All Forum Posts by: Marcus Gaethke

As I have been growing my investment portfolio I have had multiple friends and family approach me about investing together.  My business partner and I have decided we would like to invest in an apartment by syndicating funds [under506(b)] with friends and family.  I am unsure of the actual financials of each of the potential investors and would not want to deny them the opportunity do to them not being accredited.  I know that in order to be sophisticated you can either be accredited or "have sufficient knowledge and experience in financial and business matters".  How do you determine that the person "has sufficient knowledge and experience in financial and business matters"?

 Taxes and insurance are accounted for in the mortgage costs since I escrow them.  There are no major repairs needed although I probably should renovate the bathroom.  The roof is about 10 years old and the furnace is about 7 years old.  The big  plans for us is to move into something with a better layout, our market is going crazy right now so we would need to buy in the 400-500k range, we owe about 170 on our current mortgage and we would list at about 270.

My current residence has a mortgage that costs ~1,100 per month, I can rent the property for a minimum of 2,000 possibly 2,200.  Should I rent this out and get a new property or should I sell and cash out ~80-90k?

Hello all - Thanks in advance,

I have a tenant that moved in in September and I made the rookie mistake of looking past some red flags that occurred right before move in (I know, foolish).  Now this tenant is allowing many people on the property (5-15 people daily) and they hang out all day every day drinking and doing drugs on the porch.  The cops have been out to the property for disputes and I just found out there was recently a fight where one of the tenants guests hit another guest over the head with a brick amongst other fighting and the cops had to tase these people.  I asked the police to trespass these offenders from the property and they said that the tenant is allowed to have whoever they want on the property.  I have tried to reason with the tenant and they are unwilling to work with me.  I have previously spoken with my attorney and his comments on evictions in Wisconsin are that it is near impossible to evict for anything other than non-payment of rent.  They are on Section 8 so I have no problems collecting rent and I have tried to reach out to the housing authority and they have told me there is nothing they can do.  I'm at a loss right now and feel like there is nothing I can do to stop all this criminal activity from occurring on the property.

Thanks everyone for the help. 

@Charles Carillo I looked up in the court records and they have known about the court date since the 2nd of the month, they said they were "hoping they would leave before the court date" so I wouldn't say it wasn't foreseeable but I do agree it's not their fault.  I definitely do not want to acquire the property with this tenant still in it.

@Nicole Heasley Beitenman We asked the tenant when we were there ~2 weeks ago if the landlord has offered to help her in any way and she said no.  In our conversations with the listing agent, they told us that they did offer her 1k to leave and she wouldn't take it.

Hello all thanks in advance for any help. My question is, Am I being unreasonable? I am in the process of purchasing my first rental property. Everything has been going fine except the current tenants were supposed to move out and haven't yet. My closing is scheduled for tomorrow and we were just told Monday that the tenants haven't moved out and the court date is set on the same date and time we were supposed to close. The seller has asked us to agree to an extension in order for them to be able to complete the eviction process since we have in our contract that the property will be vacant or the owner will provide us with the lease and the security deposit. One unit is completely ready to rent and I had showings lined up to turn around and have it rented by the 1st of June ($1,025). The other unit needs a minor-moderate rehab which I had a contractor lined up to work through the holiday to turn the unit around within the first week of June (rent will be 1,250), additionally I took extra days off work to be able to get in and do work myself. I told my realtor to ask for $2,000 in buyer credits at close for us to extend since I am going to be loosing more than that. They turned around and said, "the way the offer is written we can give you the security deposit and lease and close anyway" I don't believe that they can give me lease since they already served the tenants that they weren't renewing the lease and are in the process of a court eviction. Am I being unreasonable sticking to the $2K in buyer credits at closing? The other thing is that once rehabbed I should cashflow ~750 per month using the calculator ~1,300 after PITI. This property is probably a C class property in a D class neighborhood.

@Weng L.

My local credit union is offering this in Wisconsin.  Educators Credit Union is their name. The rate for an investment property is 1% over the stated rate.

@Nicole Heasley Beitenman, @Stephanie P., @Jonathan R McLaughlin, @Brian Miller, @Weng L.

Thank you all for your helpful feedback.

@Scott E., @Stephanie P., @Ned Carey, Thank you for your replies.  My long term strategy would be to hold for the long term but my thinking was that worse case scenario the interest rate would increase past the 30 year fixed at year 8 to which I could refinance, sell and possibly 1031 exchange to a newer/better property.  My primary issue with the 30 year fixed is the cash to close.  I can make that number work however it would eat into my reserves a decent amount.