All Forum Posts by: Mayson Madden

• For Starters
  
• First off, BiggerPockets is an amazing site. I have been one of those lurkers everyday while listening podcast after podcast for almost a year now. Started taking the advice of Brandon and Josh and communicating on the forums more, bought books and have been reading like a college kid cramming for an exam, started specifically going onto the site to learn a specific thing every day and finally decided it was time to stop renting. With that being said, I am excited to hear from everyone and anyone. Just a couple of things I would like on the post. 
  
  
• Guidelines
  
• Nobody likes to get all negative stuff or all positive. Basically, if you can, give the flip side to a statement so I and everyone reading can see both perspectives.
• I am more than open to Direct Messages. I actually would love them.
• This is a post to help keep my mind in business mode instead of home owner mode. This is a investment for my future and how I view things should be from that perspective.
  
  
• The Briefing
• Using a VA home loan, offer, counter offer, and (hopefully) acceptance for a 4-plex in South Milwaukee with the hopes no one jumping in and beating me, I'll have my first home to live in while living rent free. We have contingencies in place to see all of the units (I have seen 2 so far) as well as the inspection and appraisal still to come.

Details of Property

Had previous offer, financing fell through, came back onto market.

Asking price $225,000,

 1958sqft, 1 bed per unit, 1 bath per unit, 1 living room per unit, 2 story 

Built in 1922, rubber roof, aluminum exterior, 1 furnace (1995), 1 water heater(not sure on year), 1 water storage tank (was listed on condition report), units are definitely dated and could use some nice touching up (which I plan on doing myself to get some experience). Basement would not blow anyone away, but definitely fits into the 1922 built year type.

Questions- What does this look like to a more experienced investor? What are things I should be considering and be wary of? What are things I should be excited about that novices do not notice?

Current Tenants and Rents

My current rent is $567

Currently have a tenant with his wife who has been the caretaker for 15 years on a term lease till April at $535

Other rents all month to month at $580, $550, $535 total of $2,200 month ( 1 of which I will be taking over so subtract 580) for $1,620 monthly. Anticipated mortgage $1,212,         1620-1212= $408 

Questions - Rentometer says all of the rents are on the very low side, comps have been around $675, how should I work with this? The extra $408 is planned on being saved in case something goes wrong and unexpected or is there something I should be looking to do with it?

Plans

I have $10,000 set aside specifically for improving the place.

Live in for a year or so, try to save as much as possible while working, then move out and rent my current spot, build the portfolio. I am currently trying to network more and more. 

Make sure I have all documentation prepared and legal, basically everything in Managing Rental Properties (I would like to have some references for good attourneys). This is to make systemization and ease with moving forward and having a good foundation to always use.

Additionally

If there is more information that I should provide or that you are looking for that could make this better please let me know. I am excited as all heck to get out of the analysis paralysis. Which is something I believe is a terrible thing, so much so, I am more willing to fail a couple of times then never get started. Which is very hard for my family and friends to wrap their heads around (they have the bad landlord, bad investment, it will go wrong mindset). I prefer to think of it as a great starting point and learning opportunity. Lastly, thanks for reading this and if you do have advice thanks in advance. This process of buying homes is extremely enjoyable even in this ridiculously competitive market, writing this post is scarier. 

Hi @Jacob D Itzenheiser, I just picked up the book on BRRRR and was wondering what made you decided to come back to Milwaukee (I am a green horn with no experience)? I'll be following this post without a doubt for a while so thanks for posting this, it was literally perfect timing.

@Marcus Auerbach you always have very insightful posts and responses and I always look for your comments when it comes to anything in South Eastern Wisconsin. I would really like to hear your opinion on what the Supreme Court case will have on our market.

Michelle Martin- That was a huge thing to mention that I HAD NO IDEA ABOUT. I am talking about the Landlording class. Never crossed my mind to look into something like that. Thanks a ton. Also, Kendal, have you thought about a First time home buyer loan? Also, I do not have Navy Federal as my bank but I do know they match anything you can find. Keep that in mind!

@Cole Holloway Great post, was scrolling along and made the decision to read this. This is awesome stuff. @James Orr- Those charts you have for the tax rates.. Where did you get them? Those are very useful, as I am currently in Wisconsin looking for my first purchase.

@Marcus Auerbach- I will definitely ask you some questions! Thank you for taking the time to respond.

@Rebecca Knox- That sounds really interesting, I am going to look today. 

@Corina Eufinger- Thank you for the book recommendation, I've got a ton to start reading since getting on this website. When you say "properly evaluate" are these some of the things I can learn through Bigger Pockets?

Thanks again for everyone taking the time to respond to my post. It is very reassuring knowing people do pay attention and  a responsive community.

@Account Closed- Thanks for the response! You reaffirmed what I am doing. It's a lot of fun going onto this website and seeing what everyone has to say. I'm still shocked that this website exists.

@Nick Peters- That is a ton of stuff to keep me busy! I really appreciate you making really easy to follow. Thank you.

The background-

I'm a USAF veteran that graduated this past December from college. I reside in Milwaukee Wisconsin. Since then, I've been searching for a job a little longer than I was hoping, I decided I needed to continue educating myself. I currently started classes for a Wisconsin real estate license. Long story short, I ended up on BiggerPockets. I absolutely love this site and everything it has to offer except it's information over load. I've been on the site reading and listening to the podcasts but I'm like a deer in headlights.

The question(s)- Where do I start? What should a person read first? What things do you wish you knew right away? Words of advice? What are good ways to get my foot in the door in my local area? What other questions should I be asking?

I wanted to give a shout out to this entire community. It's refreshing to see so many people looking to help one another.