All Forum Posts by: Donald D Michna

@Marcus Auerbach is correct. You may be able to find something for less than $120K, but the you would be in a C- or less area and will need significant repairs. Unless you have a Core 4 like @Remington Lyman mentioned, it will be hard to turn the property around in a timely manner. I do agree Milwaukee is a great market to be in, but like most large markets, inventory is low and prices are up. 

I see West Allis and West Milwaukee on the upside for the potential to be the up and coming area. It is know for being a blue collar area, but there has been a lot of investment in the past few years in the area. Take a look at the link below. 

https://www.bizjournals.com/mi...

I also like St. Francis and areas south of Bay View. Bay View still has deals to be made, but the area is very competitive. 

I was at a meetup the other night and a CPA came to speak with us. I spoke to him on an individual level after the meeting about a 1031 exchange that a family member is looking to move from one property to a like kind property. I was planning on partnering with the individual once we purchase the like kind property together. After the meeting he followed up with me and indicated the following “The same person that owns the property given up must receive the replacement property. With both the property given up and the property received, the intent of the property must be to hold by that person and use as an investment, a rental, or in a business. Moving it to another entity, even if for those same reasons, shows your intent was not to hold. The advice is to hold for 12-24 months (2 tax returns), and then intentions change, and it can be contributed to a partnership.” Does this sound accurate? I intend to be apart of the like kind deal but also do not want to make the 1031 exchange null and void. Thanks in advanced.

The property looks nice and with all the work that you did you should receive a nice payday. Depending on the amenities of the property, I am seeing similar properties in Bayview list price around $250K to $300K. Being on a busier street may impact the price a bit, with the property is located in Bayview and with the high demand in the area, I do not think that it will have a big impact on price. More likely the busier street will narrow your buyers pool.

If possible, please share more about the property. What are you expecting for the sale price? Does the property have nice curb appeal? Does the property have a garage? Does the property have a driveway or alleyway?

@Scott Schultz the city of Milwaukee does not allow more than one water meter from the city per unit, this is for all unit including commercial multifamily. I even spoke to the city planner because i thought this was odd but he assured me that each property only has one water meter. The purpose of this is the city does not want to pursue renters if the do not pay their debts. The city will add the water bill to the taxes if not paid. The mechanics behind the install are not a problem, I can perform the install or if I do not have the time I can hire a plumber. The main point to this post is to see if there are any special regulations when billing the tenants via a submeter. 

I am investigating the best way to submeter the water utility at a duplex. Assume minor modifications to the plumbing as the plumbing is essentially separate. From what I understand Wisconsin allows landlords to submeter the water utility and bill the water/sewer to the renters. Obviously I would need to make sure that the water/sewer expenses are detailed in the lease. I plan to use something like truesubmeter.com to help bill the tenants or bill the tenants directly. I still need to look into the details, but this company looks to be a good solution. Are there any regulatory requirements that I need to be aware of?

If anyone can provide any similar companies to truesubmeter, I would appreciate it. Thanks in advanced.

Thanks everyone for your input on this. It is very helpful.

I was speaking to someone about there rental property and they mentioned that if they sell one of their rental properties after they retire or have of income of less than $33k a year that they do not have to pay capital gains on the property. I was doubtful about this but they were adamant that this was true. They stated that it was part of the new tax bill. Has anyone else heard anything about this?

I have not done a BRRRR type of investment yet, but the way I understand this type of structure is that the bank will typically lend on 70% of the after repair value. I though be on the conservative side and say the ARV is $100K. If you were to take the full 70% on the refinance, you would still have $10K in the deal from your total investment. I'm not saying this is bad, just an observation.

I think more information and research is needed into the property and speak with a bank before you do the deal.

 I think more research is needed into comps in the area, $30k is a pretty wide range. 

I have a renter in a property located in Racine, WI, the properties water is provided by Racine Water Utility. The water was never transferred over to their name and the renter is now late on this past quarters water. I have heard in the past that some municipalities require the property owner to be listed to pay the water bill. I am looking into what the requirements are for Racine. What are my options? What have other people done in situations like this?