All Forum Posts by: Nathan Regina

@Devyn Caraballo Hi there! Milwaukee is really a group of burroughs verses one big city. Areas to research are Harambee, Riverwest, Bay View, and many others. Milwaukee is very hit or miss, a lot of houses have major foundation issues and I rarely have seen basements that could ever be finished. I closed my first deal a month ago and that was after touring around 40 to 50 properties. Let me know if you need help. I would just Google “Milwaukee Neighborhoods” and go from there.

@Mike Doney I would be interested, where is the link?

Hi Nathan, another Nathan here. I just closed on a rental property this past week after going through the same process you are going through. It is possible to do what you are saying but I ended up using cash to put 15% down on a property verse the FHA loan. The requirements seemed strict and you HAVE to live there for 12 months or establish it as your primary residence.

The other issue, that has been referenced above, it the amount of repairs a seller must take on. If you are purchasing a duplex or multifamily home there is a chance you will buy it from a seller that has multiple units. But the seller either has to be handy or connected to many people who are handy. My investment property required a new water heater, new HVAC venting, upstairs deck replacement, and a toilet replacement, that was just to get up to code. If I had done an FHA loan the repair list would have been even longer (banisters, locks, door replacement, repainting, and more).

@Benjamin Beyer congrats! Bayview is a great area with strong rents. How many units is the building?

@Zachary Ray what sorts of services would they claim to perform but not be able to?

Here in Milwaukee many multi-family units have regular pest issues. Bed bugs, roaches, and other pests. I have seen pest control companies posting maintenance plans but I have not worked with that before. I was wondering what other investors are doing and if any of you could shed some light on this for a newbie like me. My goal is to be proactive with any issues that I can partially or completely control.

@Pete Woelfel the property is near Brewers Hill about 10 minutes from downtown.

 Thanks, numbers added up nicely and the property has really really good bones. 

Hi @Nick Robinson, thank you so much its really exciting and scary. I will be living in the upstairs duplex, the lower is currently rented for $665 which covers almost all my expenses. I targeted this area as many properties match the 1% rule and we're built in the 1900's to 1920's and have fantastic foundations here in Milwaukee. My goal is to purchase my next investment property in six to twelve months and start my BRRR process using my savings and remaining cash.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Milwaukee.

Purchase price: $86,000
Cash invested: $5,000

Duplex in Milwaukee, WI that needed minor repairs.

What made you interested in investing in this type of deal?

I was looking for a property that met my 1% requirement and also would have an ROI over 50% even after repairs.

How did you find this deal and how did you negotiate it?

I found it through a connection who is a realtor and owns multi-family real estate. I looked at the property and offered 6% below, per my connections advice, the seller settled 3% below ask.

How did you finance this deal?

Traditional 30 year fixed rate mortgage through a local credit union.

How did you add value to the deal?

Not sure that I did, still learning a lot.

Lessons learned? Challenges?

I just closed on the property so I am still waiting to see how things go.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Absolutely, Paul McKenna of McKenna Real Estate, he is expert in multi-family purchases.