All Forum Posts by: Jacob Walter

@Keith Schulz Hey Keith, we manage several short term rentals around Madison, Wisconsin dells, Baraboo, Tomah, Rome.

None of the cities, towns, municipalities have the resources to actually audit the 7 day rule or the monthly consecutive rule. For our personal short term rental investments we do not really consider this an issue in anyway. We do let our investors know that this is out there but we have also been operating in this model for 3 years without any issues.

The laws were actually created by the areas that are included in the premier resort area tax program (Dells, sister bay, eagle river, Rhinelander) to try and deter investors like us from creating destinations away from these high tourist areas.

@Spencer Dixon

I would love to chat. Born and raised in the area and the company I'm with manages LTR and STR in the area.

Shoot me a message and we can connect!

@James Mobley I do not see why you couldn't. A promissory note would not be seen and calculated in your DTI. With that being said I believe the partnering strategy would be the easiest way to structure if you are not buying all cash.

Hey BP,

We have a deal brought to us. 112 units in a low C to D neighborhood. The area has had new build homes going up but the area is still has a stigma. When you mention the name of the road the properties are on people some what cringe.

Myself and my partner drove by the location and it was not all that bad to be honest. Would I love there, no but I do not feel unsafe.

There was a thought to work with the city to get the name of the road and neighborhood changed as we would be cleaning up the area and could help allocate the stigma quicker.

What are your thoughts?

@David Park Hey David, I am a director of finance at a property management firm in Wisconsin. We love talking about real estate and teaching/learning from all kinds of people.

In your position it’s important to find a property manager that is also an active investor! Not all are….

I used a promissory note for myself to lend to an LLC that I am a part of. In Wisconsin this is legal but I know some states it's not.

Hey Ken, I invest in multi family properties with 2 exceptions the first house I bought I rent out and I just closed on an owner financed condo in a building where an investor I work with owes 96% of the other units. All others I have are 5 plus units. 

I do focus on the forced appreciation and keeping rents at market rate so when I cash out refi I can maximize the amount of money the property can support being taken out. Cash flow I look for $200 minimum per door. 

Hey James, welcome to the community. I would also recommend checking out the BP Rookies Facebook page. There is a ton of information on there for newer investors.

to answer your question regarding having family/friends financing a property, they would not be gifting you the money so you shouldn’t have to worry about that. You could cut them in as a partner and give them equity in the property or you can treat them as a lender. I would not know legalities of this in your state you could reach out to a real estate lawyer regarding your states laws. 

We use Appfolio. In my opinion this is the most well rounded property management software on the market as of right now. They also have an investor portion we use for our syndications 

Simplified, Cap rate is the return expected if paying all cash. 

Make sure you do your own homework the numbers given by the seller are usually manipulated in some way. 

The income is pretty easy to verify. 

Expenses is the tough part.

In my experience and with in our company we run every property at a 40% expense ratio as meaty all of our properties are with in a percent or 2 of this number expect our new builds which is lower.