Originally posted by @Connor Stark :
@Marcus Auerbach @Jeff Cichocki I'm interested in Wisconsin markets surrounding Milwaukee. What are your opinions on pockets that are up and coming?
Up and coming is a tricky concept - they are by definition volatile areas, often driven by speculation or the anticipation of a major investment or new business. Who would not want to make a quick buck and look like a genius rockstar by buying before the neighborhood turned?
The whole idea of real estate investing is rooted in protecting your principal and lowering risk as close to zero as possible. Looking back the last ten years - where should I have invested? It's mostly expensive neighborhoods that come to mind - these areas did the best. The best examples are probably Bayview and Riverwest, both have seen a big change in price levels, but both have still not fully arrived on the "great neighborhood" list; people will argue that Riverwest has been up and coming for 20 years and while prices have gone up a lot, it still feels a little sctechy and residents still don't like leaving their car on the street.
Milwaukee as a whole has seen 5 to 7% appreciation during the last years, but individual areas have performed very differently. The city is fully built out: between the lake and the surrounding suburbs with their large lot subdivisions and mansions there are is no room left for growth, new construction in the suburbs is expensive 450-650k usually for a single family - too expensive for most. Closer to the median price point 200k-ish we are limited to existing housing stock, and there is no new supply. This will further drive prices, especially in desireable areas with better/good schools. So this is where we continue to grow our portfolio.