All Forum Posts by: Tim A.

Hello,

I met someone who is finally willing to sell me their duplex.  The property is in wonderful condition with new windows, furnaces, hot water heaters, windows, electrical, and other odds and ends.  I am currently out of the country and we decided that we would talk more when I got back, but the general numbers that we are talking about is that he would sell me his property for 95K and that he would be allowed to live in the unit that he is currently living in for $700 a month.  Market rent would be for about $750 but he has agreed to take care of landscaping and snow removal.  Taxes on the property are $2780 and it is located in the northwest side of Milwaukee.  Its a pretty decent neighborhood on the south side of the intersection of 76th and Capitol.  I would plan on renting the other unit for $750 and both tenants would be required to pay for all utilities, including water.  Which brings me to the following questions:

Considering that all of my other properties are single families, does this seem like a decent deal to you?

Are there any concerns that I need to be aware of from allowing the seller to continue to live in the property?

How much does it generally cost to have a lawyer handle the transfer of the property, opposed to working through a real estate agent?

Thanks in advance,

Tim

I just spoke to Eric Trost and he quoted me $650 to review last years taxes and to submit for 2016. Does this sound high to the rest of you?

Thank you all!  There are definitely some good leads here that I will need to look into.

Tim

Hello,

Last year I went to an accountant that someone else I knew had worked with and his reviews seemed to check out online.  Unfortunately, he clearly didn't know much about income properties and overlooked a lot of things that I even knew were deductions.  Does anyone have a good CPA that they've been working with that knows how to handle income properties in the Milwaukee/Wauwatosa area?

Thanks in advance,

Tim

it's a three bedroom located close to Burleigh and 76th.  How many inquiries are typical when it is priced at going market rate? 

Next week I am closing on a three bedroom one bath home in Milwaukee. Although I should have done this sooner, I would appreciate any feedback that you might have on this by and hold property. 

I am buying the house for 86k and the taxes are around $2400 a year. I posted the house on Craigslist already and had 40+ inquiries within the first 36 hours with an advertised rent of $1275. Tenants are responsible for lawn and snow so there won't be any costs associated with that. Outside of some minor cosmetic repairs it is pretty much a turn key home. 

Is this a deal that fits within your peramiters? In comparing the SFR cash flow to the numbers that I've briefly looked at for multi families, it doesn't seem like they are producing that much more. Is this an issue that others have seen in Milwaukee or am I just that ignorant/naive?

Thanks!

Thanks for taking the initiative one this one, Nicole.  I have been looking forward to one of these for a while.  See you there!

Tim

The loan officers justification for the lifetime PMI was that my down payment was too small at just 5%. Considering that I would be planning to move into the property itself, it looks like I should qualify for the PMI to eventually drop off on the FHA, even at the 5%. That's odd though because I reached out to two separate mortgage officers and they both told me the same thing; apparently I need to shop around a little more.

I understand that this should sometimes be factored in as the cost to play but consistently after factoring in the water, PMI, lawn/snow potentially, etc., I just couldn't justify it in comparison to a conventional loan on a single family.

A few months ago I purchased my second single family and a, excited to continue acquiring properties. Initially when I started out I was only pursuing duplexes. However, several mortgage officers told me that I would only qualify for an FHA loan on a Multifamily and that the new FHA rules never drop off the PMI. All the numbers that I ran here in milwaukee couldn't justify buying a duplex over a SFH. Are other investors having these same issues? Have you found a way to work around this?

Hello,

I 2nd what Tyler said; I too would appreciate if someone could post the milwaukee meet up site.  It would be great to meet up with some other like minded people.

Thanks!