All Forum Posts by: Doug Anderson

Quote from @Gabriel Williams:

Been listening to BP for several years and I’m currently working on our 5th deal. I buy and hold and do short term rentals and mid term rentals.

Located in Racine Wisconsin 

 @Gabriel Williams Congrats on your portfolio. Do you have success with your medium term rentals in Racine? I have 23 properties in Kenosha and earlier this year purchased two duplexes in Racine. The market in Racine is much different than Kenosha and we have been having a hard time getting quality tenant applicants. Also rents seem to be less in Racine than in Kenosha. We are thinking about furnishing one of the Racine duplexes and listing it as a MTR to maximize our investment and get a higher cash flow. 

Are you looking at fully furnishing the home? That might be the best option for short term rentals. However, some towns do not allow for rentals less than 30 days (Vernon Hills, Mundelein and I believe Libertyville). Also be prepared to have to sit thru a 6 hour landlord course if you want to rent in Mundelein or Round Lake Beach. I have a rental in Gurnee and another one in Grayslake and both have been great rentals. There are always military families looking in those towns. I don't know about short term though, we usually rent them out for 2-3 year leases at a time as that is normally their orders to be at Great Lakes.

@Drew Gedemer It was dated and needed a cosmetic update. I have been buying quite a few properties in Kenosha as well.

@Tom Horwitz I agree with @Trevor Fritz and put down 5% and save the rest for your next purchase. Purchase the 1st, fix it up a little while you live in it and then after a year rent it out. Then purchase your next one with 5% down and live in that one. While the returns might not be as great if you had more equity. Money is really cheap and you can accumulate a few properties with little down payment by living in them.

Hey Jennifer, I grew up and still currently live in Libertyville, IL. My suggestion is to start with something small. My first property was a $155k house up in Kenosha WI and then my second was in Waukegan. 10 years ago I picked up a small 2 bed, 1 bath house in Waukegan for $56,000 and rented it for $900. The current rent is around $1100 but the same tenant has been in the house and always paid on time so I have only raised his rent up to $950. As you purchase more properties you get more confidence. The biggest issue I have is finding "good" contractors to do work. This year alone I have gone thru 8 of them. Another suggestion is stick with your criteria and wait for a property to come on the market that fits your criteria (1% rule, certain cash on cash return, etc). Over the years I have stuck with my criteria and now up to 43 doors. If you don't have w-2 income, you might want to reach out to local banks and credit unions that do portfolio real estate loans. They have different standards then if you go thur a traditional lender for a 25% fannie/freddie loan. Feel free to reach out if you have any other questions. 

Investment Info:

Single-family residence buy & hold investment in Grayslake.

Purchase price: $85,000
Cash invested: $60,000

1920's Single Family Home within walking distance to Downtown Grayslake. Home was updated to fit in the character of the style and age of the home.

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

Location, Style of Home

How did you find this deal and how did you negotiate it?

Found the deal on the MLS but the seller wanted $115,000 took over 4 months to negotiate to get it for $85,000.

How did you finance this deal?

Traditional Financing. Cash for Improvements.

What was the outcome?

Completed BRRR strategy. Bought, Renovated, Rented and Refinanced.