Where to invest in Wisconsin??

Buying & Selling Real Estate
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Where to invest in Wisconsin??

Dylan Henke
Hustisford, WI · Member since 2015 · 34 posts · 11 votes

I live in a really small area right now, but I'm surrounded by 2 bigger cities which are Milwaukee and Madison. I'm having a really hard time figuring out where to invest! I want to start out flipping. Everything included in rehabbing is in my nature and right up my alley. However I want to use that as a tool to fund rentals and BRRRR in the future. I have no idea where to invest in Wisconsin! My problem is I really don't want to go towards Milwaukee. I am down there all the time for work (apprentice electrician) and I never have a clue where the good and bad areas are. I do not want to invest in those areas right now. I hear Madison is priced really high though because they are one of the fastest growing cities in America. The towns I can think of would be places like Waukesha, Brookfield, Watertown, Fond du Lac, West Bend, Beaver Dam, but they are all much smaller and I don't know what the markets are like. I can't find anywhere online that lists where are good markets to flip in in Wisconsin. I don't think I would mind investing in Milwaukee if I new where some better places to invest were. I would just feel more comfortable somewhere outside of Milwaukee where there is somewhat of a market for flipping. Any help??

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Scott Schultz
Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
10y

Honestly @Dylan Henke this stuff works anyplace if you figure out the code, I know for a fact you can do it in your own backyard if you study the market, and figure out how you have to do deals, I have flipped in Bigger towns like Sheboygan, Fondy, as well as West Bend, I have done small towns too, I did one in Ripon, Beechwood, and Wild Rose, some of the places I have flipped are depressed, and some are hotter, you just need to know you have a great deal and do your flip for the best ROI, not the I want flashy Quartz Countertops, and High end tile, when the return will be the same with laminate and sheet vinyl, doing far away flips is a pain, I have done several over an hour away, NOT FUN all the dashboard time. study your area and dont get too excited that you buy a bad deal to have one going, I've done that too. I just closed my 17th flip I would be happy to share some experiences. good luck.

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  • Matt Lea
    Madison, WI · Member since 2015 · 30 posts · 4 votes
    10y

    I am with you. I live in Madison but costs are crazy high. If you figure out the answer to this let me know.

    0Reply
  • Dean Schwertfeger
    Investor · Woodruff, WI · Member since 2016 · 9 posts · 1 vote
    10y
    Have you thought about investing in the Minocqua/Woodruff area up north? We have several units and continue to look for places to buy and hold. We do have one SFH that we are in the process of flipping and would consider selling it before it is done (don't have enough time for all the projects we have going), it is basically gutted and ready to be put back together. If your interested pm me and we can talk.
    0Reply
  • Nathan Schoenborn
    Self Employed · Milwaukee, WI · Member since 2015 · 135 posts · 45 votes
    10y

    Whitewater is growing as a college town. Being a college town also means rents are generally inflated for college students which is a good thing for landlords. Maybe Google "fastest growing cities in Wisconsin"?

    1Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y
    Originally posted by @Matt Lea:

    I am with you. I live in Madison but costs are crazy high. If you figure out the answer to this let me know.

     Will do! I wouldn't mind investing by you, but once again I don't know the area that well and I hear its kind of a bad market for it right now.

    0Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y
    Originally posted by @Nathan Schoenborn:

    Whitewater is growing as a college town. Being a college town also means rents are generally inflated for college students which is a good thing for landlords. Maybe Google "fastest growing cities in Wisconsin"?

    Not a bad idea. Could be another possible area! Definitely looking at rentals in the near future. Thanks Nathan

    0Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y
    Originally posted by @Dean Schwertfeger:

    Have you thought about investing in the Minocqua/Woodruff area up north? We have several units and continue to look for places to buy and hold. We do have one SFH that we are in the process of flipping and would consider selling it before it is done (don't have enough time for all the projects we have going), it is basically gutted and ready to be put back together. If your interested pm me and we can talk.

    I have not thought about it, but I know that's a real hotspot for tourists! Love that area up there. PM sent. Thanks Dean

    0Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y

    Maybe Oshkosh or Appleton??

    0Reply
  • Karmen Feist
    Real Estate Coach · WI · Member since 2015 · 30 posts · 30 votes
    10y

    Hi there!  We are from Madison but own only 2 places in Dane county.  You're right about the price being high here.  We know people who are still doing flips in the area but it is a much harder area to find deals.  Most of what we own is in Rock County and Fond Du Lac but are mostly only buying multi families now, not sure about the flip markets there.  Another area for great deals on multi is Manitowoc area but so far no luck with management there, we have to manage them from afar which is difficult.  I have been intrigued by the Oshkosh area in the past as well.

    Let me know if there is anything else we can help with. We've been at this a while and are more than happy to share our experiences. My husband is also a broker so we have access to the south central MLS if that would help at all, let me know.

    Good luck!

    1Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y
    Originally posted by @Karmen Feist:

    Hi there!  We are from Madison but own only 2 places in Dane county.  You're right about the price being high here.  We know people who are still doing flips in the area but it is a much harder area to find deals.  Most of what we own is in Rock County and Fond Du Lac but are mostly only buying multi families now, not sure about the flip markets there.  Another area for great deals on multi is Manitowoc area but so far no luck with management there, we have to manage them from afar which is difficult.  I have been intrigued by the Oshkosh area in the past as well.

    Let me know if there is anything else we can help with. We've been at this a while and are more than happy to share our experiences. My husband is also a broker so we have access to the south central MLS if that would help at all, let me know.

    Good luck!

    Eventually I want to own multi's too. I mainly want to flip because I am a person who loves to see a before and after product. I want to gain rentals to eventually surpass regular income, but I want the flipping income to be a tool for that. Thank you so much for the info and the offer! That would be great though because I am trying to sift through Realtor.com and Zillow and I'm getting no where! Realistically I just need help finding my first flip to get my feet wet and get some capital built up. I need that first experience so I can keep jumping into more and more. I watched your video online and its very inspiring! If anyone wants to check it out they can find it here(Hope you don't mind me sharing this Karen!) :  

    0Reply
  • Karmen Feist
    Real Estate Coach · WI · Member since 2015 · 30 posts · 30 votes
    10y

    Thanks Dylan,

    I haven't done videos in a bit but love hearing the positive feedback.  So funny how things hit you at just the right time.  I've been considering doing more of them recently but just haven't got going again and really need to get my website up to par.  Thanks for the kind words.

    Just as a heads up, we've had much success buying multi families that are bank owned or in pretty bad disrepair.  We started with private money for the purchase and rehab and then have refinanced quite a few.  You don't necessarily have to do it with single families.  Also, our private lenders have tended to like the idea of the properties cash flowing fairly quickly (meaning you can afford the payment to them).  The market has changed some in this regard but we are still finding deals pretty frequently. 

    You might be able to accomplish what you're trying to accomplish by just shifting your thinking a little bit.  

    Let me know when/if you're around and what else we can do for you.

    0Reply
  • Scott Schultz
    Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
    10y

    Honestly @Dylan Henke this stuff works anyplace if you figure out the code, I know for a fact you can do it in your own backyard if you study the market, and figure out how you have to do deals, I have flipped in Bigger towns like Sheboygan, Fondy, as well as West Bend, I have done small towns too, I did one in Ripon, Beechwood, and Wild Rose, some of the places I have flipped are depressed, and some are hotter, you just need to know you have a great deal and do your flip for the best ROI, not the I want flashy Quartz Countertops, and High end tile, when the return will be the same with laminate and sheet vinyl, doing far away flips is a pain, I have done several over an hour away, NOT FUN all the dashboard time. study your area and dont get too excited that you buy a bad deal to have one going, I've done that too. I just closed my 17th flip I would be happy to share some experiences. good luck.

    4Reply
  • Charlie John
    Investor · Twin Cities, MN · Member since 2015 · 130 posts · 111 votes
    10y

    @Dylan Henke

    There is no sacred place to flip houses man. You just need to get a bargain under contract and then fix the house according to the neighborhood/price point.

    You will always make money if you buy something at 70% minus rehab. 

    There are so many cities, towns, markets, submarkets all over your state. Just focus on one and start making it happen. 

    0Reply
  • Kyle Hipp
    Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes
    10y

    I live in Appleton and I love this area. I primarily purchase properties that need a lot of work, fix and improve and rental out (bbbr). I have a couple in menasha, and Kaukauna but primarily in Appleton, and I like that best. 

    Oshkosh has good looking numbers but several issues. It is a bug college town which can be profitable with prudent management. The city is poorly run and actually just passed a rental inspection program which is violation of state law and does not set a good tone for landlords. 

    At the end of the day, I second what another poster said. You can do this anywhere. I play in my backyard because that is what I know. I am personally very hands on so it works best for me. There are deals in every market.

    1Reply
  • Frank Eimiller
    Rental Property Investor · Fond Du Lac, WI · Member since 2015 · 261 posts · 78 votes
    10y
    You're in an awesome spot. I have a friend here who only buys his rentals in Milwaukee.. lots of 40k properties all in renting for $850.. as you know, make sure you know your areas haha. I really like Sun Prairie. A lot of new jobs in the area and every time I'm down there I see tons of poorly managed multifamily buildings! Good luck!
    1Reply
  • Ramon Jenkins
    Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    10y

    I'm UW-Whitewater alumni and it difficult market 

    -> inventory very properties

    -> Must have good connections for contractors 

    -> school already is session , so until next May you have a difficult time locating tenants / professionals who pay for renovated housing

    Waukesha/Pewaukee and Brookfield would be okay areas for buy hold

    0Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y
    Exactly Scott Schultz I want to flip homes, but I knowing look at the surroundings homes and what they have is important. Thank you guys for all the insight! You have a good point Frank Eimiller I'm kind of in the middle of all markets right now and that kind of gives me opportunities to test in all these markets! Charlie John John that's true, I'm just more worried getting stuck with paying on a house in a dead market that won't sell. Kyle Hipp thanks for the insight. Those can be kind of far drives for me anyways, but that doesn't mean I won't travel for the money either. Yeah I totally agree about Oshkosh! I have enough markets around me that I probably won't ever even think about Oshkosh lol
    0Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y
    Jenkins Ramon thanks I will keep that in mind for the future! It's nice to know people who live in all these different markets and have experience in them. I travel to all these different markets all the time, but I never knew which were better ones to invest in.
    0Reply
  • Scott Schultz
    Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
    10y

    @Dylan Henke  Charlie is playing too tight of numbers in my opinion, only having 30%  doesnt give you much room for error, unless you are playing north of $200K.

    you cant fear the market, you need to know it inside and out, if you buy right enough, you can always sell in any market. my goal is to initially list 10% below my competition, so that goes into my calculation, I have never had a property on the market more than 4 months listing to closing.  have a plan for when price changes are appropriate, and how to incentivise agent to find you a buyer. I have been a broker for 10 years, and party to some 600+ transactions, over that time I have learned There is only one thing that sells a house, the right price Period. If you price right, it will sell, dont make excuses, get out there and roll the dice!

    1Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y
    Thanks for the tip Scott Schultz ! I'm gaining more and more confidence everyday. So if I get a property under contract in the next month or two and rehab it over winter is it true it will be harder to sell then with it being cold? I always hear people say it's a harder time. At this point I almost don't care because I just need to get something under my belt
    1Reply
  • Scott Schultz
    Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
    10y

    If you get it under contract in the next 30-60 days and close in 30-45 days then a 60-90 day rehab, will bring you to spring for marketing. it is tougher to sell in winter, but properties do sell in winter. it also comes with more cost for heat and snow removal, but that should not be a deterrent.  your fist flip will probably not go as smooth as you plan, and your hold time will be longer than planned, (you could get lucky) Dont get into one to be into one though, it has to be a great deal.  Good Luck!

    0Reply
  • Charlie John
    Investor · Twin Cities, MN · Member since 2015 · 130 posts · 111 votes
    10y

    @Dylan Henke 

    @Scott Schultz is right and that is what I meant about a bargain. A bargain will allow you to fix up the property and list it just below your comparable listings so that your house will sell fast and still make a good margin. Most wanna be house flippers will buy something at retail price, fix it up very nice and then will be forced to list it way above market value in order to make any kind of profit. You create your profit first by buying at a deep discount. 

    1Reply
  • John Weidner
    Chicago, IL · Member since 2014 · 710 posts · 200 votes
    10y

    Get your RE License so you can start opening doors and understand the market.  As others have said you can flip in any market as long as the #'s work. 

    And, don't be flipping your first property to far away.  Ex. if you live in Madison and want to flip in Oshkosh just because of #'s.   You will be there alot - you will spend too much time in the car and it will be tough to manage the project.    

    2Reply
  • Michael Henry
    Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
    10y
    Dylan,

    Feel free to reach out if you ever want to chat through the Milwaukee market. I agree with John Weidneir in avoiding a flip far away on your first go around. You want your process to be a well oiled machine when you go that route. Long term you may want to consider the Portage/Stevens Point areas you can get a lot of house for your money.

    Thanks,

    MH

    Originally posted by @John Weidner:

    Get your RE License so you can start opening doors and understand the market.  As others have said you can flip in any market as long as the #'s work. 

    And, don't be flipping your first property to far away.  Ex. if you live in Madison and want to flip in Oshkosh just because of #'s.   You will be there alot - you will spend too much time in the car and it will be tough to manage the project.    

    0Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y
    Thanks that is good to know Scott Schultz trust me I will be running my numbers a lot! That is something I eventually plan on doing John Weidner I live kind of in the middle of all markets here, but Milwaukee is definitely closest. That is s good point though and I would feel way more comfortable investing locally. Thank you Michael Henry for the offer. I would definitely like to chat at some point about Milwaukee. I know it's becoming a hotspot for investors, I just can't pick apart the neighborhoods.
    0Reply
  • Dylan Henke
    OP
    Hustisford, WI · Member since 2015 · 34 posts · 11 votes
    10y
    Thank all of you guys for your help! There's is some great insight here for investing this part of Wisconsin.
    0Reply
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