Purchase rental homes in Milwauke

6 Replies

Hello BP,

I am ready to move onto my next investment project and am searching for a rental home in the Milwauke area.  Can anyone here pinpoint to which area (s) in Milwaukee seem to be lucrative for investors?  Thanks.

TT

@Matt Maurice runs a great PM company in Milwaukee, and he's helped me narrow down my target areas. I'm currently looking in West Allis and some select southside neighborhoods/suburbs of Milwaukee. I've got a few homes currently on the North West side. Those cash flow well for the price, but not sure the return is any better after maintenance and capex. 

@Marcus Auerbach might also be able to help highlight some areas to focus. He's a very knowledgeable Realtor and investor in Milwaukee. 

Lastly, @Rebecca Knox does some investing and wholesaling in Milwaukee, but she also runs a Milwaukee based investors group. If she doesn't have the specific knowledge you're looking for I'm sure she can point you in the right direction. 

Best of luck as you get started in Milwaukee!

HI Trang,

Milwaukee area is wonderful & fundamentally stable. I agree that Rebecca, Marcus & Matt will be great resources! 

My 2 pennies:

(1) I would suggest joining brew city group on facebook along with some other RE groups targeting mke area. (2) connect with other out of state investors in mke area and see what their challenges have been. (3) Linking with the right Realtor &/OR Management company is the key & they can pinpoint "lucrative" area based on your investment expectations & tolerance for risk. (4) Visit Milwaukee & Drive the neighborhoods you are considering so you can be more devoted to your investment (stay away from tough areas unless you are a seasoned investor). 

Good luck!

Thanks for the mention, Jack!

Milwaukee a fatastic sandbox to play in - it has so many vastly different neighborhoods, sometimes street by street, that you can find a market for slmost any possible strategy. What came unexpected to me is how cool the city is becomming - I have worked with a number of young clients this year, who relocated to the city and when I asked them why they said (to my surprise) because Milwaukee is cool! 

When my company asked me to move to Milwaukee in 2008 I was not very excited and expected a stgnant rust belt midwest town, but a lot has changed, especially in the last 5 years: downtown is rapidly evolving and the city is seeing an amount of commercial construction, which I believe (I have not researched the data yet) it has not seen since the 50s and 60s. Milwaukee is actually growing a bit of a skyline and a lot of people have started moving downtown and filling up highrises.

Anyway, the question of where to invest in Milwaukee is automatically ansered once you have defined your target audience (who you want to rent to) and have established your financial model. The easiest way to establish your financial, model is by using the BP calculator for a hypothetical property. You tweak the numbers until you like the result - then you look at the marketplace and most likely find out that you are looking for a unicorn and your expectations are unrealistic. So you keep adjusting your model until you find a scenario that is both luctrative and realistic. From there, once you know excactly what you are looking for, finding the property is the easy part.

As any other market the city is divided.  Defining whether you are looking for B or C areas will be vital.  Many C properties are coming online.  I suggest taking time to visit the areas you are looking to buy in before purchasing. 

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