All Forum Posts by: Demetrius Lindsey

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $135,000
Cash invested: $46,000

This was a great deal that I picked up from a retiring investor. It is a 3 family property with a duplex in the front and a small single-family in the back. The house came with a buildable lot. This building is within walking distance of a hospital, college campus, and NBA arena. The rents are low compared to what they could be. With refreshed units, we could get rents up to $3,700 a month.

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

It was a good opportunity deal from a retiring investor.

I live and invest in the Milwaukee area and love everything about it. 

If you are in a pickle and the deal is that good. Maybe consider selling it and moving up. For a partner with good backing. 

[Update] Some lessons learned our latest BRRR.

Location: Milwaukee

Purchase Price:$75k

Rehab: $6k

ARV: $115-124k (comps with light rehab)

Rent: $1,100

Bank used for refi: Pentagon Federal 

Interest Rate: 3.375%

Neighborhood: B-This property needed very little work to it. Floors, a little paint, new water heater, refresh in the bath not much. We started the refinance process two weeks after we closed. With in 48hrs of having it listed for rent we had over 100 inquires. We got a very good screened tenant on a 18 month lease that goes to $1200 after 6 months. Here's the lesson all comps are not equal in the eyes of an appraisal. 

APPRAISAL KILLER: NO BASEMENT!!!!!

Our appraiser refused to look at any comp with a basement. Rather than put a value on it he refused to looked at them. There was a recent sale a block away on the same street for $124k smaller square footage similar finishing's etc. This comp was apart of our analysis to make an offer. The appraisal had comps from Neighborhoods outside of the radius which greatly decreased the valuation. Milwaukee has some big differences in Neighborhoods depending on where you go. After speaking with the appraiser this is common practice we spent an hour on the phone and I got a lot of insight I wish I had going into the deal. But that's how we learn. We also got dinged because of the short seasoning period. If waited to get spring to the refinance we probably would have been able to pull more out. 

Appraisal Valuation:$85k 

Loan amount: $63k

Monthly cash flow: $469

Coc Return: 31% 

We learned and the cash flow makes it a good deal. On to the next scheduled for a January close.

Hey BP Family!

So I have a decent size Triplex in a great B neighborhood close to a lot of shopping a private college.

I'm looking to maximize this property's space. There is a detached 3 car garage on the property. I want to convert this into living space. Potentially add a level or take two bays and convert them.

The property is zoned for multifamily up to 4 units and we only have 3 currently. Reaching out to get some advice on a project like this. Also, has anyone done this in Milwaukee Wi before not sure about building a garage out? Cost to a project like this. One point of reference I know I can get a min $850 a month for a studio that is completely rehabbed in my neighborhood.

The end strategy is either an AIRBNB or long term rental.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I can say that @Marcus Auerbach has indirectly helped me not purchase in some of those war zone neighborhoods. I bought my first property in Milwaukee 4 months ago. I am so happy that I went for higher end and bought a property that commands top rent and will appreciate over time.  Dollars>Doors 

Use other people's experience!

@Willie James For sure agree with that. I want to make sure everything is on the table. I guess I'm looking for he the logistics side of it. Do I form an LLC, how do banks look at money deposited in my account, profit sharing etc. Looking for a gamplan on how to build this.

So I have done a few deals nothing of major note. But lately, I have had several friends and family members saying they would like to invest with me on deals. The biggest one is my dad who wants to give me $100k to invest. Just curious to know who out there has had success with working with friends and family and how they create value.