All Forum Posts by: Kyle Mack

Sounds Good, I Plan On Being There

Hey @Ed Riggenbach , welcome to Biggerpockets

I look forward to meeting everyone tomorrow. My wife and I plan on attending.

I was disappointed to miss the last meeting but will definitely try to make the meeting in January. Look forward to meeting everyone!

this sounds very interesting.... I would love to even get some tips from those who have done REI before, especially considering that mentors would be able to provide advice specific to our area and not general guidelines that would apply nationally.

Hey Blake, welcome to BP! good to meet you! I think its cool that lately, I've seen many people from Milwaukee. I am brand new to real estate investing and learning tons from this website. I plan to attend the REIA meeting at the end of this month.

Good Luck!

Welcome to BP, Orlando. I am new to the website and REI in general. I had heard about the REIA meeting but hadn't attended one. I think I may try to make the feb 26 meeting. Its good to see another investor in the Milwaukee area

I'm sorry, I should've clarified on my unofficial grading scale. Im a student so I was grading on a A - F grading scale. A+ has the best money can buy (condos & million dollar homes) while F is the poorest neighborhood type (inner city,boarded up homes.

The C+ neighborhood i live in probably has median home values between 100k and 150k. It is mostly single families with 4-8 plexes scattered throughout. It is located about a mile from a nicer suburb.

The 4 plex I am interested in is similar except the home values range between 60k and 110k and there are more multifamilies around it, so I would rate it a C/C- and this neighborhood is a bit deeper in the actual city of Milwaukee.

Hey Guys, I am looking at buying my first investment property. I currently live in an 8-plex (2/1 units for $625) in a C+ neighborhood. The property I am looking at is a quadplex in a C/C- neighborhood. Here are the numbers:

Asking price: 120K
Units are 2/1's, rent for $600 each
Built in 1959
Tenant pays heat and electric

Income: $600 x 4= 2400/month and 28.8K/ yearly
I used the 50% rule to cover expenses, but some of them would presumably be:
Insurance: $115
Taxes: $357
Vacancy: $240 (10%)

The property seems to some sense using the 2% rule (2400 a month rents is 2% of 120k).

Financing: I plan to live in one of the units and use FHA financing.
FHA down payment of 3.5%: 4200
Loan of 115,800 at 3.5% interest= $520 monthly payment

After 50% Rule, $1200-$520 = 680/4 = $170 profit per unit/monthly

I have just a couple questions about the property.

The owner recently bought it and replaced the windows/doors and claims that the building is in good shape.

1. Why would try to get rid of the property if he is presumably profiting 170 per unit on a monthly basis.
2. The neighborhood is slightly worse than the one I live in now. I am comfortable in my neighborhood, but not so sure about the quadplex neighborhood (although it is only C vs my current C+). Has anyone ever had to choose and been in this situation before?

I'm also hoping someone will comment on this potential deal and see what people before me have encountered or done. Thank you!!

Hey J Scott, is there something that is special about Milwaukee? Why and how did you decide to begin investing there, of all places? Its a solid town with lots of potential, but most dont think of milwaukee as an oasis of opportunity.