All Forum Posts by: Mayson Madden

@Rob Gillespie Yes the tenant plows for the others.

What does back drag mean? Could I look it up through google?

Mediation, just comes with the territory lol.

@John Teachout Thanks for the heads up. I know of 1 inch risers that lift the blower up to prevent the gravel from being shot up. Sounds like I'll have to have a talk about how to use the snow blower correctly after I figure it out.

The property has a gravel parking space. One of the tenants plows the area which ends up shooting some gravel over to the neighbors yard and on top of their small garage. The neighbors have reached out stating they are worried about damages to retaining wall, roof of their garage, and cleaning up the gravel in their yard. I will be reaching back out to the neighbors, but I am not sure what steps I should take.

Try talking with the tenant that handles snow removal, attempting to not have a snow plower shoot the gravel with some adjustments and add ons, what are some things to do?
Where can I look up rules and regulations for this kind of situation?

What have others done in this type of situation?

@John Mocker Do home inspections cover those types of issues you mentioned? No current tenant has a dog.

@Terry Lao can I ask you for a way figure out how to get a home warranty or where to start looking? Especially for Wisconsin winters, that could be a life saver.

@Brock Mogensen I am glad to hear that! My hope is to start working on it as soon as I move in. If I could ask, do you have any suggestions on things that catch the eyes of South Milwaukee tenants?

@David Mo thank you! I actually have a post about it all. 

https://www.biggerpockets.com/...

That's the link with almost all the information on it.

Finding it- Using MLS and an agent recommended through the VA.

In short Cash flow around $400. I do not like to use that term because I don't plan on using it other than a reserve for the property and then straight into a second down payment for the next.

@David Mo I also graduated this past December and have plans to follow exactly what you said! The landlord class everyone is mentioning can be found by googling "Milwaukee Landlord class." It links you to a sign up on the right side of the screen. It is online only but is extremely easy to do. I signed up for it yesterday actually which will be June 9th while there is another later in June.

I had been in analysis paralysis for nearly 6 months before I finally decided to pull the trigger. Keeping in mind that even if it doesn't go perfectly at first, it's a learning experience. With that being said, the market is extremely hot. Some of the properties on the MLS were gone within 5 days. Others had offers 20K higher than asking. With that being said, I have had an offer accepted recently and feel really good about the deal.

I personally wanted a small fixer upper as a starter for experience sake. Being new to the investing world is exciting and also terrifying. I am happy to see others seeing down the road freedom and opportunities real estate offers.

@Tim Herman When the numbers are right in front of me it makes it a lot easier to decide. 

@Matthew Meunier Electricity is the only utility tenants pay currently. I am considering working on my own lease to include a split between all units for the other utilities. That is a fantastic idea that will definitely be used.

*Offer was accepted* 
Already looking for a home inspector.

The appraisal follows.

3 of the tenants are month to month which is good because I want to live there. Does anyone have a recommended attorney that could help write up a lease and all other types of documentation? Some people prefer to write their own, but I do not want to risk it when just starting out. I do have "The book on Managing Rental Properties" and all of forms in it. I was thinking of using them as a starting point. Any suggestions continuing forward?

Also, to all of you Tim, Matthew, and @Jeremy Trad, you have already provided me with exceptional insights and I am grateful and thankful to you. Thank you for your time and words so far.

@Jeremy Trad

Thanks for the info Jeremy!

Is the reason for commercial insurance because of 4 units or does that apply to all types of Multi-families?

@Tim Herman That reserve idea you have is a wallet saver. Thanks for that heads up. Do you use the soft costs and cash flow to build up the reserve right away? 

I've entertained the idea of paying off the mortgage as fast as possible, but I can't imagine myself keeping it through the 30 year loan.

@Tim Herman This is exactly what I was looking hoping for. Thank you for replying with in depth information. I am going to try to see if I am following your explanation.

Mortgage Payment does include Taxes and Reserves. However, I did not factor in property taxes which are rounding up $3,800. So I should include that into the monthly factor as well?

Making sure I understand, I would take my added up rent $2,200 and multiply by 23% 

2,200 x .23= 506 a month towards, 

Vacancy 8%-$41 

Repairs 5%-$25

Capex 10% - $51(which is the roof, Furnace, water heater, floor, kitchen and bath appliances). Would it be wise to break these into even specifics for each type of appliance?

Yes at some point I will be using property management, however, before that step, I want to learn the basics of land lording. Milwaukee is a diverse area in Wisconsin, so having exposure to tenants will help me grow.

Also Tom, rents are under market by nearly $100, how should I address that? Any sort of recommendations?