Milwaukee Duplex House Hack

12 Replies

Hey BP, I'm excited to announce that I recently purchased my first duplex! It's a 3/3 in the Milwaukee area, and I will be using it as a house hack. I was looking primarily on the MLS for about a year before I closed on the right deal. Shout out to @Marcus Auerbach for all of the help!  The numbers are as follows:

Purchase Price: $174,000

Estimated Rehab: $15,000

Rent after repairs: $1,050/unit

PITI: $1,275

Vacancy: $105

Maintenance/maintenance: $105

CapEx: $105

Water & Sewer: $75

Cashflow: $435

After the rehab, I should be able to knock off the PMI, so I would cash flow an extra $70. I won't be completely living for free, but I may end up getting a roommate or AirBnB the other bedrooms to cover all of the expenses. I'd love to hear what you guys think! Feel free to reach out if you have any questions.

There is always so much to learn, which seems area specific. In my area, you don't get much bnb action unless you are super cheap or close to the city, which becomes real competitive with airport hotel/motel. 

@Drew Markert congrats! I’ve spoken to @Marcus Auerbach and he’s a good dude. Perhaps in the reference section of his profile you can mention how he was of help to you. I’ll be investing in Milwaukee real soon. All the best to you!

Jorge

@Michael Sato Thank you!

@Dennis L Lewis Jr Thanks Dennis!  Once the tenants are out of the unit I'll be moving into, I'm estimating about 2-3 weeks.  The rehab is all cosmetic work which I plan to do on nights/weekends.  It could be done much quicker if I hire it out, but I'd like to learn more about the rehab process as well as save some money :)

@Jorge Ruiz Absolutely, thank you for the reminder!  I always forget about the reference section.  @Marcus Auerbach is a great person to be working with.  I wish you the best of luck in Milwaukee!  Feel free to PM me if I can help in any way.

@Drew Markert - What does the split of your duplex look like? Is one side a 2/2 and the other a 1/1? I'm not sure how hot the market in Milwaukee is, but personally, I think you can make a lot more money on AirBnb. Especially if you live there and don't mind doing the sheets. 

However, it might be a good idea to test it out for a few months. Perhaps you find a long term roommate to live with you in the 2/2 and then AirBnb the 1/1? Or vice versa? I would suggest testing both out to see what you can get! 

actually the most profitable way for you to do it (it sounds like you might be single) is to rent out half, and be a minimalist; keep most of your personal belongings in a storage facility (or locked in the basement if avaliable) and just "disappear" for a few days if an air BNB customer books. 

Hey @Drew Markert ! Way to get in the game! Sounds like it will work out well for you. Few questions, where is this thing? And depending where you might be better off putting the other unit on Airbnb altogether. we discussed Airbnb at the last brew City Meetup and sounds like it's viable most places around Milwaukee. And if you're single find a roommate. we're doing the same thing on my end. Nice having zero living expenses. Best, JTM

@Craig Curelop both units are a 3/1.  I haven't thought much about Airbnb for the complete other half, but I'm looking into this more - thank you for the insight!

@Joshua Martin thank you for the kind words!  It's located near 92nd and Howard.  Not sure if that's the greatest place for Airbnb (about 20 minutes to downtown & airport) but there's a few in the area.  I'm definitely open to the idea of using the other unit as an Airbnb altogether - it should be quite simple to test and I could always go back to long term tenants if it doesn't work out.  How has it been going with your fourplex?  Do you have all of the other units on Airbnb?

Drew,

Congratulations! Way to go! Let this be the first of many steps my friend. What ever your day job?  You can to this in addtion to it. You have just lit the fuse for exciting path of ownership! Best of luck. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.