All Forum Posts by: Josh Teunissen

why join a community built for sharing info and experience if not to share your experience? It seems like you're guilty of the same thing you're accusing others, which is, or could be, learning off the backs of others while not sharing what you've learned. 

Now that's pretty harsh of me. But I am in fact a newbie. I fit in the camp of everything to learn and not much to share. Mostly I feel like I should be a success myself before I go spouting off how intelligent I am and why someone should listen to me..., 

One thing I'll say here or repeat is that lots of things I've read about and thought I learned were not the same as buying my first "deal" or duplex I'm living in. I learned more by the experience, or at least I didn't truly understand the things I've read here on BP until I went out and took some action. 

So you feel like you're giving away what you worked hard for, but in fact, whoever receives the info has to still go out and apply it, which is guaranteed not to be as seamless and and easy for them as you imagine. That's been my experience on the newbie side

check with @Jason Bott, he is super helpful and can get you what you need. You'll have to retype his name with the @mention because my phone doesn't tag for some reason

I apologize that I don't have any experience building. But a builder in my area does this. They built the duplex I own in 1989, sold 2004, and I just bought this year. Idk exact price per sq/ft but they rent their new units this year @ 975 a side for a duplex

As a newbie, I too have thought about starting a property management company, however, for me the goal would be to build relationships with potential sellers, as well as have the systems in place to more efficiently run my personal property(ies). And hopefully reach a size where I don't personally have to screen and answer calls haha idk if that's a pipe dream

@Aaron K. @Zach Quick  @Dave Carpenter  if you read up I tryd to @mention

@Marian Smith thank you! your answer has given me a lot of food for thought. the block my duplex is on is a mix of 2/4 units and condos with single family a short walk down and all around. Land is definatly readily available, at least buildable lots and farm land surrounding. I don't know cost to build, new homes are listed $200k-$300k. I also don't know yet what the supply/demand for our area is, i bought a duplex to live in, close to where i work. But these are all things i need to learn and understand better. My immediate area is fairly well maintained. The 4+unit buildings across the street show more deffered maintenance than the condos right next door.

@Quod L. They even have a Luxemburg festival here!

@Dave Carpenter I purchased 2 weeks ago in belgium,  I'll update my profile when I have a chance. 

Maybe what I'm noticing is age has a close corerlation with "class" in smaller towns like belgium? Or I'm imagining, can't throw that out haha

Belgium for instance,  new build duplexs are renting in the $900+ range, my unit $665, on the old side of town I don't yet know what rent is however the buildings don't look maintained and so on. Also towns like belgium arnt a destination on the map so to say. 

Also you wouldn't think it, but I know of quite a few people who drive to the Milwaukee area for work. Not the majority by any means. And most of the people I know are farther north. I think they're crazy.

I agree jobs are fairly stable. 08 was rough up here, my family was affected. 

Thanks for responding, I would like to meet local investors like you

@aaron klott 

It's a bit of a drive for good jobs. But every town in these two counties is a drive. You have sheboygan or Milwaukee for major jobs. There is a public beach on lake Michigan here, an interurban bIke trail, and freeway access. The real high earners live a bit farther south in mequon/theinsville/cedarburg I think, at least based on home values

@Zach Quick 

This isn't large multI family but rent is under market, one unit has a room that could be turned into a 3rd bedroom, and I bought $9k under appraised. Not a grandslam deal but my living situation is much improved and the rent from one unit is $10 over P&I so Im happy with it for a begginer 

I will try to remention you when I'm near a computer because my phone doesn't work for mentions.

I purchased a duplex built in 1989. It's my first home/investment. Its in an area that today people generally want to live, the other homes are kept in nice condition and new homes are still being built only a few streets behind. 

My question stemmed somewhat from the dead horse debate of appreciation vs. Cash flow but I don't want to debate that here. 

My home is almost 30 years old. When we look at buy and hold, we think about holding for a long time. So I thought what is the market for my home/rental market going to look like in another 30 years? 

The first obvious thing (at least for me) to do is look at the market for today's 60 yr old properties. Or properties built in 1957. Now I haven't yet done this as I've only just begun to question, but a rough draft view of 50's properties is lack of maitenance, lower income renters, toys littering the front yard kind of stuff.

I would really like to hear from seasoned investors who have been around to see these changes or hopefully lack of changes. I presume that much of the thought regarding this is decided prior to purchase? I live in the Midwest, so we don't have fast moving money and big money gentrification to over night change an area.

However, if the population of the world doubles every 40yrs, we could see more rapid change in some way or another.

I'm not trying to ask a crystal ball question. More how are other investers looking at the future of their properties and neihboor hoods as they age. I think likely someone else has seen this play out as real estate investing is not a new idea and I think in many instances we can look to the past for clues. 

Thanks in advance,

~Josh

Originally I wasnt going to worry until we close in two weeks hopefully. 

First, the #'s on the duplex

Tax assessed value- $175000

Appraised value- $163400

Purchase~ $156000

The reason I'm asking now is if we close and the tax is in escrow, if I contest and lower the property tax, will I be required to continue to pay the $275 a month as part of the mortgage payment? I assume taxes fluctuate on their own so I wonder how that is dealt with.

- Also in your opinions are the #'s different enough to justify trying to lower? The current owners are doing some minor repairs. I plan to make some improvements as well. Nothing like a major rehab though. Will this have any bearing on the decision?

To put my question more clear, is it worth pursuing the lower property taxes? 

I understand theres bigger fish to fry in the real estate game but I want to be proactive. 

Thanks for the input, - Josh

@Nick G. These "condos" sometimes have a SFR next door on each side and back. Can there be an HOA with only two people? Also im not familiar with PUD, HOA's either for that matter other than the name. Something for me to look into. Ive seen side by side condo communities but the ones im referencing are always amongst single familys. I should look at the Sq.ft and compare to SFR as you have, they are 50% less than a duplex equal to 2 of these condos. I have really only made note of about 3 of these for sale over the last couple years. Always in the newer nicer side of these small towns. Thank you for the response. Ill have to look further into the specific type of property these are.