Hi @Brad Spencer I think the North Shore area is a solid investment, that's where most of our properties are. But there are several other interesting areas, depending on where your goals are. I will also tell you that the 2% rule is a great way to get yourself in trouble. I don't think it is the best use for a VA loan either, because you are not really leveraging much. Househacking works well with VA and you could do a hybrid BRRRR, but again not the best use of a VA loan, because the R-ehab part requires a lot of cash, which is exactly the point on the VA. Your best play with a VA loan will be to buy in an area where you will see natural appreciaton so your create equity without cash, and of course, cash flow.
@Brad Spencer I own in Grasslyn Manor, just north of St Joe’s and it’s a good area. I’d be happy to share numbers, neighborhoods and personal thoughts with you.
Thanks, John! I may just do that. I listened to her podcasts recently and I like her formula in Milwaukee.
And thanks for the tips, Marcus. What areas in north shore, specifically? I do plan on using the VA loan, and I found a lender that will cover up to 30k in rehab costs along with it. There’s many ways to skin a cat, but I was thinking of going for the SFH cash flow play because of the many exit strategies associated with it. I see what you’re saying about leveraging the debt, and have been toiling back and forth over which path to choose. I think purchasing with a VA, rehab, and then refinance so I can use the VA again quickly may be my best way to scale. I’m aware of the owner occupancy and other VA requirements, but also plan on refinancing pretty quickly. Thoughts?
And thanks to you too as well, Mike. I’d love to hear more insight of that area. I think it’s north of those areas of concern, but I’m not positive.
@Brad Spencer you would be correct. There are a few blocks immediately south of St. Joes that are pretty rough. Overall though, I think the city gets a worse rap then it deserves. I understand that people have concerns over tenants, vacancies, crime, etc. and you will have more of those dealing with properties in the city versus suburban neighborhoods. Your costs of acquisition are often-times significantly lower and its easier (IMO) to create better cash flow. I purchased two properties since November that I am returning over 12% cash on cash. One was land contract and the other was a cash deal.
Feel free to reach out with any additional questions.
I like both those areas. In my opinion, price points around St Joe's will be less expensive than North Shore and the Trulia crime map is quite colorful in the St Joe's area but I personally like 53208 & 53210 as do many local investors.
Brew City REI is having a meetup this Saturday showcasing local lenders in the area. I hope to see you at one of the events or the REIA.
Good luck in your REI adventures Brad.
@Brad Spencer Any chance you remember what podcast you listened to about Brie investing in Milwaukee? I've trying to put together a list of some better podcast to listen to and would love to know!
@Mike Lowery Do you do a lot of investing in the Milwaukee area? I'm just getting started in Milwaukee and am looking to create connections with other like minded people. I would love to know more about your previous deal and findings!
@Jonah White shoot me a PM with your contact information and we can set up a time to talk.
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