All Forum Posts by: Lloyd B.

I am looking at a property that has a single family home and a secondary building that was used by the current owner for his business.  The property is zoned B1 which allows for the owner to reside there.

The problem is that years ago he remoded the upstairs of the second building to have two apartments.  These are not allowed due to the zoning and since the property is in proximity to the airport which places density requirements on the parcel.

My plan is to move into the house and fix the other building up into office space to rent out.  This is allowable under zoning and the local government has stated that my plans are fine.  The issue I am looking at is in regards to finacing.  With the two units am I going to be restricted to investor or multifamily loans even though they cannot be rented out legally?  I was kind of hoping to get a primary residence mortgage since I plan to move there.

Any ideas or suggestions from the group?

Thank you everyone for your responses.  I will reach out with some more details.

Hello,

I found a multifamily property that I am interested in and have a few questions for the locals.  It is between MLK St and US92 north of I-175.  Is this a decent area?  A quick Google Earth view looks alright in some areas and the crime map on Trulia shows yellow.

I emailed the listing agent but he isn't much for responding.  Does anyone have a recommendation for a good agent in the area?  Right now I am planning on dropping down there next week or the week after to survey the area.

If I do go ahead and purchase this property, I will need to get a property manager.  Does anyone have a company that they are happy with?  Ideally I want to get that lined up before proceeding.

Any other suggestions or pointers, I would be more than willing to listen.

Tadd,

Depending on the property I would really question why it was totally vacant. Like others have pointed out, leases can be a major factor when purchasing a multifamily building. If you cannot get a copy of the leases when looking at a property then you should move on.

Personally, if I was looking at a duplex or triplex and it was totally empty I would want to know why that is the case. You don't want to jump into something that is going to have negative cash flow or substantial problems.

Bill,

When I have made out an earnest money payment in the past, it has been to the realtor that was representing me. The agency would hold it in escrow until the purchase offer expired or the sale completed. I would be really nervous about cutting a check to the seller in case the deal fell through or if he is less than honest.

Nicole, it sounds like you and your husband are doing your research and are developing a plan.

In regards to using leverage, it is a tool that you can use just like a credit card. It is a great tool if one is careful and plans ahead. If one is foolish with a credit card, they can get burned very badly. I look at mortgages much in the same way. Jumping into something haphazardly will most likely end in a mess.

Hi Joe, thanks for the welcome.

Steve and Dawn, thanks for the pointers. I will focus in on those areas a little harder.

$25,000 for a home that has good rental opportunities, doesn't need much work, and is located in a decent neighborhood sounds good to me!

Thanks for the welcome everyone.

Dawn, I might have to pick your brain on a few good neighbor hoods to look at.

Kurt, at this point I do not have an agent nor a property manager but do have some contacts in the area to help with the trades end. Right now I am in the researching stage.

My main interests currently are single family rentals and multifamily units. If I could keep in the sub $50,000 range I would be happy on single family units. Basically it would depend on the cash flow, condition of the property, and safety of the area. Right now most of the places around me are overpriced (shells that would require major rehab or higher end vacation homes on the lake). My triplex that I was able to snag is running a cap rate of 15% (not normal, it took some work to find and close that deal) but is a hike from my house.

My initial look in Milwaukee has been on the northern end, say 60 to 75 st areas.

Right now I am thinking about dropping down that way in a few weeks to do some scouting and follow some leads. I would love to meet up with some of the area investors for coffee if any would have time.

Hello all, my name is Lloyd and I have enjoyed soaking up the information that this site has to offer.

A little about myself, I work full time in the education field and purchased a rental home about 8 years ago or so with another person. Looking back it wasn't the best investment but I have learned so much from it. Due to some issues with the property and the local economy I didn't expand my investments like I had planned on.

This year I have added two investment properties to my portfolio. One is a triplex that has a really nice cash flow and the other is farmland. I have a plan in place and have been refining it to keep my goals realistic and to measure my progress.

Due to a lack of decent jobs in my area I have been thinking hard about expanding my area of operations down into Wisconsin. At first I was looking into Green Bay but have added Milwaukee after reading the experiences of posters here. My main concerns are finding areas that are not crime infested slums and areas that have a steady rental market.

Anyways I look forward meeting new people and growing my business.