All Forum Posts by: Lucas Wagner

I saw your post and i thought it was a no-brainer to buy a rental property first, worry about the car payment 2nd.  After reading all the posts on here I STILL think this is an easy decision.  

Regardless of the interest you're paying, your car loan *should* be paid off in 5 years or less...the rental property should generate income for a far longer period of time.  Find a property where the cash flow covers your car payment and you can always try to refinance your car payment with another bank or at a later date as well.

Also, a lot of people seem to have car hate here, I honestly don't get it (it's all subjective though).  Investing in real estate is all about making money to do the things we want.  Some people want to drive a nicer car...that doesn't mean a lambo or lamborghini necessarily, but buying a 'beater' car isn't going to change your life for the better one bit.

Not trying to be the contrarian here, but I feel like a lot of people posting here get pretty worked up about cars all the time.  We get it, they are a terrible investment.

Thank you all for your replies!  very helpful

So, I tried to search this and couldn't find anything.  I'm wondering if anyone has tips for exchanging an early move-in date for the new tenant doing cleaning at the property.

The early move-in would be a full week and the tenant can clean the property as much or as little as they'd like.  It won't start off in filthy condition, but it will require some cleaning.

Let's assume I've decided to do it so we can avoid the 'should i or shouldn't i' discussions.

What i'm interested in is how it's been done before (contract used?  addendum to the formal lease?)  Any other considerations.

Thank you!

Garrett and Zach, 

Have either of you guys looked at the Dubuque market at all?  I also live in Madison and am wondering what some of the nearby markets would provide.  Dubuque is only 90 mins away and seems to be a nice city.

Hi Zach, 

What type of properties in Madison were you looking at and what side of town?

I've had some luck investing in the west side of town, but nothing near 2% (over 1% always though).

Lucas

I am, I own 2 duplexes on the fast west side of town.  @Nicholas Vandervelde hit the nail on the head, sw side and fitchburg are probably the best areas, north side may have some appeal as well.

Typically seeing slightly better than the 1% rule for properties.  As mentioned, vacancy rate is fantastic and I am able to cash flow with traditional financing (25% down, 30yr mtg).  Appreciation could probably also be considered, but I don't factor that in.

Hi George,

I've been through this just a year ago, here's my insight.

The sec. deposit is factored into the HUD statement at closing. So if you're buying a duplex that is rented out, the amount you bring to closing will be reduced by the amount of the security deposits.

No problem asking questions - I also use the inspection time to ask questions if the tenants are there...I usually ask about outstanding maintenance requests and/or problems they've had and the tenants are almost always more than willing to spill everything they know.

Not sure about finding out about moving in/out during the spring...if they move out you could be more selective about who you let in there next spring though (family vs. students).

Yes, although I don't personally see a problem with this, I think it's more of a etiquette thing.

25% down is what I do...based on this i'm assuming you're doing conventional financing. It takes me a year to build this back up for the next one, but for a long term strategy I feel really good about having 25% equity minimum starting out...the odds of my little empire falling apart feel lower than if I had 0, or 3, or 5% equity in a home. If something happens and I need to sell one or more off, it's not likely that i'll be under water..you just never know. Each one you buy helps buy the next one, it snowballs fast. As far as getting a home equity loan, it wouldn't be easy on an investment property using a normal bank, they just typically won't go to 90% LTV like you could with a primary residence.

These are my experiences and thoughts as a fellow Wisconsinite, I hope this helps.

Lucas