All Forum Posts by: Vern Hixon

@Neil Collins , one of the two tenants is leased up thru Sept 2018, so I can't make any moves with him until then. The other I am waiting on until spring - basically because I don't want to force someone to have to move during the winter. The reason I don't want to hold onto the property in anticipation of the increased rents is I have none of my own equity into the property. I took out unsecured loans to fund the downpayment, so my CF right now is basically zero. I need all of the monthly rents to make the mortgage and unsecured loan payments. I have nothing left over for maintenance/Capex items. Even with the increased rents, my CF won't be much after deducting ins, taxes, and etc. plan is to sell and 1031 profits into different property or properties where I'll have some skin in the game and better CF.

Jay Helms , I haven't done anything to increase value other than buy at the right price. It was a FSBO and I don't think the seller was aware of the market when he listed it. At the end of the day, I know he was happy with the price he received, and so was/am I, so it's a win-win. I agree that higher rents don't necessarily mean higher values for <4 unit properties. However, the increase in rents I anticipate this spring certainly won't hurt my cause. My worry is that if I wait, I'll have to sink $10k into the place (there are a few cosmetic repairs that need to be made) and may not be any further ahead than if I sold now as-is. Also, there are no other properties on the market right now. I'm guessing that will change this spring. Just wanted to get some other opinions from investors who have been in the same or similar scenario.

Good morning BP! I recently closed on a duplex in Little Chute, WI which is near Appleton, WI. My plan from the start was/is to flip this property, but I'm having a hard time deciding when I should put it back on the market. Right now both units are rented for well-below market ($3-400/unit). Total rents are currently $1,650. They should be in the $2,300-2,500 range. One of the tenants is month to month, the other signed a lease the day before I signed the purchase agreement that ends Sept 30th. My initial plan was to give notice to month-to-month tenant in the near future so that he is out by April 1st. His unit (both actually) need pretty minimal work. However, his unit will need a new furnace and A/C unit to be able to command top dollar in rent as both tenants pay their own utils and the existing furnace/AC in that unit are old and in-efficient. Total cost of furnace/AC is somewhere in the $5-6k range. Obviously, the higher the rents are, the better price I will get for the property. However, there is currently nothing on the MLS for multi-family properties in Little Chute and I know there is some demand. Should I wait to sell until I get rent up in the one unit and risk there will be other properties for sale on the MLS this spring, or should I sell now without having to put any money into the house when there are no competing properties on the market, even though it's typically a slower time of year? Thanks in advance for your help?

Carrie, I've heard good things about Blue Frog Property Management. Good luck in your search!

Daniel, 

I'm an investor in Green Bay as well. Do you mind me asking what Blue Frog's fee schedule looks like?

Thanks in advance!

I'm in the process of implementing credit check requirements for all new rental applications. I'm wondering what BP members recommend for websites/companies to use for performing credit checks? Thanks in sdvsnce!

Thank you for the insight @Joanne Llaury-Marks and

@Dan Walter! The particular deal I was looking at doesn't make sense. However, I feel a little better versed at what I can expect to get in rents thanks to your input!

Ras, I have zero experience with vacation rentals in Door County, but this sounds like a great deal to me as well. I've used VRBO.com (Vacation Rental by Owner) several times in the past and am guessing you can get a semi-accurate picture of what you can expect to receive for rents. I would guesstimate that you could get $1,000/week during the summer months with no problem, assuming it's nicely done. My only thought would be finding out if there are any covenants in place that restrict homeowners from renting their homes in your area. You'll also have some upfront costs furnishing the place if that's the route you choose to go. Good luck with everything! Sounds like a good deal to cut your teeth on.

@Shakeira Ingram, thank you for the tip! I've never heard of that site before until now.

I'm wondering if any landlords/property managers in the Green Bay and/or Appleton, WI markets can give me some insight into what they're getting in rents. I'm currently looking at two properties in the Appleton area. One is in downtown Appleton, the other in Little Chute. Both are duplexes. The one in Appleton is a 2 bed/2 bath lower and 2/1 upper. Landlord pays heat/water. Seller states that one unit is bringing in $600/month. I'm guessing this is the 2/1 upper as he stated that he and his wife lived in the other unit before moving out. Both units at the Appleton house appear to be recently remodeled w hardwood floors. Both have 1,000 sq ft plus. There is no garage, but ample off street parking. Any opinions on what market rent should be? $600 seems low to me considering heat/water are included. 

The Little Chute duplex is a 3/1 lower and 2/1 upper. Each unit gets one stall of a two car detached garage. Tenants pay all utils at this house. 3/1 lower pays $705 and 2/1 upper is paying $450. Once again, I'm looking for opinions on what market rents are in this area to ensure my projections are dialed in before I move forward with one or both properties. Any feedback is appreciated. Thank you!