All Forum Posts by: TJ Plotkin

Your post reads like you should spend some quality time going thru some learning materials and asking questions to those on the site that are both experienced and receptive.  Feel free to PM me, I'll answer any questions I can and have a few of my own that might get you thinking.

If you want to know about Brown Deer than Marcus is definitely the guy to reach out to.  He renovates like you're talking about and cash flows just fine.  I see lots of talk about Milwaukee from people located in Texas or California.  Run down factory town with salaries unable to support $1400 rent?  I guess that's why they've built and are building apartments and condos all over at or above that range... Do a search for available SF rentals in decent areas and no matter where you look you'll see an utter lack of inventory and there are always people looking for someplace decent in a good school district to rent because they're not in a position to buy but can afford to rent and want their kids in good schools.  The deals are there in all reasonable price ranges, you just have to look for them and figure out what exactly you're looking for and just keep looking.

Looking for a REALTOR in the Milwaukee area that has experience finding deals on class A properties on Milwaukee's south and west sides.  Cudahy, Oak Creek, South Milwaukee, Franklin, Greendale, Hales Corners on up to Brookfield and Pewaukee and Tosa.  I'll be in town next month to meet with and shop in person and would like to establish a relationship prior to and during that time.  

It's a difficult stat to come up with, but I'd bet the population of Milwaukee and it's surrounding areas hasn't declined.  Like Joshua said, there has been somewhat of an exodus into the suburbs, so the city is spreading outward.  With consistent infrastructure development and a downtown in the middle of a transformation, saying the city is dead or dying like Detroit is misleading. 

This all sounds great, and maybe there is a correct formula for figuring what the property is worth, but does it matter?  I'd just run the numbers using all of the expenses and see what I would need to offer to cash flow the way I want, maybe better than what I want.  That way there's some bargaining room.  If you get it and people think you paid too much, just show them the profit checks that roll in.  I'd probably find an agent that has experince in the area and ask for a valuation as well, maybe even an appraiser.

I'm not the most experienced member when it comes to financing a property with more than 4 units, but I did look into it before and the banks considered the property with more than 4 units a commercial asset and would loan on it as such.  Seeing as it's a commercial asset, the programs that you would benefit from by living in it would no longer apply and therefore be no benefit.  Also, if you don't have a background in managing those types of units, getting traditional type financing is impossible.  They want to see that you've managed at least 4 usually, so start with the 4 is my advice.

Xavier,

Head to the website I linked below and the properties and programs applicable to those properties are detailed within the site.  There are a bunch of little programs and credits that you could possibly take advantage of.  As far as the rehab credit is concerned, they will match up to the max amount(which I think is 20K) for renovations to bring the property up to code and back into a tax-generating status.  That credit applies per unit, so if you were to buy a duplex you could double the max credit.  Anyway, check out the site, it will answer most if not all of your questions.

city.milwaukee.gov/CityRealEstate

I think talking to your agent like Ramon said is a great first step.  For starters, they're likely to be familiar with the situation and will have helped client in the past if they're the kind of agent you want.  Second, they're not looking to profit from your loan, so they won't have the bias that a loan officer will while looking at you as a potential customer.  You can always consult various financial institutions afterword, they'll alway be there waiting to give you money if it's profitable and deemed safe enough.

As others have said, there's always another house out there.  Buy by the numbers, not the feel.  Use the worksheets here on BP and buy smart, no need to rush if what you want isn't available at the moment.

The VA loan really is a solid benefit, that's for sure. I'm using mine for my primary residence now, but wasn't really hip to the house hacking beforehand, so I'm stuck where I'm at for now VA wise.