All Forum Posts by: Mark Strobel

Welcome to Central Wisconsin @Mitch Kennedy!

I'm in the Wausau area and invest in SFR and MFR properties. If you get to the area, let me know and we can grab coffee.

@Eric Schmid - Hi Eric!  We haven't used a wholesaler in the Wausau area, but we are always looking for new opportunities.

Hey Travis! I saw your post regarding getting started in the Wausau area. I'd be happy to talk with you about our experiences in this market. We are in Weston, but have properties in Wausau, Schofield, Mosinee, as well as Weston.

@Russ M.  This has been a question that I have been pondering as well.  Gov. Evers' Emergency Order No. 15 bans all evictions and foreclosures until May 26, 2020; however, Item 5 of the EO explicitly states that this order does not affect Wis. Stat. §704.25.  This basically allows removal of a tenant that holds over after the end of a lease, unless the landlord accepts rent payments during the holdover period.

We are trying very hard to work with each tenant whose income has been affected by the COVID-19 emergency; however, there are a few tenants that were already behind before the EO was published and we were considering evicting them prior to the EO.

One concern is that tenants will view this order as government permission to not pay rent.  Of course this will place the tenant in even more jeopardy once the eviction ban is lifted.  To plan for this possibility, we are considering moving all leases that come up for renewal in this period to month-to-month until the emergency passes, at which time, we will offer them a new lease.  If their income is not impacted by COVID-19 and they are choosing to not pay rent, we may give them a 28-day notice that their tenancy will end at the end of the following month.  This strategy may give us the opportunity to evict under 704.25 if necessary.

In today's market, that seems very good; however, I would take a very very close look at maintenance. Generally I have found deals like you describe have a significant amount of deferred maintenance and CapEx.

There is no such thing as a non-refundable deposit in Wisconsin.  However, you can certainly charge a non-refundable fee.  Just don't include the word "deposit" in the description or title.  We call it a non-refundable Pet Accommodation Fee.  

We also require that all of our tenants (pet owners or not) have Renters Liability Insurance and that dog owners have liability coverage for dog bites.  In addition, we require that all pets be spayed/neutered and they must provide proof of rabies vaccination and local municipality pet licensing.  Having those general rules will usually ensure that you get only responsible pet owners.

We give our tenants the option of paying an annual Pet Accommodation Fee or a monthly Pet Accommodation Fee.  The annual fee is equal to 10 months and is non-prorated if they leave within the year.

 @Austin Fogt

We have been in the Wausau market for several years.  On the face of it, your deal sounds pretty good.

You can also download the pdf copy of the tax bill for the past 5 or 6 years, which lists the property owner's name and mailing address.

Thanks Peter!  The Wausau (and area) police are finally becoming aware of this change as they informed me about it not long ago.  I'm now embarrassed that I didn't share it.  Kudos to you for your willingness to put it out there!

I agree with @Steven Picker.  How long has the bankruptcy rate been high?  Have you asked a local banker or realtor for their thoughts?  The reason is undoubtedly market driven.  I would be interested in finding out what you learn!