All Forum Posts by: Kevin Klaas

@Brock Mogensen

Thanks! 

@Rebecca Knox

I need an attorney to help set up an LLC and possibly a land trust for anonymity. I own a duplex with my partner and want to make it official via an LLC. Main goals are asset protection and formulating a partnership with a 50/50 split. I am currently looking into Anderson Business Advisors for the LLC formation. Thanks for the recommendations.

@Daniel Hyman

Just set up an initial consultation with your company. Looking forward to meeting you!

Thanks for the recommendation @Chaim Lampert @Ben Bergman

Looking for good attorney and CPA referrals in Milwaukee. Any help would be greatly appreciated. Thank you! 

@Jake Fugman

Thank you, Jake. I am very new to the Chicago market. I am currently living in Milwaukee but will be settling in Chicago long-term in the summer of 2022. Some concerns I have with the Chicago market include the stagnant population growth as well as high property taxes. I'm sure there are submarkets within Chicago that don't reflect the overall trends of the city. Are there any real estate networking events/groups in Chicago that you would recommend?

@John Warren

Thank you for your insight. Areas I would be interested in are safe, blue collar, class B/C neighborhoods that are in the path of progress maybe along I90/I94 corridor. Are there networking events or meetup groups you would recommend specifically for commercial multi-family?

@Jonathan Klemm

Thank you, Jonathan. I currently live in Milwaukee but I spend most weekends in Chicago. I'll be moving to Chicago permanently in the summer of 2022. Thought it was never too early to start networking. Any groups/networking events that you would recommend? 

@Dave Polhill

Hi Dave. Looking to start connecting with other commercial (5+ units) multi-family investors in the Chicago area. I am currently house hacking in a duplex in Milwaukee and I am hooked on multi-family investing. I think going bigger is the way to go due to economies of scale with bigger margins and better cash flow. Do you currently invest in Chicago? If so, where do you invest?

@Michael K.

Hi Michael, thanks for the reply. What kind of CAP rates are you seeing for like 5-20 units in the NW suburbs. I would imagine CAP rates overall are super low right now given the insane real estate market. I don't know have an exact CAP rate I aiming for. I do know that higher rates come with more risk (like 10+% are more likely going to be properties that are in high crime areas or require large rehabs) versus lower CAP rates (<5% that are likely stable properties with almost no value-add opportunity). Those numbers are estimates. Ultimately, safe location is key to me. I think investing in like B neighborhoods with B/C class buildings is the sweet spot of MF investing. Ideally, I look for the value-add deals (cosmetic rehabs, poor management, RUBS, etc).

@Tony Freeman

Thank you, Tony.

@Emily Irish-Ryan

Hi Emily - my duplex is in Milwaukee. But I will be living/investing in Chicago long-term. Are you house hacking as well? Where in Chicago are you investing?

Hi! 

I am looking to connect with Chicago commercial multi-family investors. I am a motivated new real estate investor (current portfolio: 1 duplex) looking to expand my network in the Chicago area. I have a passion for real estate investing and I am excited to connect with others who feel the same way. 

Please reach out, would love to chat! 
-Kevin

@Jorge Ruiz the current rents are 875/850 but with some LVP flooring and fresh paint, I’m fairly certain I can get at least 950/unit. I think 1,000/unit may be a little ambitious for that area but not out of the question. 

@Chaim Lampert that’s encouraging to hear! Thank you for your insight

@Rebecca Knox 3465 N 91st St just sold for $232,500 and it's a 2/2 duplex. My property is on North 86th street actually in the St. Aemilian's neighborhood. My best guess would be it's worth around the same price with no rehab so 230k. The appraisal comes in on May 17th. I'll post an update once I hear back. 

@Will Dillard Thank you, Will! 

@Marcus Auerbach Thank you! Seems like this market is not slowing down any time soon. 

@Dan Miklosz Thank you!

@Jennifer Walsh Absolutely - I will be sure to reach out. I also was looking in Waukesha. Looks like a great place to invest!

Hello Milwaukee investors!

I am currently under contract on a 3/3 duplex in Nash Park. I plan on house hacking and then moving out in a year and repeating the process. Would love to connect with others in Milwaukee. 

I've been in analysis paralysis for a year and finally made the leap of faith. I hope that I can help others by sharing my story. Feel free to reach out with questions.

Here is the breakdown of the numbers: 

Purchase price: 

$210,000 - 3/3 duplex in Nash Park (off-market deal). Light cosmetic rehab (paint, flooring). 

Loan: 

0% down @3.75% fixed for 5 yrs and then variable for remaining 25yrs up to max of 9.75% - new professionals program loan w/ local lender. Plan on refinancing before variable rate kicks in after 5 years. 

Closing costs:

Approximately $5,000 but negotiated a seller credit of $2,500

Rent: 

Current units are being rented at $875 & $850. Hoping to rent both 3BR units @$1,000 after light rehab (paint & flooring)

Expenses: 

PITI: $1370/mo
Vacancy: 5% of monthly rents
Maintenance: 5% of monthly rents
CapEx: 12% of monthly rents
Utilities: $0 - plan on passing water onto the tenants. 

 
COC ROI: 

25% w/ conservative estimate of rents being @ $1900 total (950/unit). 

Cash flow: 

$150/mo @ $1900 total rents