Well here I go, I drank the Kool-Aid and it looks like I’m set to close at the end of June. This is a new thing for me and I’m looking for some words of wisdom before the effects kick in.
As some of you may know I’ve been managing this Wisconsin community for about 8 months. Here’s the details.
Private well and 3 septic tanks, all in 2015
I’m certified with the state of WI as an operator
18 lots- $215
2 homes I own on RTO
2 homes I own on straight rentals
1 home I own is vacant and needs rehabbed
I’m the certified water system operator
1 duplex- $900 total
4-plex- 1/2 full- $700 total
1 small SFH-vacant
12 adjacent acres
The 4-plex and SFH need some work, a little more than paint and fixtures.
The grounds also need work
Purchase price $225,000
89% bank financed
5 year balloon amortized over 25yrs
First 3 months no interest, no payment
First year and a half at 4%, remainder at 4.25%
$80,000 Line of credit also
89% financed same terms over 6 years
$40,000 private financing for down payment and start-up
8% for 15 years
Tell me your thoughts, bad or good I’ll take it all.