All Forum Posts by: Edgar Perez

@Robert Brown I also take the slow and steady save and pay approach with conventional bank lending and what helped me was refinancing into the name of the business so I was able to remove the debt on my personal credit report which made me more lendable. 

I am looking through your post and unless I missed it, I can't identify the specific challenge or goal. are you having trouble getting more loans, is it you don't have enough for down payment for next property, are you looking to grow but not too fast? There are different approaches based on your needs; if like me you have enough for down payment but Debt-To-Income DTI was to high (and mortgages are held in personal name) a refi to a commercial loan is a simple process and you don't have to take on anymore debt on that property, if its saving up for down payment is the concern then a cash out refi or HELOC might be a good route for you. If you are purchasing only investment properties consider looking into Associated Bank, Educators and TruStone, because they are local they may have lower down payment requirements. 15-20%

On the Refi Rates there shouldn't be too much change in your repayment amount, if we are only changing percentage on a 150k with 25% down 3%, and we change to 4% and everything else the same mortgage goes up about $60 a month

Additionally, your first duplex in 2020 you have lived there over a year so you can get a low down payment and low interest rate loan on an owner occupied 2-4 unit whether that is through an in house bank/credit union product or the FHA program

Im open to any questions you may have.

I am in South East Wisconsin and there have been a few tiny homes coming up in my market that have peaked my interest.  Now I don't mean the cute custom built tiny homes that became real popular over the last couple years.  I am referring to traditionally built homes with basement/slab/crawl space foundation that were just built small 400 - 600 sq ft.  Some have more lot space than others more often than not they do not have a garage.  3 rooms plus bath (living, bed and kitchen).  These homes are generally being marketed 20-50k (neighborhood dependent) less than say a 2bed 1 bath 800-1000 sq ft home with yard and garage.  

Who here specializes or has experience with these types of homes?

My initial thoughts/questions:

• I would consider Airbnb, we are by no means a tourist area but we do have our visitors and our location and distance to both Milwaukee and Chicago lends itself to potential business travel. Short term rental is not my expertise and understand it may not be as passive as traditional rental; I'd like to give STR a try but if it doesn't work I wonder what the potential for long term is?
• I have long term buy and holds  and average a  1bed 1bath apartment will rent between 675-725 in my area could I expect more in rent because its a house?
• Is there a particular target demographic for these types of homes?  Especially on homes with less than 500sq ft.
• I find 1 bed apartments have more frequent turnover should I expect the same on these home?

Additionally being in the midwest should I be aware of anything in particular when looking at homes with a crawl space instead of basement or slab? 

What else should I factor in with these niche homes?  Am I being too optimistic with the potential here?  

Thanks you are always helpful

-Edgar 

Thank you all, you have been very helpful in your responses.  First things first it is time to review the lease.  My property management company abruptly closed down so I am in-between agencies and want to be prepared.  Again thank you

Hi there,

I am in Wisconsin and have a Quad where I'd like to set some guidelines specific to winter for the tenants.  

Some details:

2Upper/2lower, (2)studios/(2)1bed

each lower has control of thermostat for both their unit and unit above them

owner (me) pays heat, electric = tenant

offstreet parking, long driveway with 4 spaces for vehicles (ideally 1 spot per unit)

I have snow removal company in place for snowfall over 2 inches

Issues I'd like to address:

• heat- how can I set guidelines for the lower tenants to keep it set at appropriate temp range (suggested ranges?) while also being conscious of the heating bill since I pay.
• For uppers- in the past I have received calls about uppers being cold,  I'd like to minimize those calls if possible
• parking- I am reinforcing the one vehicle per unit and also want to stress the importance of this  because if not the snow removal company may not be able to clear area
  
• Snow removal- they work on their own schedule due to their workload clearance times may vary throughout the season 
  
• Garbage- each unit has a trash and recycle bin 8 total, have had issues in the past about overflow/ not taking out to curb on collection night/ and using other bins any other tips for addressing this?
  
• Under 2 inch of Snow and Salting- with the company only coming out with over 2 inches how can I manage this with the building to suggest it is their responsibility for light snow removal and saltings, I can provide some shovels and salt.
  
• Thanks BP  I know its a lot and I may be over thinking it, but winter season is always stressful and I appreciate the feedback.
  
• Tags: Wisconsin Michigan Minnesota Illinois Kenosha Milwaukee Racine duplex triplex quads small multi's tenants landlord property management letter communication emails
  

Hi BP,

Due to unforeseen circumstances, I am in urgent need to find a new property management company for my properties.  I have limited options in my area and I did receive a referral from a friend of mine but their reviews on the internet have me concerned.  I would understand negative reviews from upset tenants but there are several from upset owner clients.  How can I ask them about these concerns from the public reviews in a professional manner?

and if you have any recommendations for my area (Southeast Wisconsin) please share.

Thank you

(Tags: Kenosha Racine Milwaukee interview management small multis single family)

@Rebecca Knox thank you for addressing that, I've updated the original post to clarify the vacant plot of land is owned out right there is no mortgage or liens on the property.  

My family is wanting to add my name to a piece of land we own, however one of the grantors on deed is deceased, what now?  The land was originally owned by my grandpa and grandma; in 2005 they added my mom to the deed; in 2017 my grandma passed away and to my knowledge they never officially removed her name from the deed.  So now mom and grandpa want to add my name to the property and we were going to use a quit claim deed...

Are there any additional steps we need to take in preparation for this transaction, or do we simply take death certificate to county clerk?  Any guidance is appreciated.

Tags: Kenosha Wisconsin transfer vacant land quit claim deed 

posting on behalf of a friend, looking for advice. Chicago Illinois; My friend owns his condo unit in a multi unit building, he has some issues with the upstairs neighbors that happen to be renters of that unit.  His situation is below, open to advice, comments, suggestions, general starting points for him. I do not have much more information than what is provided. (see below)

Above tenants have destroyed our bathrooms due to constant nasty toilet water damages.. and constant noise violations have caused my family to suffer from sleep deprivation. Owner is in a legal battle to get them evicted but said that the pandemic doesn’t allow evictions... I read that if the tenants are a cause for health and property damage concern.. that means it’s an exception to evict...

@Scott Schultz

Thank you for the advice, its definitely a combination of things for my taxable income my properties have good cash flow, the 4unit is about a thousand a month after expenses, I also house hack (small multis not by room) when I purchase so even though I am buying smart new properties do not realize much cashflow until I move out and rent the unit that I was living in.  In combination with making decent contributions to 403b and IRAs and school pension plan the money is being dispersed well for my goals; I just may not look appealing to lenders that are focusing solely on the taxable income line from my tax returns.

Maybe I would have more luck with a commercial lender. 

@Marcus Auerbach  I feel like what you are getting at is in the year i look to refinance maybe I should not take as many business deductions so that my income better represents gross income for the year as opposed to net.  2019 is roughly the same, I am not doing any crazy tax deduction strategies but the simple business expense deductions from my buy and holds like the utilities I pay and the property insurance, management fees and such.