All Forum Posts by: Marc Kenyon

We did exactly what @Scott Trench recommends - put as much sweat equity as possible into the reno, search for as many deals on FB marketplace and shop local sales/swap meets/garage sales, and minimize the hit to the credit card. However, to answer your question @Brady D'Hont, we did finance much of the retail costs on our credit card. We maintained our W-2, or as David Greene puts it - our "capital generator" and paid off our credit card as quickly as possible (<3 months). We had extensive repairs to the subfloor and went pretty much down to the studs, yet were able to keep our costs under 12K, even with furnishings. It is possible to do what you are contemplating, but do take care and have a plan to pay off your cc balances as quickly as possible. 

Thanks @Matthew Paul. 

Thanks for commenting Matthew. I'm curious why you say this. I believe your perspective, I'm just wanting to learn from your experiences what led you to this conclusion. Is it that homeowners are willing to pay more, or that there are simply more homeowners and thus it's a matter of scale, or is it something else? I appreciate you making time to comment. - Cheers

Yes Phil - Stevens Point area and essentially a 1 hour drive from there would be my service area (Wausau, Waupaca, New London, Wisconsin Rapids, etc). Some of my REI friends have noticed this trend of busy contractors and not returning phone calls. Conversations I've had with them helped me build this idea. And thanks for your support!

@Mithursann Revilo - great points and I really appreciate your support in this endeavor. There are some REIA meetups locally, so I'll definitely plug into those. I'm not sure about TikTok, but maybe my kids can help me out with that.

@Marcus Auerbach - Facebook and follow-through. Great advice - thank you!

 Thanks Tom. Great point. I've already started the required steps for getting the license and am open to ideas for good insurance companies for this type of work. 

Good afternoon BP community! After about a year of dipping my toes into real estate investing (purchased one duplex, renovated one half and listing it for MTR while LTR the other unit), I'm strongly contemplating starting up my own Handyman and Home Renovation Business serving Central Wisconsin. 

Our niche will primarily be serving real estate investors and agents and their clients by doing handyman jobs for fixing up rentals, getting a property ready for sale, addressing inspection findings either before or after a sale, and renovating kitchens, baths or whatever for anyone that wants some quality work done.

A little about me: I've 25+ years of experience with home construction - not as a contractor, but as an 'old-timey' kind of guy who knows how to fix things. In addition to helping my handyman grandfather when I was younger, my wife and I have completed four live-in flips over the years. I spent a couple years while in the military on a team to renovate the building my unit was using (25,000 sq.ft. building with offices, restrooms, etc.). I've helped numerous friends with their home renovation projects, from concrete to decks, to windows, siding, roofing; the list goes on. And unlike work (which IS a four-letter word) at my W-2 job, I genuinely enjoy building and fixing things. I also like helping people. 

Just posting today to get my name out there and see if the BP community has any advice on servicing this niche. 

Do you think it's a tenable idea? 

How would I build a clientele? 

What are potential pitfalls? 

How to market quality over quantity?

How would you start up a business like this?

Anyway, thanks for reading and offering any advice. I'm interested to see where this conversation goes.

Cheers

Most excellent work @Justin Woodworth! Good things always happen to those who educate and then apply themselves. Keep going!

Investment Info:

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

Purchase price: $189,000
Cash invested: $40,000

I set a goal for myself to purchase my first buy-and-hold in 2022 as a first step to building wealth. This well-maintained duplex just down the street in Central Wisconsin fit the bill.

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

Just wanted to get started. Learning the processes, establishing systems (core 4) and bringing my wife along on the journey.

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

Found the deal through a good friend, fellow middle school sports coach (my son's track coach) and one of my football player's dad. I negotiated it by meeting the owner, walking through the property, analyzing the deal, and making an offer that sounded fair and would cash-flow positively out the gate. Owner accepted the offer without conditions and off we went.

How did you finance this deal?

Business loan (5-year ARM) as suggested by my loan officer.

How did you add value to the deal?

Property was rented below market. I'm working to bring one unit up to market rent (currently vacant) and will rent the other unit as a medium-term rental to traveling professionals. This will substantially elevate the NOI.

Lessons learned? Challenges?

I used this process to vet a bunch of individuals as my core 4. Some people I thought would help did not come through, but I did eventually find some great people who understand my vision, share in my goals, and genuinely want to help. These great people will continue to not only be on my team, but also great friends.

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

Noah Eschenbauch (Broker/Realtor with Home Point Real Estate in Stevens Point, WI)
Ben Hertel (Loan Officer with Prevail Bank in Marshfield, WI)

House with an underground basement next to a wetland area

Wildfire-prone areas

I second the motorcycle gang area

Foundation issues

But mostly, i agree with previous post about too many issues - single issues in and of themselves can be overcome, but cumulative issues usually don't pencil out, unless the price is right!