All Forum Posts by: Kyle Kalish

Hi Derric, unfortunately we haven’t gotten to it yet. A different property came up locally that we decided to jump on. Still anticipate looking in this market though. My plan was to join the local Facebook groups to see if I could get recommendations on cleaners/handymen, whether that was vacation rental related or just Eagle River area generally. If you go that route let me know how it works!

Hey Drew, I've been following this market for a while- I'll PM you.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $125,500
Cash invested: $12,550

Purchased a 3/1 from an accidental landlord who wanted to offload the property as she wasn't interested in being a landlord.

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

I learned that this property had quality tenants already in it and wanted to re-up the lease in August. Being my first investment property I felt this took a lot of the risk off of the table because there was proof of concept. I had to make very few assumptions in my calculator which certainly puts a newbie like myself at ease.

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

MLS; This market is just as competitive as everyone else's, I think my advantage was putting an offer in quickly.

How did you finance this deal?

Portfolio loan; was able to put down only 10% on a 5 yr. ARM, amortized over 30.

How did you add value to the deal?

This was listed as a 3/1 but I noticed there were two additional "bonus" rooms and plumbing was started for another bathroom. With relatively minimal effort I could quickly be owning at least a 4/2! I'll let the current tenant stay in the property in the condition it's in and then once they move out I'll make these renovations. At that point I will be considering listing this as a STR as the market is strong for that strategy as well.

What was the outcome?

We'll have to wait and see!

Lessons learned? Challenges?

Lesson learned- trust but verify! I was told the tenant paid all expenses and was paying $1,150/mo. Come to find out later, the landlord is responsible for water/sewer and rent is $1,075! Thankfully it still cash flows even at that level and I also lucked out that the lease is over in two months after acquiring the property. At which point I'll offer this unit to the tenant at $1,125/mo and they will also be responsible for water/sewer.

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

Jack Cheng with Cheng Realty was great and also Corey Pope with Woodford State Bank did a terrific job as well.

Thanks guys, great point! I didn't even consider that her authorization was already included under the inspection contingency. I will keep pushing on it then, thanks again!

Hey all! I recently had an offer accepted on a property and the offer included the works: Appraisal, Inspection, and Financing contingencies. A couple of days later I was reminded on a podcast that a great due diligence step is to get the sewer scoped. I called a provider to get that done and they said the current owner needs to approve however, when my agent asked to owner she refused to approve the scope.

I have no reason to suspect there are any problems with the plumbing/sewer lines and neither does the current owner. Has anyone else run into this? Should I have written a scope into the offer?

Appreciate the feedback!
 

Thanks @Andy Crooks, I will definitely check them out!

Hey all! My wife and I are all set up to purchase some STR's in the Eagle River/ Northern WI area and would really appreciate connecting with some folks already doing this. We're in the Madison area, let us know if we can grab a fish fry some time ;)

Very good info, thank you both- it sounds like practice is the best teacher!

Thanks Matthew, great tips as well. I would imagine Tina's suggested book will help a lot with that process- just have to get out there and be as thorough as I can! But again, thanks for clarifying there isn't an expectation that a contractor/inspector will be available prior to submitting my offer. 

That’s great info Tina, thank you! That book has been ordered :)