sound like it will make a good rental. You don’t want to negative cash flow every month. I would sell.

Just google “amortization calculator” and you will find plenty of them. Then just plug in the approximate numbers for interest rate, purchase price, etc

Most lenders will require a seasoning period before they will loan based on ARV. 6 months for most. But if there’s enough equity in the property start calling some lenders. I prefer local lenders versus big national banks. And you only will need 1 Appraisal for the Bank you end up actually using.