All Forum Posts by: Steve Balinski
Steve Balinski has started 37 posts and replied 106 times.
Post: Seeking advice on a co-signer on a lease
- Roselle, IL
- Posts 107
- Votes 19
Hello everyone, I'm a small investor looking to fill a unit in my 4-unit building.
Criteria: 670+ credit, income 2x rent.
The 2 people who will be living there don't meet either, but one of their fathers is willing to co-sign, he meets all criteria favorably. I've never had a co-signer before. The 2 applicants are in their 40's, have no criminal history, bad credit, low income (not career based jobs), 1 of them has 4 collections (*All under $200 and closed out though). My fear is if they're not responsible with their credit (low dollar amount collections so I'm not looking to much into that), don't have career based jobs, are my concerns valid that they're most likely not responsible enough to live in my property? (I have pretty high standards)
Post: Contract for Private Lending
- Roselle, IL
- Posts 107
- Votes 19
Quote from @Account Closed:
Legal fees like $2K for loan documents can seem high, especially on smaller loans like $30K or $50K, but they're an important investment to protect your capital and reduce risk. For smaller loans, these fixed costs can eat into your returns, so many lenders either look for scaled legal options, use trusted standard docs, or focus on larger loans to make it worthwhile. It's all about balancing protection with deal size to ensure your ROI makes sense—if the fee feels steep, consider shopping around or increasing loan amounts to improve profitability or as another member mentioned, have it be a pass-through fee to your borrower.
I'm very curious how much people typically lend on their first deal. Clearly this depends on your nest-egg, but even if you have 500K are you comfortable lending 250K on your first lending deal? I have about 120K liquid, i wouldn't feel comfortable doing more than 80K on my first and even with that its pretty intimidating.
Post: Curious about doing JV Partnerships with General Contractors
- Roselle, IL
- Posts 107
- Votes 19
Hello everyone, I'm seeking to flip my 3rd term and trying to get more/better experiences vs my prior 2 flips. I'm trying to get to a more comfortable point where I'm more confident managing a GC on my own, but until I get that experience I'm curious of your thoughts of doing a JV Partnership with a GC. This would benefit me by not worrying as much about completion time, cost of materials and labor, they'd have some skin in the game etc.
What do you think? As a newer flipper what are the pros/cons besides me not getting 100% of the profit, I figure its cost of doing business and getting experience.
Post: Need help finding a good value contractor
- Roselle, IL
- Posts 107
- Votes 19
Hello everyone, I'm a novice flipper, I've flipped 2 homes in the past, learned a lot with the experience and have learned a lot more in my 6+ years after my last flip. I feel I'm fairly well educated on the process, but I'm struggling to find a good value contractor. I posted this on social media and got blasted pretty good. I feel my criteria below is based on what I've learned/watched in my 10yrs+ of learning about real estate and participating in live meetups and watching 1000's of hours of youtube videos.
I'm not looking for the cheapest, I'm also not looking to pay full retail as most flippers don't, otherwise being profitable becomes much more difficult. Any contractor who fits this criteria typically won't be "cheap" anyways.
Based on past experiences I've learned the min. criteria is:
-Need a business website (partially for reviews if things go wrong - accountability)
-Needs an active company registered with SOC
-Registered address can't be a personal residence
-Needs a professional business VM
-Licensed and insured
-Accepts checks or CC
What are the suggested ways to find a good value contractor?
Post: Looking for feedback on Private money club with Chris Naugle
- Roselle, IL
- Posts 107
- Votes 19
Quote from @Doug Anderson:
@Steve Balinski have you looked into the kenosha landlord association?
no, didn't know that existed. I'll look into it, good tip!
Post: Curious what you all think of this property, Duplex in SE Wisconsin
- Roselle, IL
- Posts 107
- Votes 19
Quote from @Jaycee Greene:
Quote from @Steve Balinski:
Quote from @Jaycee Greene:
Quote from @Steve Balinski:
Quote from @Jaycee Greene:
Quote from @Steve Balinski:
Hi Everyone, curious of your thoughts on this property. I use an excel property analyzer which I'm pretty comfortable using at this point. I bundle all expenses after taxes/insurance/mortgage into row 18 (maintenance). (see attached images)
Here are my dilemmas and things im considering
Built in 1910 (seems in decent shape though). Basement is cinder block, but in good shape, none are crumbling. Until I get an inspection I'm trying to be optimistic
Each unit is a smaller 2/1, pictures indicate the bathrooms are pretty tight/narrow. Overall in good shape, I'd have to drop maybe 2-3K getting both units rent ready. No room for increasing rent at its current prices.
There is a 3 car garage which could be a game changer, if I could rent that for another 400 per month as storage, my cashflow is excellent.
***I'd have to put 30% down which would run me dry from any further investments for at least 5 years until I save more through my rental property income (I own 2 others).
7.5% interest rate. If rates drop and I can refinance, cashflow would only increase. If rates drop and I refinance AND I can rent the garage for storage I'd be at 1000+/month cashflow.
I have the option to buy down a point or two as well on the rate.
Purchase 275,000
Rent 2400 (2800 if garage is rented for storage for $400/mo)
Insurance 1200
Taxes 3000
Maintenance/Capex 2000
7.5% rate @30 yrs
30% Down (82,500)
Cashflow $420 (820 if garage can be rented for storage)
@Steve Balinski what's the zip code for the duplex?
53143
@Steve Balinski For what it's worth, a Section 8 tenant would pay $1,460 a month for a 2 BR unit in that zip code. Also, 30% down seems a little high - most lenders I work with would look at 20% to 25%, assuming no rehab.
I'd intentionally pay the 30% in order to make it cashflow. Good to know on the section 8, that would be HUGE
@Steve Balinski While it might cash flow, it negatively affects your returns. What is the minimum return you're targeting? Have you run a proforma on this?
Yes, my calculator does it all. As is, COC is 5.5% but that can be increased to 8% if I can rent the garage, and 11% if rates drop to 6%. Long story short, I saw it yesterday and passed due to the condition of the basement. Built in 1910, basement was scary, hard pass.
Post: Curious what you all think of this property, Duplex in SE Wisconsin
- Roselle, IL
- Posts 107
- Votes 19
Quote from @Jaycee Greene:
Quote from @Steve Balinski:
Quote from @Jaycee Greene:
Quote from @Steve Balinski:
Hi Everyone, curious of your thoughts on this property. I use an excel property analyzer which I'm pretty comfortable using at this point. I bundle all expenses after taxes/insurance/mortgage into row 18 (maintenance). (see attached images)
Here are my dilemmas and things im considering
Built in 1910 (seems in decent shape though). Basement is cinder block, but in good shape, none are crumbling. Until I get an inspection I'm trying to be optimistic
Each unit is a smaller 2/1, pictures indicate the bathrooms are pretty tight/narrow. Overall in good shape, I'd have to drop maybe 2-3K getting both units rent ready. No room for increasing rent at its current prices.
There is a 3 car garage which could be a game changer, if I could rent that for another 400 per month as storage, my cashflow is excellent.
***I'd have to put 30% down which would run me dry from any further investments for at least 5 years until I save more through my rental property income (I own 2 others).
7.5% interest rate. If rates drop and I can refinance, cashflow would only increase. If rates drop and I refinance AND I can rent the garage for storage I'd be at 1000+/month cashflow.
I have the option to buy down a point or two as well on the rate.
Purchase 275,000
Rent 2400 (2800 if garage is rented for storage for $400/mo)
Insurance 1200
Taxes 3000
Maintenance/Capex 2000
7.5% rate @30 yrs
30% Down (82,500)
Cashflow $420 (820 if garage can be rented for storage)
@Steve Balinski what's the zip code for the duplex?
53143
@Steve Balinski For what it's worth, a Section 8 tenant would pay $1,460 a month for a 2 BR unit in that zip code. Also, 30% down seems a little high - most lenders I work with would look at 20% to 25%, assuming no rehab.
I'd intentionally pay the 30% in order to make it cashflow. Good to know on the section 8, that would be HUGE
Post: Curious what you all think of this property, Duplex in SE Wisconsin
- Roselle, IL
- Posts 107
- Votes 19
Quote from @Marcus Auerbach:
Several red flags, the first one is asking price - anything under 300k in 2025 in the Milwaukee area is either distressed or in a bad area or both. As far as optimistic until you get an inspection, you need to have a good idea about your total rehab budget before you make an offer. Inspection should only confirm what you and your agent had already found, at least the big stuff.
Most duplxes require 25k per unit and up to 50k for roof, siding, windows if necessary. You can't do anything with 2-3k in a bathroom. It's either under 1k or over 6k - there is concrete with chicken wire under the penny tile. Renting the garage will maybe get you $50 per bay. I just refinanced a commercial loan at 6.25% as a 10/10yrs.
The size will limut rents. Square footage is more important than number of (tiny) bedrooms. I bought my first duplex in 2009 and made that mistake to buy the smaller of the two a 2/1 with 1600 sqft total, could have bought a 2400 sqft for just a little more. Was never able to get rents up, even after full rehab. Better to buy a property with more square footage, the financial model works better, as the tiny one has the same expenses, but lower rents - for example: water heater costs the same regardless if your rent is 800 or 1600.
Regarding "rehab budget", this is for a rental, not a flip. I don't see much required to get it rent ready for the 1 unit I'll have to prepare. Paint, maybe some new light fixtures, some low item updating etc. I can do bathrooms for $1500 (upgrade, not replace all), new floor, vanity, medicine cabinet, paint. Has newer roof, HVAC and furnace.
Post: Curious what you all think of this property, Duplex in SE Wisconsin
- Roselle, IL
- Posts 107
- Votes 19
Quote from @Jaycee Greene:
Quote from @Steve Balinski:
Hi Everyone, curious of your thoughts on this property. I use an excel property analyzer which I'm pretty comfortable using at this point. I bundle all expenses after taxes/insurance/mortgage into row 18 (maintenance). (see attached images)
Here are my dilemmas and things im considering
Built in 1910 (seems in decent shape though). Basement is cinder block, but in good shape, none are crumbling. Until I get an inspection I'm trying to be optimistic
Each unit is a smaller 2/1, pictures indicate the bathrooms are pretty tight/narrow. Overall in good shape, I'd have to drop maybe 2-3K getting both units rent ready. No room for increasing rent at its current prices.
There is a 3 car garage which could be a game changer, if I could rent that for another 400 per month as storage, my cashflow is excellent.
***I'd have to put 30% down which would run me dry from any further investments for at least 5 years until I save more through my rental property income (I own 2 others).
7.5% interest rate. If rates drop and I can refinance, cashflow would only increase. If rates drop and I refinance AND I can rent the garage for storage I'd be at 1000+/month cashflow.
I have the option to buy down a point or two as well on the rate.
Purchase 275,000
Rent 2400 (2800 if garage is rented for storage for $400/mo)
Insurance 1200
Taxes 3000
Maintenance/Capex 2000
7.5% rate @30 yrs
30% Down (82,500)
Cashflow $420 (820 if garage can be rented for storage)
@Steve Balinski what's the zip code for the duplex?
53143
Post: Curious what you all think of this property, Duplex in SE Wisconsin
- Roselle, IL
- Posts 107
- Votes 19
Hi Everyone, curious of your thoughts on this property. I use an excel property analyzer which I'm pretty comfortable using at this point. I bundle all expenses after taxes/insurance/mortgage into row 18 (maintenance). (see attached images)
Here are my dilemmas and things im considering
Built in 1910 (seems in decent shape though). Basement is cinder block, but in good shape, none are crumbling. Until I get an inspection I'm trying to be optimistic
Each unit is a smaller 2/1, pictures indicate the bathrooms are pretty tight/narrow. Overall in good shape, I'd have to drop maybe 2-3K getting both units rent ready. No room for increasing rent at its current prices.
There is a 3 car garage which could be a game changer, if I could rent that for another 400 per month as storage, my cashflow is excellent.
***I'd have to put 30% down which would run me dry from any further investments for at least 5 years until I save more through my rental property income (I own 2 others).
7.5% interest rate. If rates drop and I can refinance, cashflow would only increase. If rates drop and I refinance AND I can rent the garage for storage I'd be at 1000+/month cashflow.
I have the option to buy down a point or two as well on the rate.
Purchase 275,000
Rent 2400 (2800 if garage is rented for storage for $400/mo)
Insurance 1200
Taxes 3000
Maintenance/Capex 2000
7.5% rate @30 yrs
30% Down (82,500)
Cashflow $420 (820 if garage can be rented for storage)