All Forum Posts by: Evelyn V.

Hello,

I bought my first home in Kenosha Wisconsin a few months ago and have fixed them up to be rented out. I have listed the upper unit for rent 2 months ago and the lower unit 1.5 months ago, I am wondering if anyone has advice on what I should do differently? The upper unit is listed for $1400/mo, and the lower is listed at $1300/mo, previously lowered from $1350. Water is included, there are washer/dryer hookups in the basement, and no pets are allowed. Security deposit is $2000.
So far the upper unit has 135 contacts.
The lower unit has had 50 contacts. (Zillow data)
I've been doing open houses for an hour twice a month, and have had 4 applications so far from people who went. Should I contact a property manager?

There are a lot of things to consider, I'm unsure if this is normal for this time of year - other experiences and insight from local investors would be greatly appreciated.  

Thanks.

Quote from @Corina Eufinger:

It sounds like you need a local coach more than anything right now.  You need to be sure you are doing this properly since it is your first one.

Hi Corina! I'm just remembering now but we actually spoke almost 2 years ago before. Hope you've been well throughout all this time. Do you have any recommendations or how to go about finding one? I've gone to the meetups a few times in the past but I'm afraid I don't have much value to provide as I'm just starting out, my thought was to talk to a PM now and use their services once I have more properties. Thanks

Hi would anyone have any recommendations for property management in Kenosha? I recently closed on my first home and would like to self manage but I have a ton of questions on the local laws, structuring the lease, etc. I just want to talk to someone about going about everything the right way. I plan on using property management in the future. Thanks in advance 

Hi, I am under contract for my first property and just had an inspection done last week. The inspector recommended we get a structural engineer in as the first and second stories have noticeable sag, with "handyman columns" present below the affected area in the basement. Would anyone happen to know someone who is able to service Kenosha in a short time frame? Everyone I've called or left messages for is either in Milwaukee or Chicago, not sure if there's someone who is closer. 

Images below for reference as well, has anyone seen these columns before or has any advice on how to handle? 

Thanks. 

Hello, 

I have a great interest in environmental sustainability and have read a few books on green real estate development such as "Green Home Improvement," "A Contractor's Guide to LEED Certified Construction," "Green Building and Remodeling for Dummies," and others.

I like the idea of starting out small with my rentals where it makes sense - energy efficient appliances, using recycled materials when doing upgrades, with the possibility of branching into adding solar panels/doing green new build construction once I gain experience and know areas where it will be profitable. 

I'm wondering if anyone has recommendations on other books/resources to learn more about on this topic? Are there any leaders in this space that may be good to follow - both individuals or businesses?

Quote from @Nick Harrington:

Hey Evelyn - 

Milwaukee attracts a lot of out of state investors because of the lower average price points, cash flowing properties, and number of duplexes (though inventory has been tight). 

I agree with Marcus' thoughts - are there cash flowing duplexes under $200k for sale? Absolutely. Are they good buys? That really depends on what your goals are as an investor.

I think the most important thing to understand when buying duplexes in MKE for < $200k is there will be additional expenses that you will need to budget for in the short and long term. Often times we see duplexes with years of deferred maintenance pile up, it becomes a can that gets kicked down the road for the next owner, and then this repeats. 

When investors don't understand these additional costs on the front end is where we  can start to see investors become frustrated and not succeed.  

With the budget of < $200k, I would hone in on a property that is structurally sound, could use cosmetic repairs, but it appears that ongoing maintenance has been performed consistently on the property. If it is an old property, your upfront repair & ongoing maintenance / cap ex costs are typically going to be a higher.

There are deals on the MLS now that on paper have a COC return of > 12-15% - but always keep in mind maintenance costs are going to be higher because of the age and condition of the property, eating away at these returns if you don't budget for it.

I always recommend a first deal to be a "base hit", especially being out of state. The returns might not be an outrageous deal (obviously the numbers have to work), but it will be a safe first property that will yield return, and will not leave a sour taste in your mouth about rental property investing. 

 Hi Nick, thanks for the response and insight. I definitely budget more in when analyzing older homes, and take into account the description of updated items because of these costs. I prefer to be in the $100k-$200k range just as I am getting started, but from what I'm learning so far I don't mind paying more for it to be in a good area and makes sense. I want to get started on good note, and I think a balance between cash flow and appreciation is key. Thanks again for the information!

Quote from @Rebecca Knox:

In my opinion, for that price point, you will be in challenging areas and the properties will need work, especially 4-units.  

I think a more realistic price point for 4-units is $275k-350k but that's just based on my opinion and observations in the market. 

 Thanks for the information Rebecca! I'm starting to get a better idea of what I should be aiming for. I've been looking for a while and saving all during this time, so I'd prefer to pay more if it's in a better area and makes sense!

Quote from @Marcus Auerbach:

Quote from @Evelyn V.:

Hi Marcus, 

Thank you for the information and insight! I've seen a few of your Youtube videos as I've done research on Milwaukee in the past, and I wish more people make this content for local markets as it is so helpful. I'm new to this but trying to take in as much information as possible. 

Thanks for the flowers! I've been an investor without a license long enough and my goal is to provide the information that I was always looking for and never able to find. Most of my research about Milwaukee is done for my personal investing anyway, so I just summarize it for my YouTube subscribers. It still takes a considerable amount of time, if it would be easy, everyone would do it.

 It definitely is helpful for people like me getting started/new in the market. I definitely agree with your last comment - the concept of investing is very simple but once you get started it's a lot of work and effort. The benefits are worth it when you are able to better support your family, have freedom of your time, and make the world a better place. All it takes is some patience. 

Hi Marcus, 

Thank you for the information and insight! I've seen a few of your Youtube videos as I've done research on Milwaukee in the past, and I wish more people make this content for local markets as it is so helpful. I'm new to this but trying to take in as much information as possible. 

Hello!

I am from Lake County Illinois and have been looking for a multifamily (2-4 units) to get started with for my investing journey. There has not been much inventory in my area, and I've also looked at Kenosha County as well.
I'm considering Milwaukee as there are a lot more homes I'm seeing that fit my criteria, as I work in Wisconsin anyways. I am looking in the $100k-$200k range where value can be added like cosmetic fixes, but no major rehabbing.
Looking to chat with others in this market to get an idea of some good areas, and see if anyone has any referrals for agents.

Thanks!