If you’re considering buying a rental property in Oshkosh, Wisconsin, you need to watch this video. In this video blog post, I am going to go over how to buy your first rental property and what you need to watch out for and be aware of when you’re buying your first rental property in Oshkosh, Wisconsin. So step one, first you need to start searching for property and finding your criteria. Are you going to buy single family houses? Are you going to buy duplexes, triplexes, quads, or are you going to buy more than four or five units? Anything about five units is considered commercial property, so you will need to obtain a commercial mortgage on that. It could be a little bit more difficult.
You will need an LLC, and you’ll need the finances to back it up. But if you are going the residential route, you’ll just go through a normal mortgage lender or bank, banking institution, and they’ll be able to get you a residential mortgage. That is step one, find and dictate your buying criteria, and then start searching for properties. Start searching for deals on rental properties in the area. Do you want something that needs a little bit of love, that you can fix up and add equity do it, or do you want something that’s rent ready? Turnkey rentals are becoming very popular, and for some of you that might be the better option and route to go. So, that’s step one. It’s kind of all encapsulated in there.
Step two is actually going out to search for rental properties. As you can imagine, typically rental properties in Oshkosh are not as well maintained as someone’s personal residence. You have tenants living in the rental property, and it can become rundown, neglected, and just have a lot of capital expenditures that you need to spend money on after purchase or prior to purchasing. The seller can fix those items for you. So, that would be step two is actually searching for the property, seeing if you’re more of the turnkey rental property type of buyer or if you’re the fixer upper buyer.
Step three is making an offer. Typically a real estate agent can do this, if you’re looking at on market properties, or if you’re looking at an off market properties, you can personally write the offer yourself. As our investment company, I personally just write the offers or my business partner, Brian, writes the offers on the properties that we buy off the market. Then no real estate brokers are involved. Of course, I have a real estate license, so I have to always make that disclosure. But step three is going to be making that offer. If You need help with this, typically a mortgage lender can help you out. They’re probably somewhat familiar. Or hire an attorney to represent you. They will go over on the paperwork, the legalities. If you’re buying more than five units of commercial property, I would highly recommend either an attorney or a broker representing you, because they know the ins and outs of the industry, and they will know it very well.
Step four is actually getting that property under contract and going through the due diligence phase on a residential, one to four unit property. The process is gonna look like this. You’ll get an accepted offer, put some earnest money down, possibly do a home inspection, if you ask for one. After the home inspection, if there’s repairs that needed to be made, you can suggest to the rental property owner that you want such and such repairs made. If they repair it, great. Then you can continue moving forward. If they don’t repair it, then you’ll walk away, start the process over again. But with that, after the repairs have all been agreed upon, then there’s an appraisal, and then there’s the loan commitment. Then there’s the closing. If the property appraises fine, then no worries. It’ll just keep pushing forward. You’ll have to provide your mortgage lender with all the financial information that you need and you can kind of go from there.
Then after closing, typically step number five I believe we’re on is you can either manage the property yourself, or you can hire a property management company. That’s up to you. It depends on how much work you personally want to take on yourself. Do you want to be in charge of all the repairs, maintenance, tenant screening, all that sort of stuff? Or do you want a property management company to take care of it for you? So, those are your options. That’s how to buy your first rental property in Oshkosh, Wisconsin. When I break it down like that, it seems complicated. It seems overwhelming. If you want me to break it down with you in person or if you have questions and you don’t want to do it on your own, please just let me know. Give me a call, (920) 252-2864, or shoot me a text. I’m more than willing to help you and walk you through the process, and I hope you found this information valuable. If you have questions about buying your first rental property in Oshkosh, just let me know. Have a great day.