All Forum Posts by: Spencer Dixon

@Julio Gonzalez

That is a good article. Thank you for sharing.

I'm 99% sure I qualify for the REP status.

Any chance you could recommend a company nearby Madison, WI to preform that cost benefit analysis?

Thanks again

@Yonah Weiss

Thank you, would that vary state by state? I'm struggling to find a company in the Madison, wi area that can facilitate this.

I have a single family rental property that has been rented for two years. I've done the normal long term depreciation of the property.

My question: Can I do a cost segregation even though in previous years I've taken the standard depreciation

I am a real estate agent, self manage the property, should qualify for all the benefits of being full time in the business of real estate. I'm hoping to wipe out a substantial amount of my taxable income this year.

Any advice would be lovely

I've spoken with a few lenders and it's possible to run it as a secondary home, vacation home and put down 10%. Depending on location, price point you could do a number of things on the rental side when you aren't visiting. Run it as an Airbnb, VRBO sites, month to month renters, or a 9 month rental or something along those lines. 

Again depending on locations it could run nicely with school years for universities, colleges, tourism. Also would depend on how much involvement you want to have with operating (or how much you want to spend on a manager). 

If you are flexible on the amount of money you are hoping to generate when you aren't using it there are more or less options too.

I've been looking for a vacation rental throughout the state, as well as rental properties throughout madison and milwaukee areas so I'd be happy to be another resource for you if you'd like to message me. 

Best of luck

@Taylor L.

Right, I've used BRRR on single family homes with conventional loans.

But I'm not seeing the numbers increasing enough ARV and therefore I'm leaving at least 10 to 15% in the deal of my initial investment.

Going the commercial loan route is what I'm thinking but it's a new process to me. If I can definitely improve rental income is there a formula on how much that increases the ARV?

I'm in madison wi area and looking through south central Wisconsin at lots of multi family properties.

What's the best way to purchase without tying up too much capital?

I can't owner occupy and will likely need to put 20% down but what's the best way to get money back out?

I'm targeting properties that need some work so I can definitely add value and increase rents but once I do that should I go commercial loan route? Not sure the residential loan will have same measure for increased value, not enough comps etc...

Thoughts?

@Jeremy Trad Thank you! That is a good idea, that I haven't explored much. But figure with a growing airport and travel business in Madison that could be a great idea. 

Hi All,

I've been looking at purchasing a property to use as a short term rental in and around Madison, Lodi, Spring Green, and the driftless region to the west. Anyone having luck owning or managing one currently? I'm using sites like airdna to help analyze deals but would like a little tip on how to navigate local licensing (if needed or not) and how I could maybe start one in Madison specifically what hoops I need to jump through?

Hi Natalie, 

I moved back to the area almost 6 years ago and did a similar thing. I currently own to properties, one rental and one currently live in, waiting on reappraisal process to finish up and then likely start looking for the next deal. Would love to connect and bounce ideas off, as well as be a resource for. I love analysis deals, and am always eager to see how others do it. Hope all is well

Hey Adam,

my first thought is absolutely keep and refinance, pull whatever equity you can out. The margin of money you'll have on hand to purchase next BRRR wouldn't be that significant right? Meaning if you sell maybe an extra 10k cash 25k at most not taking into account taxes, fees, commissions.

I see you are a realtor in the area, I'm a realtor and live right near pinney library and would be happy to be a second opinion on sell price / appraisal price.

Depending on your experience as a landlord with the property I think that would be the tipping point for me. If it's going well and cash flow a couple hundred a month, I think you should keep. There are still areas that have huge potential for appreciation in value. 

Best of luck and keep us posted on what you decide.