First House

[#UnleashSean]

If I ever move back to Milwaukee, I'll have to live near Leon's on S 27th so I could walk there 5x a week. Then I can die fat and happy.

If I can find a spot within walking to real chili or Docs I may die within two years.

[Bad_Reporter]

Good luck in your house search. I bought my first house 2 years ago in Fox Point.  I agree with the advice you've been given. School districts are a big deal even if you aren't married or have kids.
 
I'd like to sell my house just due to the insane amount in taxes I pay, but I get a nice refund at the end of the year when I file my income taxes.

I know you didn't mention the fox point area, but you can get a decent house for the 160k range, it would just need a lot of updating.

Good luck

[ZiggysFryBoy]

Good luck in your house search. I bought my first house 2 years ago in Fox Point.  I agree with the advice you've been given. School districts are a big deal even if you aren't married or have kids.
 
I'd like to sell my house just due to the insane amount in taxes I pay, but I get a nice refund at the end of the year when I file my income taxes.

I know you didn't mention the fox point area, but you can get a decent house for the 160k range, it would just need a lot of updating.

Good luck

In Fox Point?  Wow.  I remember just super expensive houses there back in the day.

[Jay Bee]

I'd like to sell my house just due to the insane amount in taxes I pay, but I get a nice refund at the end of the year when I file my income taxes.

A nice refund every year is another way of saying, “I did a poor job planning and gave governments an interest free loan!”  Odd thing to celebrate, my man.

[21Jumpstreet]

My little brother lives around 72 and Locust near Enderis Park. Bought a nice little house that needed some tlc. Great area. I live in the burbs now, but my sons go to Milwaukee Montessori School. It’s exceptional. Good luck!

[#UnleashSean]

My little brother lives around 72 and Locust near Enderis Park. Bought a nice little house that needed some tlc. Great area. I live in the burbs now, but my sons go to Milwaukee Montessori School. It’s exceptional. Good luck!

Are you one of those monsters who clogs the road by the church from 245 to 330?

[Chili]

For your first house you should realize this is your starter house and you should view it as such. You're most likely only staying 2-5 years. You should focus on what you get the most return and equity on in that amount time. Try and pick neighborhoods where people are moving to and will be the next hot place to live. The reason you do this is that when you sell in that 2-5 years you can make a boat load of cash and apply that towards your next down payment.

Look for places that are structurally really good but need updating if you can stomach it. It's an easy place to make sweat equity work for you. Too bad the new tax laws though don't let you take that interest off your taxes any more. Just remember kitchens and bathrooms sell places. So if you can do the flip on that part you can get a huge amount of equity.

Key things I would also have:

1) A good really really good agent. Don't just use your friends unless they are a top 10% type agent. At least in Chicago most of the best properties never even hit the open market. They are all pocket listed amongst a small group agents just for their clients. They never even hit Redfin or Zillow.

2) Get going right now! You want to try and set the market price in the spring vs. having to pay more in a few months when people start buying. It's a frenzy out there - be decisive but not foolish.

3) Make sure you have a really damn good inspector. Can save you tons. And don't be afraid to ask for everything once the inspection is done.

4) If you can put 20% down go for it. PMI is a PITA and waste of money. If not, pay extra each month to get it gone.

In the last 3 years my wife and I have bought & sold our condo and made a 24% return in 24mo and used that build a new dream house a mile away with 20% down which we could already sell for 10% more than we paid. Don't just view your house as a place to live but balance that out with the idea that it's an investment and you can set yourself for a good future.

You could also look into getting a 2 flat for your first place and renting out half. Great way to start building wealth. I have a few friends who have done that and they love it.

Good luck to you.

[Goose]

I agree with Jockey, look at a ton of houses. Wife and I have bought two homes in last thirty years and really worked hard on looking at a lot of joints. I also agree with Sir Lawrence across the board. I might add some of the same older houses near the Tosa village. Not sure if price is right, but great area.

[21Jumpstreet]

Are you one of those monsters who clogs the road by the church from 245 to 330?

Hah, that’s great, it is a pain to be sure. Nope, I either get their early to get in line in the school lot or my boys get picked up a little earlier near Cannon Park...most of the time ;-)

[Hards Alumni]

For your first house you should realize this is your starter house and you should view it as such. You're most likely only staying 2-5 years. You should focus on what you get the most return and equity on in that amount time. Try and pick neighborhoods where people are moving to and will be the next hot place to live. The reason you do this is that when you sell in that 2-5 years you can make a boat load of cash and apply that towards your next down payment.

Look for places that are structurally really good but need updating if you can stomach it. It's an easy place to make sweat equity work for you. Too bad the new tax laws though don't let you take that interest off your taxes any more. Just remember kitchens and bathrooms sell places. So if you can do the flip on that part you can get a huge amount of equity.

Key things I would also have:

1) A good really really good agent. Don't just use your friends unless they are a top 10% type agent. At least in Chicago most of the best properties never even hit the open market. They are all pocket listed amongst a small group agents just for their clients. They never even hit Redfin or Zillow.

2) Get going right now! You want to try and set the market price in the spring vs. having to pay more in a few months when people start buying. It's a frenzy out there - be decisive but not foolish.

3) Make sure you have a really damn good inspector. Can save you tons. And don't be afraid to ask for everything once the inspection is done.

4) If you can put 20% down go for it. PMI is a PITA and waste of money. If not, pay extra each month to get it gone.

In the last 3 years my wife and I have bought & sold our condo and made a 24% return in 24mo and used that build a new dream house a mile away with 20% down which we could already sell for 10% more than we paid. Don't just view your house as a place to live but balance that out with the idea that it's an investment and you can set yourself for a good future.

You could also look into getting a 2 flat for your first place and renting out half. Great way to start building wealth. I have a few friends who have done that and they love it.

Good luck to you.

Everyone else is telling him where to live, and you're here telling him how to do it.

You're exactly right on every point.

ESPECIALLY POINT 3.  PAY EXTRA FOR A GREAT ONE.

[#UnleashSean]

Hah, that’s great, it is a pain to be sure. Nope, I either get their early to get in line in the school lot or my boys get picked up a little earlier near Cannon Park...most of the time ;-)

Have yall gotten any letters home? I know a few neighbors have been complaining about cars blocking their driveways and people refusing to move. I usually just lay the horn on them until they get out of the way.

[#UnleashSean]

For your first house you should realize this is your starter house and you should view it as such. You're most likely only staying 2-5 years. You should focus on what you get the most return and equity on in that amount time. Try and pick neighborhoods where people are moving to and will be the next hot place to live. The reason you do this is that when you sell in that 2-5 years you can make a boat load of cash and apply that towards your next down payment.

Look for places that are structurally really good but need updating if you can stomach it. It's an easy place to make sweat equity work for you. Too bad the new tax laws though don't let you take that interest off your taxes any more. Just remember kitchens and bathrooms sell places. So if you can do the flip on that part you can get a huge amount of equity.

Key things I would also have:

1) A good really really good agent. Don't just use your friends unless they are a top 10% type agent. At least in Chicago most of the best properties never even hit the open market. They are all pocket listed amongst a small group agents just for their clients. They never even hit Redfin or Zillow.

2) Get going right now! You want to try and set the market price in the spring vs. having to pay more in a few months when people start buying. It's a frenzy out there - be decisive but not foolish.

3) Make sure you have a really damn good inspector. Can save you tons. And don't be afraid to ask for everything once the inspection is done.

4) If you can put 20% down go for it. PMI is a PITA and waste of money. If not, pay extra each month to get it gone.

In the last 3 years my wife and I have bought & sold our condo and made a 24% return in 24mo and used that build a new dream house a mile away with 20% down which we could already sell for 10% more than we paid. Don't just view your house as a place to live but balance that out with the idea that it's an investment and you can set yourself for a good future.

You could also look into getting a 2 flat for your first place and renting out half. Great way to start building wealth. I have a few friends who have done that and they love it.

Good luck to you.

Hey these were the types of tips I was looking for. I really hope to get around 25% for a down payment, maybe my father will be able to help out with that. I also really hope to buy within the next 2 months.

[Dr. Blackheart]

Do you have a chick on the sleeve?  If not, Bay View. Congrats!

[Lighthouse 84]

For your first house you should realize this is your starter house and you should view it as such. You're most likely only staying 2-5 years. You should focus on what you get the most return and equity on in that amount time. Try and pick neighborhoods where people are moving to and will be the next hot place to live. The reason you do this is that when you sell in that 2-5 years you can make a boat load of cash and apply that towards your next down payment.

Look for places that are structurally really good but need updating if you can stomach it. It's an easy place to make sweat equity work for you. Too bad the new tax laws though don't let you take that interest off your taxes any more. Just remember kitchens and bathrooms sell places. So if you can do the flip on that part you can get a huge amount of equity.

Key things I would also have:

1) A good really really good agent. Don't just use your friends unless they are a top 10% type agent. At least in Chicago most of the best properties never even hit the open market. They are all pocket listed amongst a small group agents just for their clients. They never even hit Redfin or Zillow.

2) Get going right now! You want to try and set the market price in the spring vs. having to pay more in a few months when people start buying. It's a frenzy out there - be decisive but not foolish.

3) Make sure you have a really damn good inspector. Can save you tons. And don't be afraid to ask for everything once the inspection is done.

4) If you can put 20% down go for it. PMI is a PITA and waste of money. If not, pay extra each month to get it gone.

In the last 3 years my wife and I have bought & sold our condo and made a 24% return in 24mo and used that build a new dream house a mile away with 20% down which we could already sell for 10% more than we paid. Don't just view your house as a place to live but balance that out with the idea that it's an investment and you can set yourself for a good future.

You could also look into getting a 2 flat for your first place and renting out half. Great way to start building wealth. I have a few friends who have done that and they love it.

Good luck to you.

I'd add:

5.  Do yourself a favor and get a good lawyer.  Not just a lawyer, but a real estate lawyer.  For $500 +/- (depending on where you are), it's cheap insurance to make sure everything will go as planned.  In most cases, this is the single largest expense you'll ever make (until your next house). Inspection, title, survey, possession or lender issues can be resolved a lot easier by someone with experience.

[reinko]

Keep an eye your credit, is okay, good, great?  Also research where you get your pre-approval from (your good agent should have a goto person).  The big banks (BoA, Citizens...) can actually be quite the hassle, not easy to get a hold of.  Look into local credit unions, or again take the recommendations of your agent.

Start gathering documents, lots of documents.  Checking statements, savings statements, retirement statements, W-2s from the past few years, 1040s from the past two 2 years, last few months of paystubs...just PDF all of this stuff, have it at the ready.

Mrs Reinko and I are battling the real estate market in the Greater Boston area, and it ain't pretty.  Houses in desirable neighborhoods getting 15-20 offers, some folks are waving inspections, some are all cash...just brutal.

Cheers and good luck Unleash

[ZiggysFryBoy]

Keep an eye your credit, is okay, good, great?  Also research where you get your pre-approval from (your good agent should have a goto person).  The big banks (BoA, Citizens...) can actually be quite the hassle, not easy to get a hold of.  Look into local credit unions, or again take the recommendations of your agent.

Start gathering documents, lots of documents.  Checking statements, savings statements, retirement statements, W-2s from the past few years, 1040s from the past two 2 years, last few months of paystubs...just PDF all of this stuff, have it at the ready.

Mrs Reinko and I are battling the real estate market in the Greater Boston area, and it ain't pretty.  Houses in desirable neighborhoods getting 15-20 offers, some folks are waving inspections, some are all cash...just brutal.

Cheers and good luck Unleash

Agree with Reinko.  Use a local credit union (UW Credit Union is great, they have several branches in the Milw area).  We had our first mortgage with Johnson Bank (ok) then refinanced twice with UWCU.  Built our new house and the credit union couldn't write the loan for a couple of reasons.  We got lazy and went with the realtor's broker.  (We trusted the realtor, one of the top teams in Madison and we knew and trusted both of them for many years prior to this deal). 

Needless to say, the broker was 1) lazy, 2) an idiot, 3)  Warren Buffett bought First Weber and the mortgage broker, so our loan was purchased by AIG.  It's been sold twice in a year, no local service, website sux.  Can't wait to refinance back to the credit union in a few years.

[drewm88]

I'll second the recommendations to spend on a good inspector and lawyer. Also, think about how long you want to be in this house. If it's short, go for an ARM and save even more.

[Jay Bee]

I'll second the recommendations to spend on a good inspector and lawyer. Also, think about how long you want to be in this house. If it's short, go for an ARM and save even more.

Disagree.  No need to spend extra on an attorney.

[21Jumpstreet]

Have yall gotten any letters home? I know a few neighbors have been complaining about cars blocking their driveways and people refusing to move. I usually just lay the horn on them until they get out of the way.

The one thing we were told was to slow down, which I absolutely agree with. It is crazy town during afternoon pick up. Most days my boys are there until much later, so I rarely have to deal with it, but man, people are crazy. Honestly, it drives me crazy, too. I was actually coming around the bend near the park and the apartment complex entrance and had to move into the center of the road due to the line up of cars. Dude is coming at me, I stop, he pulls right up to my front bumper, puts the car in park, and sits there. I slowly back up, move out of the way, he rolls window down and insults me, calls me a bunch of names, tells me I am an idiot, etc., all while his young daughter is sitting in the front seat. Good stuff...sorry if that was you, I was a little passive aggressive.

It is actually a nice neighborhood for a first house, too. Near a great school, great park, coffee and groceries are a walk away, highway access is super easy, hospital is right there, easy to get downtown, easy to get to the big boxes in Brookfield. I know a couple people have their houses on the market in that area and just east of 92nd.

[WarriorFan]

Always do the mortgage with a local bank or (better yet) a credit union.  If you're not already in a CU, join one now so you have some history with them before the loan paperwork.  Have your salary deposited there.

When you do the loan, add a clause that the bank/CU are not allowed to sell it.  I have done this with multiple mortgages and re-finances and the only comment I ever got was "good idea, I think we can do that" and it was always agreed. 

[Lighthouse 84]

Disagree.  No need to spend extra on an attorney.

Stick with scouting reports and other basketball related advice. 

As someone who has practiced real estate law in the Chicago area and closed hundreds of transactions each year for 30+ years, I can tell you that too many things can go wrong.  Your realtor can't (and shouldn't because it's the practice of law) solve most of the problems that may arise.   Do yourself a favor Unleash.  Find a good local real estate lawyer. 

[#UnleashSean]

I'll second the recommendations to spend on a good inspector and lawyer. Also, think about how long you want to be in this house. If it's short, go for an ARM and save even more.

Im not planning for a long term house. What is ARM?


Going for my first look today!

[#UnleashSean]

The one thing we were told was to slow down, which I absolutely agree with. It is crazy town during afternoon pick up. Most days my boys are there until much later, so I rarely have to deal with it, but man, people are crazy. Honestly, it drives me crazy, too. I was actually coming around the bend near the park and the apartment complex entrance and had to move into the center of the road due to the line up of cars. Dude is coming at me, I stop, he pulls right up to my front bumper, puts the car in park, and sits there. I slowly back up, move out of the way, he rolls window down and insults me, calls me a bunch of names, tells me I am an idiot, etc., all while his young daughter is sitting in the front seat. Good stuff...sorry if that was you, I was a little passive aggressive.

It is actually a nice neighborhood for a first house, too. Near a great school, great park, coffee and groceries are a walk away, highway access is super easy, hospital is right there, easy to get downtown, easy to get to the big boxes in Brookfield. I know a couple people have their houses on the market in that area and just east of 92nd.

Nah wasn't me. My girlfriend lives in the apartment complex so I have to deal with the nutties quite a bit. Sometimes they are good and don't clug the middle of the road... Other days......

[Lighthouse 84]

Im not planning for a long term house. What is ARM?


Going for my first look today!

Adjustable Rate Mortgage.  Usually a lower rate than a fixed 15 or 30 year mortgage, but the rate will adjust upwards (in most cases) in 3, 5 or 7 years, depending on the product.  If you know you'll only be there a short time, it can make a lot of sense.  If you're going to be there long term, get into a 15 year term if you can.

[4everwarriors]

Agree with Reinko.  Use a local credit union (UW Credit Union is great, they have several branches in the Milw area).  We had our first mortgage with Johnson Bank (ok) then refinanced twice with UWCU.  Built our new house and the credit union couldn't write the loan for a couple of reasons.  We got lazy and went with the realtor's broker.  (We trusted the realtor, one of the top teams in Madison and we knew and trusted both of them for many years prior to this deal). 

Needless to say, the broker was 1) lazy, 2) an idiot, 3)  Warren Buffett bought First Weber and the mortgage broker, so our loan was purchased by AIG.  It's been sold twice in a year, no local service, website sux.  Can't wait to refinance back to the credit union in a few years.

AIG wuz in da trailer park mortgage biz? Who new, hey?