After much contemplation I finally decided to begin the process for buying an investment property in Wisconsin. I'm selling my home in Whittier, California. (I should cash out with at least $150K) Im gonna move to Wisconsin in to a multi family (4-unit) home (50-70K) and let the tenants pay my cost of living. Any objections?
WI is alot different than the peoples republic of cali. The 50-70k 4 units you may find may not be in the most desireable area to live in. Make sure you get your concealed carry license....... Good luck :)
Did you find a new job in the new location? Would love to do what you are planning.
I had the same thoughts... If you have 150k, you might want to consider a more expensive 4plex. If you can get a 4plex for 50-70, you should be able to get one for 100 that will have less issues down the road, and is in the best location... and you'll still have money left over.
Thanks for the comments. I've been to Wisconsin as currently operate in the field for my job fixing printing presses. I want to find a nice location (I've been looking at Manitowoc and two rivers) and I am willing to spend more if needed. My particular case is that I am sick of traveling for my job and missing out on my children growing up. I want to use the opportunity afforded to me by the equity in my current house and just "go for it." I wish I had someone to guide me in a better direction but this is all I can think of.
Good luck with the new endeavor!
@Jesse Carreon Just a thought, do you fly a lot? consider proximity to an airport wit reasonable fares, Manty and Trivers (local speak) are a Hike to Milwaukee Airport, and Green Bay is quite expensive to fly out of. just a thought,
Unless you fall into a great deal, a $50-70K 4plex is gona be pretty rough, both in condition and location, get familiar with the areas, and if you do settle in Manty, Just remember its Cooler Near the Lake, not sunglasses and board shorts cooler, like 50 degrees in late June, and 20 miles west its 80 degrees. just considerations. Good Luck what ever you decide!!!
I concur, I just bought a duplex in green bay and was looking at a few triplexes. If you buy one for $40-70k, you'll have to likely burn it down and start over. The duplex I bought that cashflowed was 63k and it was a guy who had cancer who needed to sell quick. The other 30 duplexes/triplexes were dumps...
I also second the motion on concealed carry Green Bay has deteriorated very rapidly in the 10 years I've lived here.
There were some very very nice DUplexes for 80-90k range getting 15-1600/mo rent between the two units. Start looking around on rentmeter and the MLS before moving that far. If you get serious Kathy Feldhausen was my realtor at Coldwell Banker and she was AWESOME.
One thought is you could keep your house in CA and rent it out. Tap into the equity with a HELOC, use the HELOC to brrrr (buy, rehab, rent/live there, refinance, repeat) a four plex in your new location. You might even be able to use a conventional 95% ltv loan since it will be owner occupied....? Worth looking into! Then you'd have 5 units right off the bat.
You guys all sound like pros. I'm way out of my league. I'm gonna have to lose hard on my first investment probably. Oh well. No one gonna hold my hand on this one.
If you have $150K there is no reason why you cannot buy a great four plex in a suburb of Milwaukee. Unless you want to pay all cash, use leverage and a 20% down payment has you in the $250-300k ballpark. For that price, especially discounted, you will not be in an area where concealed carry is required. Despite popular belief there are great schools, businesses, etc. in and around Milwaukee. If you were looking for something like Manitowoc, I would suggest looking in Ozaukee County.
@Jesse Carreon I have a friend that might be interested in selling an 8plex in Appleton if you are interested. PM me if you are interested.
Hey Jesse! Welcome to BP? I'm just wondering where you were looking to buy in the area? And what your price point is? As others have commented, there's great variance in the area in the cost of multi-families. Maybe a good place to start for getting an idea (and understand that you could offer whatever you wanted on these properties), is Milwaukeemultifamily.com. I just like to cruise it to see what's out there. I think he just compiles the listings from all other sources, so obviously won't have off market properties. Best of luck.