All Forum Posts by: Derek Steinmetz

Hi Dale, I've never played but always thought it would be fun. Let me know if you are able to get a group together to play in the Milwaukee area. You may want to bring it up at the next Milwaukee Meet Up too.

Thank you both for the feedback. I will check my loan documents tomorrow and update this thread with any interesting details. We had interned to stay in this house for one to two years, and now that is looking like it will be closer to one year in order to move to a different neighborhood for better schools. We can definitely make it through a full year here if necessary I just wasn't sure if the 1 year OO was a general guideline, or official contract provision. Also, if we close on another home before the one year mark, but spend the remaining time renovating the home, and our current property is our actual primary residence during the renovation time, that would be on the up and up, correct?

In July, I moved into a 2 family that we purchased using FHA financing. We are now interested in moving to another area of town. I know you are supposed to owner occupy FHA properties for one year, but I am having a hard time finding details about that requirement, and the potential penalties for moving out a few months early. Does anyone know what the consequences of failing to owner occupy an FHA property for one year?

I will be there too!

Welcome Jason. I hope to see you at the meet up this week.

We had a good experience with a floor guy in our recent duplex. I will PM you contact info. They did a good job and it was very reasonable.

That's a great idea! I also work normal business hours and agree with Dawn that week nights are best. I have a monthly board meeting the Thursday if every month, but other than that, I could probably shuffle things around to get together with local Milwaukee area investors.

Welcome Peter! Fellow Wisconsin investor here. I live and invest in Milwaukee, but I am originally from Port Washington and have been up to Sheboygan many times. I would imagine there are some good deals in Sheboygan. Good luck with your current flip and many more to come.

Welcome from another new Milwaukee investor! It sounds like you have learned a lot on your first couple properties. Which areas of Milwaukee are you hoping to focus on for your buy and hold properties?

My understanding of the 50% rule is that operating expenses (property taxes, insurance, maintenance, vacancy, etc) will equal 50% of your rent. That leaves the other 50% for debt service and cashflow. The typical amount rule of thumb here is $100 per door positive cash flow.

So you would essentially have to solve backwards to figure out how much mortgage you can get with the 50%-$100 that is allocated to debt service.

In order to make those numbers work, you may need to adjust your down payment, so your mortgage balance fits the monthly payment. Using 20-30% down is probably a reasonable place to start, but you have to be comfortable with the amount of leverage.

What you are saying makes though. If you can put down less, and still make your $100 a door, then it is a better deal. But the down payment and debt service don't affect the 50% of operating expenses.