All Forum Posts by: Dean Wells

@Daniel Kitt. I am a newer investor in the Racine area. I am filling my first BRRRR this month.

I am finishing my first BRRRR in Racine. Racine has a lot of properties that are in need of large rehabs, but the city is growing and improving. I don't think that it is great for market for fix and flip, but that is not my focus.

I am currently in the process of rehabbing a former slum duplex.  The previous owner got it from auction with the intent of house hacking it, he owned it for five years and never got past the lower livingroom. He allowd the roof to leak for years and just shut off the rooms that had water damage, both upstairs and downstairs. 

I got the property for what he owed in unpaid taxes and a lean on the house.  My mistake was self financing the rehab, and trying to do all the work myself, after my day job.

Get good estimates from good local contractors.   Assume any least one large miss when estimating.  

If you have a good plan, and your numbers are good, don't be afraid of hard money lenders for the construction funds.

I have seen two approaches,

1) rehab to a better level, everything works, and fill the units to get cash flow.  Plan larger rehabs later as units turn to get the rents higher.

2) do the bigger rehab right away to maximize rents in your neighborhood.

Get your units rented and refinance out to pay off the hard money lender.

then repeat. 

I am working on my first BRRRR in Racine. Racine has its rougher neighborhoods, but they are trying to clean it up. Twenty years ago, Kenosha had a lot lower crime rate, but now, I think it evening out.

There is a lot of business moving into the area, and it looks like (prior to Covid) the area has a lot of income growth potential.   

Once I recover from my numerous newbie mistakes, I plan on  buying many more in Racine.

@Kyle Olsen, no problem, I actually found it on Zillow, as an inactive listing. It was listed on the MLS, but was not coming up on searches correctly. It had been listed for over a year, and had gotten a rep. The owner lived there, and was verbally abusive to the realtors and people looking at the duplex. The place was border line should have been condemned and scarred away anyone not offended by the owner.

I am working on my first BRRR in Racine. Racine is growing and I think it has a lot of potential.

Has anyone used A Z loan Services out of California?  They are making claims that seem too good to be true.

Thanks

Jason, I drive by the building site several times a week.   They keep announcing more partnerships with local schools, businesses, and buying more properties for technology development centers.  Even if they don't meet their estimated 13,000 direct hire jobs @ $56000 a year plus benefits, plus 7,000 supplier jobs, half that many jobs in Racine will make a huge improvement in the local economy.     

Thank you, Rebecca and Brock, I will check out this months meeting.

I find it interesting how people from different states reply. Wisconsin is a gun friendly state. In Wisconsin, they would be yours to do with as you please. I would take photos of the serial numbers and check with the local police. In your state, you need to check if it is a gun registration state or not. If you live in a registration state, most sporting goods stores that sell guns will be able to help you out. In a gun friendly state, find a local gun club, have someone there help you shoot them, then decide if you are going to sell them. As for the ammo, if it is factory ammo, and looks like it has stayed dry, it is good for decades, again, have someone from your local gun club look at it.