All Forum Posts by: George Frick

One way to think about it is to prioritize your criteria. Once your criteria are prioritized; you can draw a line through the list of where your current price gets you. So for [a bad] example:

1. $100 cash flow per door

2. Updated fixtures

3. Newer roof

4. Newer furnace/AC

Each property can fall on the list to the first criteria it misses; but you can adjust this based on the 'deal' you get on the property. You can lower the offer by the cost to bring your priorities to the table yourself, or otherwise negotiate.

But never just give up a criteria; you must meet them all in some way or the property doesn't qualify. Some things (like location), can't be brought into the deal through negotiation. Others can.

Hello,

 I'm a newer member from Milwaukee, WI. I've been mostly reading and not trying to barge in with specific questions. But I have some that I haven't found online or in the forums.

1. What happens to the security deposit when purchasing a duplex? Should we consider it lost, or will it be discounted from the purchase price? Is this something to include in our offer?

2. Are we allowed to for example; knock on the lower units door and ask them questions? Would we be violating something? I've been working through the training course for the Wisconsin realtor license and so far nothing says I can't?

3. Many duplexes are advertised with statements like "fully leased for the entire X years the property was owned!". This doesn't mention turnover though. If the duplex is a mile from a university this means nothing. How do I find out if the tenants are always moving in during the spring and out the next spring?

4. If I look up a property online, I can get the owner (and usually their phone #). I assume it is bad form to contact them directly?

5. If we put 25% down for the first property, this leaves us with almost no way to get a second property. Do most people here just save? A lot of people have a goal of one property a year. With this as an example; how do you build those funds?!? Do we take an equity loan on the existing properties for the down payment?

Thanks and sorry for the noob questions.

That's why it is great that it's a rule of thumb! We're looking at a lot of factors; especially for a first duplex. After the first, we may go beyond Bay View.

Hello!

My name is George Frick and I'm a software developer and homeowner in the Milwaukee area; specifically Bay View.

My wife and I are looking to buy our first duplex in the Bay View area for long term buy and hold.

I grew up the son of a contractor working for many of Milwaukee's landlords refurbishing apartments between tenants. I've seen a few things in my time; but now I mostly work on projects in my own home.

We're hoping to run a positive business; keeping properties attractive and working to keep tenants involved in their community.

I appreciate the reply. Even your description however, you are talking about pulling the money back out of the deal later (this may answer some other questions I have).

With the options you mentioned, it's still obviously an overly blanket statement that isn't really being backed by detail (whatever the CFFU is apparently explains it? :-)

I would love to 100% finance my first duplex; and as much as I have been reading about financing options, nothing has led me to believe I can avoid the down payment.

Experts prove me wrong. It starts to sound like a late night tv commercial with all of this 'creative solutions', 'oh you just have to know how silly'. Next you'll be telling me it's a mindset.

Believe me, I'll always go for seller financing; but how many sellers are truly interested in this? (Tips on convincing them are welcome)

Also, my apologies for being the noob bursting in on what was obviously a statement for at least intermediate investors.

As a newer member... I'm not seeing it clearly.

How are you getting this 100% financed? If I start calling lenders right now to buy a duplex for $180,000.00 with 0.00 down; I'm under the impression there will be laughter.