All Forum Posts by: Zach Chappell

@Jacob Hanson Hi! Yep, it's a challenge to find the sweet spot between prices that are still reasonable and a neighborhood that is on a good trajectory. For me, one of the best spots in St Paul for a new investor is Payne-Phalen: still many sub-200k duplexes (albeit old ones), nice community, and the Payne commercial corridor with awesome businesses such as Toung in Cheek, Caydence coffee, etc. I anticipate this area to (for better or worse) gentrify substantially during the next decade. This is not to mention the new Rush Line BRT that will be built in the next couple of years (https://www.maplewoodmn.gov/1168/Rush-Line-BRT). See: transit oriented development

@Bob Bowling, how would you describe your tone in the following post?:

"Second, let's say you do all your figgering and guesstimates on a faux cap rate. Let's say you divide your NOI by YOUR made up purchase price + whatever you want to incorrectly add to it and let's say you come out with 10% crap rate. Whee! That's almost 10 times more than I can make at the Bank. So now to the negotiating with the seller and you pressure him to a lower than your made up purchase price and now you're getting the property at a 11% crap rate. You'll be rich soon.

Of course the seller knows about cap rates and knows the market cap rates are about 14%!! So for every $10,000 in NOI you overpaid about $19,500. One born every minute."

I have a question, what's with @Bob Bowling's attitude? 

@Steve Might politely asked a question, which the forums are for, after all. 

Hi @Mark C.

I am also going through the process of applying to grad school. I was interested in something related to real estate, and I have decided upon a Masters in Urban Planning and Development. This gives pretty in-depth knowledge of real estate concepts, with the ability to work in the public or private sector. 

Or, you could just do an MBA in Real Estate...

Thanks @Kyle Mack - a visit is definitely in the works! Is there any specific reason that you chose the NW?

Hi @Lucas Wagner,

To be honest, I have looked mainly at Eastside properties - though I imagine near-westside rentals would cater better to UW students.

I would be interested to know where you own properties, and what your strategy is. 

Regards!

I agree with you @Garrett Ziehlsdorf, the Madison market seems overpriced - it does not strike me as the friendlies town to an aspiring buy and hold investor (myself). 

I don't have enough experience yet to gauge a market by intuition, but my spreadsheets say that Milwaukee has good potential for cash flow given the prices. 

A questions for any experienced Milwaukee buy and hold investors: What are considered Milwaukee's A, B, and C, etc. neighborhoods? 

Regards!

Thanks for the welcome! Where can I find schedules/contact info for the monthly Milwaukee BP meet ups?

As a side note, it think it's great that you give a mention on your site to contractors that have done good work for you in the past.

Best,

Hello all!

Greetings from Zach Chappell, a novice investor from Madison, WI. I am a UW-Madison graduate in my late twenties who has been cultivating an interest in real estate investing for a couple of years, but has yet to do a first deal. At this point I have a good idea of the investment strategy I want to pursue, and a pretty healthy down payment ready to go.

I am interested in cash-flow properties, and more specifically, in what has been coined "hybrid" real estate investment. This strikes me as, on the continuum of risk, a happy medium between house flipping and pure cash flow properties.

Naturally, I started by studying my local market, Madison. However, I have been hard pressed to find a multifamily that even approaches the 2% rule - most properties on the market will leave you breaking even or in the red at the end of the month. I am very keen on learning more about the Milwaukee market.

I am eager learn, network, and grow in knowledge and experience. Please contact me in you are a WI investor that would like to chat, or anyone that can offer good advice to an aspiring investor.

Best regards, 

Hello,

My name is Zach Chappell, and I am a 27 year old from Madison, WI. I have casually invested in stocks and such since I graduated college in 2011, and am now ready to take the leap into real estate investment. I have enough saved for a healthy down payment. 

My question is with regard to the concept of "house jumping", which I have seen referenced from time to time. It is apparently a method of acquiring several multi-families with lower downpayment costs. 

Would anyone with experience in "house jumping" be able to give me a comprehensive rundown?

Thanks from a newbie,