All Forum Posts by: Account Closed

Thanks Will and Greg for your responses. These are both really helpful. 

Justin,

Congrats on your recent successes! I reside in Sun Prairie and would be interested in connecting if there are any deals that your looking at in the near future that you'd want an equity partner for. Have a great weekend.

Regards,

Matthias Smith 

Hello BP Community,

I am currently under contract to purchase a nine unit multifamily property which includes an 8 unit apartment complex and a single family home.

Early last week, I received the inspection report back from the property inspector. The report identified the roof having minimal useful life remaining, the boiler for the apartment complex being towards the end of its useful life, and also negative grading for the apartment complex, resulting in water running towards the foundation instead of away from it. 

I reached out to obtain quotes from contractors for the cost of replacing the roofs on the property, and the cost for obtaining a new boiler. I haven't heard back yet on the boiler quote, but the one for new roofs came in at $35,000.

I put together an amendment to the purchase agreement requesting that the seller provide me a credit for the cost of new roofs, and sent it yesterday for his approval. The response that I got back from him was that he intended to reject the amendment since there are other interested parties on the property.

From experience with buying investment properties when something substantial comes up for capital expenditure items like roofs being at the end of their useful life, is the request that I made a reasonable one? I'm trying to determine how to navigate this to come to agreement but my thought is that some sort of credit is reasonable to ask for. Thanks for any input or advice. 

Thanks everyone for the helpful feedback on my question. After reading through each of the responses, I am definitely leaning towards having the snow removal and landscaping outsourced to a professional vendor to mitigate risk. 

Hello,

I am currently under contract on a 9 unit apartment building in Green Lake, WI that includes a single family home that is a rental in addition to an 8 unit apartment complex.

The tenant in the single family home currently does snow removal and lawn care, but from speaking with the seller and doing market research, the rent is currently under market for the house relative to comparable properties. I'm trying to decide if I should keep the current arrangement in place with the snow removal and landscaping and have the tenant pay below market rent or if I should have these services taken care of by a professional company and bring rent up to market.

I'm curious if other investors have come across this situation before and how you made a decision on the best way to proceed. Thanks for any inputs and comments.

Thanks,

Matthias 

Hello,

I have recently decided that I want to purchase a 2 to 4 unit multi-family property either in and around the Madison, WI MSA or within a 30 minute drive from the City.

This acquisition would be my first direct real estate investment, and I want to make sure that it goes well, and that I purchase in the right market. 

As a new investor, I want to make sure that I complete as much due diligence as possible prior to writing an offer to purchase to avoid any surprises that might come up, after I am committed towards a purchase. 

I had some questions that I wanted to ask members of the community, some of which would be specific to Madison, WI and Dane County, WI investors:

(1) What types of due diligence related documents is it standard to expect a seller of a property to share up front prior to writing an offer to purchase on a property (for example: lease agreements, a recent P&L statement, etc?)

(2) What are the standard key metrics that are used for comparing 2 to 4 family investment properties to each other, for the best apples to apples comparison?

(3) Which banks in the Madison, WI and Dane County, WI area offer the most favorable financing terms to investors? 

(4) For an investor that doesn't have a real estate license, does it make sense to work with a residential buyer agent for finding 1 to 4 family investment properties, or would a commercial broker be the best way to go?

Thanks for sharing any valued advice, thoughts, and feedback, as I explore the best options for my first direct real estate investment opportunity. I appreciate any and all thoughts and input.

Cheers,

Matthias