All Forum Posts by: Nathan Yaun

If the "seller refinance evaluation" is an actual appraisal, which the bank would require to finance, I would ask for a copy.  That will give you a lot of details.  At 275 your gross rent multiplier would be about 88 which is really good.  It's around 100 here in Waukesha.  

Is there a way you can get out of paying gas and electric?  Since your paying it I'll ask.  Is this low income housing?

In WI the equipment to put the refrigerant into the unit once installed has to be registered with the state and you have to have a licence to use it.  You can by the condenser online but it won't come charged because the AA coil is a separate part that sits on the furnace.  

Does the place have ductwork already?  It's odd that they have a furnace but didn't throw on the AC when they installed it.  If the furnaces already have thermostats then they will control the AC as well.

Typically the condenser just sits outside on a slab.  They are not bolted down.  Many states don't allow scrap companies to take AC parts unless it comes with papers saying that the freon was recovered in a legal way.  Metal theives would be aware if your state has that law and will probably leave it alone.  I would call a local scrap yard to verify the laws in your  area.

There are other products if your place doesn't have ductwork already.  Mitsubishi makes a unit that heats and cools but doesn't require exisiting ducts.

I wouldn't touch this project unless you can raise rents too.  It would take forever to get your money back on this.

Take this info with a grain of salt but sites like rentometer.com can help judge current rental rates and therefore the GRM if any of those places are also on the MLS or were on there recently. The data can be out of date though or high because landlords go on there to see if their rent is to high. If your really serious you can pay an agent to do an analysis for you. It would be worth it even if you don't buy becuase the GRM that they come up with can be applied to all places in the area. A free option would be to use your sellers agent to get you the rents for the places you want to compare but the GRM will be high because the seller is planning on being talked down off the asking price. The GRMs for the Milwaukee are are between 90-105 times rent. Last but not least you can use the BP calculators.

Welcome, there a lot of Wisconsinites on BP that could answer any specific questions that you have.  Happy reading!

Welcome fellow Wisconsinite!  Let us know if you have specific questions as that is an easier way for use to spread our knowledge.

Hey Justin.  I only own Duplexes at this point.  I chose duplexes because I can pay retail prices (I didn't know any better at the time, my next one will be under retail) and still cash flow after all expenses.  My tenants pay less for rent than they would if the purchased their own house so its appealing to the Tennant.  Also, you have two income streams for one property with duplexes.  So, if one unit is vacant, you still have income that can cover most of the fixed costs while you fill the other side.  This has worked well for me.

Tennant's may take better care of a single family home because it doesn't "feel" ike a rental and they can be in non renter areas. 

Im not turned off to single family homes but the numbers seem a lot better the more units you can get onto one property.

Happy hunting!

Way to go Angie!  This part is exciting.  Now the real work begins though.  I hope it works out for you!

This thread would be a lot longer if all of us listed the mistakes that we have made in the past.  If nothing else we have all learned to be more cautious in similar circumstances.  I certainly appreciate the insight as I am considering wholesaling.

To echo a lot of others on this post, I do talk about it to those that are interested.  Mainly because I'm excited about it and want them to make smart life desicions as well. The unmotivated audience will feel like your bragging and have loads of money.  My work values an entrepreneurial workforce because they will take the initiative to get things done and make things better.  They understand that just because your motivated to better yourself outside of work doesn't mean that your not motivated to help better the  company you have your traditional job with as well.  My advice would just be to get to know your audience before you get into to much detail.   Toxic people that don't know the whole situation also tend to gossip and spread stupidity and miss information.  

Welcome fellow Wisconsinite!  It sounds like you have a solid plan.