All Forum Posts by: Katy Neubauer

This is great! I plan to do the same thing with all of my kids. The goal is to have them purchasing their first rental by age 12. If I had started at that age, I can't imagine where I would be now. My spouse is not really into real estate with me, but he supports it and doesn't step in my way. 

We don't allow dogs in our upstairs apartment above our commercial building because the flooring is hardwood and it causes way too much noise. The tenant offered to pay more for adding a dog and we refused. We also have a backyard area where the last tenants would leave us huge piles of poo, so thats also a big nope. Also, the current tenant's cats have clawed up all of the corners and we will have to patch and repaint when she moves out. It all depends on the property. 

This is awesome! I wish I had started with house hacking. I encourage everyone I know (who is renting) to start this way when they go to buy a house. Best of luck to you! 

Thanks, Khang! Many lessons learned on this one :) 

Definitely don't let a tenant do any work. I lost quite a bit of money allowing this, and the guy who claimed to be a "contractor" didn't have a license and did not pull permits. Its a hot mess. I avoided a property for having a furnace in the living room, so I don't have great advice other than bringing in a professional and getting a couple of quotes and suggestions for removing it/ coming up with an alternative. 

Retail other investment in Oshkosh.

Purchase price: $159,000
Cash invested: $61,500

This past year (2019) I was able to refinance the building and pull the majority of my initial investment out (Approximately $54k). The property appraised at $218,000.

What made you interested in investing in this type of deal?

I wanted to make sure our landlord didn't increase our rent based on on our property improvements, sell it or ask us to leave. It is difficult in this area to find affordable, yet decent, commercial space. At the time, I had not yet started investing in real estate and was VERY new to everything.

How did you find this deal and how did you negotiate it?

I found this on craigslist and asked the landlord at the time to pay for flooring for the front space. The photos they listed online showed a finished space, and when we looked at it, the place had been gutted. After renting for almost two years, and putting a ton of work into it, I asked to purchase the building from the owner.

How did you finance this deal?

I financed this using a 20 year Commercial loan and 20% down.

How did you add value to the deal?

The entire building was fully renovated. The upstairs apartment has all new windows, flooring, paint, kitchen counters and cabinets, drywall and island. The downstairs studio is fully renovated, having added a concrete floor base to cover asbestos, flooring over that, new walls, office space, bathroom, dressing room, new ceilings, modern industrial finishes and the outside was also painted.

What was the outcome?

This property is unique in that I did not purchase it to be a rental property for cashflow. I bought it in 2016 after renting it for two years for my professional photo studio. We are still holding this property and will continue to work from it. For us, it is a great deal compared to spending $1500+ a month for renting a retail space. This past year (2019) I was able to refinance the building and pull the majority of my initial investment out (Approximately $54k). It appraised at $218k.

Lessons learned? Challenges?

Don't hire a contractor without thoroughly vetting them and asking a lot of questions. Do not pay them in full until the work has been completed! I put down 20% and paid twice for the upstairs apartment to be renovated, since I was very new to the world of contractors and paid up front. BAD MOVE. I lost $10k the first month I owned the property, and the upstairs apartment sat vacant for almost a year.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I've worked with Matt Bakalars at Fox Valley Savings Bank for my last three properties. He is very patient and helpful and I would highly recommend it. Jennifer Fredenhagen is my real estate agent for most of my properties and she is extremely detailed and fast on her feet.