All Forum Posts by: Kathy Mcguigan

Is it rented yet?  If so, is it covering your expenses?

Hi Guarav,

My husband and I have 2 3/1 single family Properties in Beloit.  There are some great opportunities in the area and you can definitely make at least 1.5%-but it is hard to find property in any condition.   Crime is a problem and is concentrated in a certain area but many of the neighborhoods are somewhat depressed.   We have been looking for duplexes/triplexes but have honestly not been able to find any that are even in decent condition.  To be honest, many people from out of state hold these properties and have not taken care of them. We have looked at properties in the winter with cardboard in the windows that nobody is fixing.  One woman had a bed against an outside door because the landlord would not fix the lock.

That being said, the area is turning around.  Someone has bought the GM plant in Janesville and it is only an hour or so to Racine where Foxconn is going in.  I would not be surprised if building does not start booming in that area as well.  

I would have to say I would walk before running.  Your profile says you are from Fort Atkinson.  Why not start there?  I would start with one rental or duplex to start because that is where you will learn.  Then do another.  While you may not make a fortune quickly, you will learn the mechanics.  Reading, listening to podcasts, taking classes are all great and you should do all of them but actually doing your first deal will teach you more.  And better to learn in your back yard than an area you are not familiar with.  

My husband and I live in Deerfield.  We invest in Beloit.  The margins are good.  I would invest in Fort Atkinson as well if the opportunity arose.  It is a good area.

Good luck.

You can contact the listing agent-Just be cognizant of their time since you are not intending to buy.  That would be my only thought on that.  You can also look on the listing and deduce some of the information.  Sometimes it says separate meters or something like that.  If the meters are separate, usually the tenant pays their own.  It is when a multifamily has a boiler or centralized heat that the landlord pays.

Hi Jared,

If you are just trying to get experience with your reports then I suggest using Rent-o-meter to get an idea of the rentals in the area.  Make sure you are looking apples to apples.  It will give you a good enough idea of what the potential rent is.  When you start looking for real, what we do is we go see a string of properties and get as much info from our agent as possible.  If there is a property we are interested in making an offer on, we request Schedule E's from the prior tax year at least and current income and expenses from the owner of the property.  Usually they comply.  THe most important thing you need to find out is who pays for utilities, mowing/snow removal, when the leases are due to expire and the payment history of the current tenants if there are any-to be honest, we would rather buy without tenants.  We have also found that is most cases (in Beloit where we buy anyway), the property is in nee d of repair and is under rented. 

We allow 55 per month.

I use an app called Pocket. love it! I save to pocket from my phone, iPad, Pc and works on android. When I have free time I just go to Pocket and read 1 or 2 articles. I can be in Facebook where I get bigger pockets articles, email or on the web.

my question concerns lending from a self directed Ira.  Here's what I would LIKE to do.

Example:

Loan 100k at 10% for say a year. From self directed Ira.

2 points at closing paid to me- not Ira.

Is this something anyone has done?  Or do the points have to go into the ira as well?

Jason if you want to learn come to the next REIA meeting in Madison on Oct 24. First meeting is free. You can put me down as a referral. Your eagerness is refreshing. Welcome!

My husband and I would also like to attend.  Great Dane in Fitchburg sounds good.  We are also members of the Madison Reia and can answer any questions about it.  

Please put down George and Kathy McGuigan.  Thanks for planning!