All Forum Posts by: Larry Frank

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $152,000
Cash invested: $45,000

4 unit with 1 tenant paying $450. Estimated rent 600-650.
No W/D in building but all units were fine. Did not invest anything into building.

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

I like the area of Racine, good cash flow, good property manager.

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

With realtor. Final and best within a week or two of being listed.

How did you finance this deal?

Regular loan.

How did you add value to the deal?

I did not.

What was the outcome?

Still pending. One unit rented for $695/month well above pro rata but it took longer (it was a cold winter in WI).
Washer Dryer quote was 5k for just installation so I passed.

You should talk to a financial advisor and seriously think about putting the money into the stock market if your investment horizon is long.  

I just stumbled on this post and I invest in Racine and Kenosha.  Obviously Fox Conn could be huge.  I am interested in any multifamily buildings anyone comes across.  Thank you.  

I'm a buyer in racine/Kenosha.  If you find any deals you would like to wholesale please give me a show.  I am interested in multi family 4 units or more.  Duplexs and houses would have to be a good deal.  

I bought a property just like this.  I thought I could repair some of the tuck-pointing etc down the road.  Then I got a citation.  I bought my property for 155 estimated Id put in 20k.  So far I have put in about 40k (not including any unit renovation) in less than a year.  However, I have the building looking decent again.  Tuck-pointing was about 8k.  looks like you have some rotten wood.  I also think your floors need some work.  How much do you have budgeted to fix the problems?

Id recommend replacing those boards with glass block (about 300 a window).  It keeps water out and seals the building.

How is the electrical and plumbing?

As long as you budget in the repairs you should be okay.  I would have your GC give a ball park estimate that you can show the seller and renegotiate the closing price, even if you are buying As IS.  

It is pretty easy.  If you can buy the property for cheaper than plots of land are selling for, its probably worth wholesaling.  Otherwise, I would not knock the house down.  

How much principal are you paying down?  Would you want to move back in in 2020?  Does neg 800 include expenses such as property manager and repair?  

Okay I found it.  About how many people show up?

Sorry I missed this.  Will it be a monthly thing?

Id take negative cash flow on a 5 year mortgage.