All Forum Posts by: Nick L.

Could you use refi/LoC equity from your first and second investment properties as the DP on the 4th?

There's no one trend that covers the whole of the Midwest, any more than there is a trend that unites Maine, Georgia and California.

Generally speaking, many midwest markets do not expect to see great appreciation. So yes, properties have to sell for lower prices to allow profit through cash flow. But there are always regional, local and pocket exceptions to that.

Respectfully, I think you're going to have to hone your question in order to get a useful response.

@Jack Alves If you mean suburbs, there are several current MLS listings for Cudahy and West Allis duplexes in the $60k range. If you mean near south side, there are 20 or more current listings under that price.

You cannot renegotiate the price after winning the auction. I am amazed that they released your initial funds. The downpayment is supposed to protect the seller against this type of situation.

There is all kinds of legal blurb in the contract about how they can hold you to specific performance (forcing you to close). But in practice that is not feasible and they can just withold the deposit you put down at the time of bidding.

What are you trying to get done?

If all you need is a WI weatherization certificate, the system is a joke. A home inspector takes a cursory look, gives you a certificate and charges you $100 or so. I once got one from an inspector who didn't bother to get out of his truck.

If you actually need work done, there are various programs like this. WE Energies is in partnership with another. Just call a couple and see what they can do for you.

I would do your own deal. So many things can go wrong with partners, especially if one or both occupies. 

There are lots of ways to do this. One standard model is to daisy-chain properties using capital from one to buy another. (BRRRR)

Say you put down $25k to buy a $100k house. The house appreciates in value, either because you bought it under value or the market grows. When it hits $135k, you can refi to get your original $25k out, rinse and repeat.

There are a lot of variants and wrinkles in the model. Also a lot of other models. This is a good one to start with.

Thanks all - I'm glad I didn't bid!

The same property would not be auctioned on two separate sites. Are you sure these are not sheriff's sales that are just being marketed on the sites?

@Todd Moriarty Sorry for the late reply. 

Relying on the sales approach is not a good idea. More than likely the units will not be saleable to retail purchasers due to GSE restrictions on the number of OO units. If they don't make sense as an income-based investment there is really no point in holding them.