All Forum Posts by: William S.

1. Could you provide a range please? For example, 3 bed SFH.

3. OK. So go to the city tax website and see what the credit was? MLS property tax amount - credit

Thanks!

@Tim A.

Sent you a PM. Hope the info helps!

Hi All!

Quick questions about investing in Milwaukee...

• How much is your insurance and what provider do you use? I'm looking for cost effective solutions (singe families, duplexes, condos).
• Any recommendations on contractors? Average prices for remodels? Kitchen, bath. Only interior work.
• Does Milwaukee have different property taxes for home owners and investors? Is it higher for investors? Is it the same regardless?

Thanks!

The numbers (left image) next to capex items such as roof, hvac, etc are the current age of these items. For example, roof is 10 years old. The TK provider said its 5-10 years old so I took the worst case for estimating. I've been using the chart for capex items in the below: 

https://www.biggerpockets.com/renewsblog/2015/10/1...

It seems if you use the IRR method, it pretty much kills all of the single family homes with rents below $1,000/m. A couple of questions.

1. IRR seems to be the way to go for Multi-families perhaps?

2. Should you use capex % during your acquisition phase? Once you've used the cash flow to purchase a few other properties, payoff all of the mortgages to prepare for capex?

3. Have reserves set aside, and possibly invest those reserves in low-risk stocks, bonds to beat inflation costs?

I'm ready to buy, but coming across this has made me second guess everything...

@Ben Leybovich

@Ali Boone

@Alexander A.

This is basically a IRR vs percentage based cash flow analysis. I'd be interested to get @Ben Leybovich @Alexander A. @Ali Boone perspectives on this as well.

The insurance is a typo. Both should be $60/m. The left image is getting into specifics. Vacancy factors in using property management with fees and Cap-Ex items being broken down into their lifespan. The right image is simply using a percentage method of calculating cash flow without going into further detail. The percentage method is what many investors use for TK properties, but after going into detail of Cap-Ex expenses the deal doesn't look very profitable. I want to be a hold investor. Do TK's not make sense because of Cap-Ex if your plan is told hold the property? Maybe investors acquire several TK's, then pay them off quickly with the initial cash flow before any major Cap-Ex items come up?

Hi All,

I've attached an image that shows two methods of running numbers on this potential cash flow property. The left image is highly detailed, the right image is percentage based. Am I being too crazy with the more detailed numbers? Did this kill the deal?

Exactly what I was thinking. I probably won't stay in one place forever. I have roots in KC. More homes for you! Haha.

Hi All,

I've been on this site for a few months trying to get my first rental, but am at a loss still. First, thank you all for helping me out. I feel close to making my first investment, but need one last push I think. A little about me...

Goals:

Cash flow ($250-$300/m)

Acquire one rental property (single family) a year over the next three years, then payoff all (25%, 30-year fixed mortgages)

Stay small. Buy three, then pay off all (real estate isn't my only investment vehicle)

My role: investor, not handyman, landlord, etc

I currently live in Milwaukee and have been trying to find something local. However, the cities future, high property taxes, union labor (contractors), high insurance cost, and low cash on cash return (less than 9%, goal is 15%) is a problem. If I was not local, I would never consider this city. One plus is that rentals don't stay vacant for very long at all (days). I have lived in Kansas City and have family that I visit there. From an investment standpoint it seems like an obvious choice, but I am not local. Another issue, there is so much to learn so I'm afraid if I try to start from scratch things won't work out. I'm in need of guidance.

Should I simply go out of state and use a turn key provider? I know Kansas City well, but lack info on South KC, Raytown, Independence. I don't want to buy in a bad area and I'm not sure about buying out of state. At some point I will most likely move elsewhere, so I'm not sure if being local in the long run makes sense anyways. I'm only buying/holding three properties in my lifetime so I want to choose wisely. This is a long term approach...

Thoughts? Help?