All Forum Posts by: Marcus Gaethke

Hello Bigger Pockets - Thanks in advance for any advice

I am currently looking to get approved for a loan for a small multi-family (2-4 units) and am having difficulties finding lenders that will do a 30 year fixed with 20% down. Everyone I have spoken to is requiring 25% down. I have spoken with my local credit union and they allow 20% down on a 5/1 ARM (1/1/8) for investment properties. Below is the breakdown of the 2 options and it really seems like doing the 5/1 ARM is the preferred option but would like some advice and is there anything to worry about with an ARM that you wouldn't normally think about.

30 Year Fixed Rate:

Cost: $140,000 

Rate: 5.75%

Loan amount: $105,000

Down payment: $35,000

Origination fees: $1,995

Discount Points: $2,100

Cash to Close: ~$42,038

5/1 ARM:

Cost: $140,000

Rate: 3.5% for 5 years increasing by a max of 1% annually and the rate cannot exceed 11.5%

Loan amount: $112,000

Down Payment: $28,000

Origination fees: $1,800

Discount Points: $0

Cash to Close: ~$32,943

Hi everyone,

I am from Southeast Wisconsin and am trying to get into rental properties.  My business partner lives in the Minneapolis area so we were thinking about getting into short term rental properties in the Dells/Lake Delton area (pretty close to a middle ground area).  We looked at a property that has a few cottages for student housing that we were thinking about rehabbing to change to Airbnb type housing.  Does anyone have any insight into the market?  It looks like the Dells took a big hit during COVID.  Any help/knowledge of the area is appreciated.

Thanks

Following this post.  Was thinking about starting up bookkeeping as well specializing in real estate investors.

@Jeff Brower this is awesome, great post

Hi everyone, my name is marcus from Burlington, Wisconsin. I would like to get into buying rental property to eventually build enough cash flow so I don’t need to work but can if I want. I have a passion for flying which is not a cheap hobby. I do not have enough savings yet but am working on building that. On here to learn as much as I can so when I do have enough saved up I can hit the ground running. Nice to see everyone on here and thanks for all the info I have learned and will learn through this website.