All Forum Posts by: Michael Braatz

thank you very much for the response! 

I really appreciate it.

Hello all,

I am looking at a property and have some time constraints.  In order to bid properly I need someone to look at  the basement(foundation) of the property last minute.  Gaidish Foundation Inc is able to come out tomorrow morning.  That being said I have no experience in working with contractors yet and I have no knowledge about this company.  

I was wondering if anyone had worked with them here in the Milwaukee area.  I would appreciate any responses from anyone who has worked with them or has any useful information.

Thanks,

Mike 

@Chris Mason

I apologize, I may have left out some key information on my original post.  One of my partners will be owner occupying for a year(I'm guessing that may have some impact on the rate?).  I left that out because there are a few complicated things going on in this deal that if it works out...I would like to throw out a "my first deal" story with some relatively interesting info.

@Henry J. @Chris Mason

I double checked with my lender he says no typo and added that these type of offerings are very typical.

Thanks for the response @Amy Kendall.  I am leaning towards the 15% down.  How is the interest rate on the 10% compared to the other loan options you had available? 

@Chris Mason  I'll double check with him!

Hi Chris,

1) $65,000 purchase with 15% down ($9750) at 4.625% on $55,250 = $284/mo plus mortgage insurance of $13 = $297

2) $65,000 purchase with 20% down ($13,000) at 4.75% on $52,000 = $271/mo

Taken directly from an email sent by my lender

Hey all,

My partners and I are working through our first offer currently and two options we have through a conventional mortage are 15% or 20% down.

I realize that the decision will most likely be a subjective one, but I would like to get some opinions on which option you would choose and the reasoning behind it.

15% down ($9,750) 4.625%, pmi = $13/month, $297/month mort+ins,  $300 cash flow/month

20% down ($3,000) 4.75%, $271/month mortgage.   $275 cash flow/month

My thinking;

We would most likely not pick up another property for upwards of a year or more.  In one year with the 15% we would save about $2,950  in cash.  Our limiting factor for traditional financing is cash on hand for downpayment.  We are generally looking for properties in the 60-100k range.  The question I keep asking myself is will that slowly decaying $3k in cash saved jumpstart our next properties fast enough to outweigh the slightly higher cost longterm.

Thanks in advance!

Mike

@Chris T.

I'm having a hard time finding a good amount of decent comps, but the 4 bed 2 baths (our duplex is 2 x 2/1) are going for around 140k.  In my limited experience I am not sure exactly how to compensate for a duplex as compered to a sfr.

@Nick B.

Thanks for the info!  We plan on putting in a new roof and HVAC.  The upper is in good shape just needs a couple windows.  The lower will need new flooring and Bath as well as some other misc things.

Hi all,

The details of the deal:

Southeastern Wisconsin--duplex

$70,000 Asking price(sounds likely to get for less, but I'm working off 70k) 20% down.

$29,000 rehab+closing

2 car garage + 2 slab parking spots

$1600/month rent

$200/month Capex

$75/month water

$125/month repair

$50/month insurance

$3700/year tax

5% vacancy

10% management(though we will be self managing)

$326 cash flow, 10.8% IRR

Let me know how my numbers sound, and throw me any corrections and advice!

Thanks,

Mike

@Michael S.

Thanks you very much!