Kansas-Mo, Milwaukee, St. Louis, Minneapolis, Indianapolis

Chicago, IL · Member since 2017 · 79 posts · 39 votes

Hi BP, Can anyone give insight on investing Kansas City-Mo, Milwaukee-Wis, St. Louis-Mo, Minneapolis-Min and Indianapolis-In? Anything feedback appreciated. Thanks...

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Todd Dexheimer

Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes

@Lee Lockhart all of those markets are very different. Milwaukee, KC and St. Louis will all have really good cash flow, but likely slow appreciation. The cities themselves all have had population declines and are seeing some growth in pockets, but more so in the suburbs.

Indianapolis will have decent cash flow (not as good as the aforementioned) with a chance for greater appreciation, albeit still slow. It's economy has become diverse and the population, especially to the north is growing and doing well.

Minneapolis is completely different. The city is seeing good growth with a very diverse and stable economy. The city and most of the suburbs are in very good shape. Cash flow in Minneapolis will be really low, as well as being able to find a "deal." This is by far the most expensive city.

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Mike Lowery
Rental Property Investor · Milwaukee, WI · Member since 2013 · 180 posts · 104 votes
8y
What do you want to know about Milwaukee? It’s probably easiest to include the cities you are interested in as keyword searches so that you get notified when they are mentioned. Or search the forums for specific information. If you’re curious about Milwaukee neighborhoods, deals, etc. I can provide some information
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
8y
Lee Lockhart I’m an agent and investor in Minneapolis Saint Paul area. What would you like to know?
[email protected]512-888-9122
The Moorhead Team5140 Reviews
Website View Page
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Todd Dexheimer
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
8y
@Lee Lockhart all of those markets are very different. Milwaukee, KC and St. Louis will all have really good cash flow, but likely slow appreciation. The cities themselves all have had population declines and are seeing some growth in pockets, but more so in the suburbs.
Indianapolis will have decent cash flow (not as good as the aforementioned) with a chance for greater appreciation, albeit still slow. It's economy has become diverse and the population, especially to the north is growing and doing well.
Minneapolis is completely different. The city is seeing good growth with a very diverse and stable economy. The city and most of the suburbs are in very good shape. Cash flow in Minneapolis will be really low, as well as being able to find a "deal." This is by far the most expensive city.
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Mike Lowery
Rental Property Investor · Milwaukee, WI · Member since 2013 · 180 posts · 104 votes
8y
In looking at the figures: St Louis - https://www.biggestuscities.com/city/st-louis-missouri KC - https://www.biggestuscities.com/city/kansas-city-missouri Milwaukee - https://www.biggestuscities.com/city/milwaukee-wisconsin It appears as if St Louis has been the only city to see a significant decline in population. In the last 18 years, Milwaukee and KC have have remained relatively the same. Also, IMO cash flow is king. Appreciation in any market is fairly speculative. Analyzing comps in hopes of potentially having a similar product that you can market to a similar buyer for a similar price. Appreciation potential should be considered ‘icing on the cake’ of an already sweet deal. What makes a sweet deal? Cash flow.
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Larry Fried
Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
8y
What kind of investing are you looking to do - buy, rehab & rent? flips? turnkey? SFR or MF?
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William S.
Rental Property Investor · Overland Park, KS · Member since 2015 · 492 posts · 234 votes
8y
Your team will outweigh which market is best. What city has a high quality PM, contractors, etc..
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Michael Tempel
Property Manager · Minneapolis, MN · Member since 2014 · 380 posts · 167 votes
8y
Originally posted by @William S.:

Your team will outweigh which market is best. What city has a high quality PM, contractors, etc..
William, couldn't agree more on this one. If you don't a have a solid team with the right background and ability to bring value through rent increases, value add, operations and accounting management you can take the best deal ever and see it fall apart.
On the flip side, you can take a loser deal and turn it around with the correct management in place.
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Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
8y
All of these markets have potential for good cash flow but of the 5 market, I would recommend Indianapolis and Kansas City. Two important factors when evaluating markets is jobs and population growth. Indy and KC are strong cash flow markets and also growing populations and jobs. Some of the other markets are pretty stagnant. The graphs below might be helpful. Markets like Dallas, Atlanta and Phoenix have more job and population growth but they are weak for cash flow. I've been active in Indianapolis and Kansas City for several years and know them well. Feel free to reach out if you'd like some help.
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Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
8y
Originally posted by @Mike Lowery:

In looking at the figures:
St Louis - https://www.biggestuscities.com/city/st-louis-miss...
KC - https://www.biggestuscities.com/city/kansas-city-m...
Milwaukee - https://www.biggestuscities.com/city/milwaukee-wis...
It appears as if St Louis has been the only city to see a significant decline in population. In the last 18 years, Milwaukee and KC have have remained relatively the same.
Mike, I have to disagree about Kansas City. According to the latest U.S. Census Bureau data, Kansas Cities population has increased 4.7% in the last 10 years.
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Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
8y
The job growth chart in my last post had an error in it. The growth number for Cleveland was incorrect. Here's the correct chart.
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Anderson Schulle
Turnkey Service Provider · Fort Worth, TX · Member since 2013 · 135 posts · 41 votes
8y
I live in Dallas-Fort Worth where I invest in real estate and have a property management company. But because I lived for 13 years in indianapolis in the past and the markets are very complementary to each other, I started to invest there as well and we also manage rentals there. I’d be happy to discuss your goals and needs. Indy is a quick drive from Chicago.
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Nicole Pettis
Flipper/Rehabber · St. Louis, MO · Member since 2008 · 489 posts · 300 votes
8y
@Lee Lockhart like everyone has mentioned, it depends on your goals & strategies. Currently I live in Milwaukee & it has seen huge growth & appreciation in many areas. You can still get good cash flow here just depends on the area.
My family lives in St. Louis & KC & both places have seen growth. Again, just depends on where you want to invest & what your goals are, not to mention the amount of money you have to invest.
Once you have that outlined & defined it will help you decide on the area.
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Matthew Iulo
New York, NY · Member since 2018 · 14 posts · 7 votes
8y
@Mike D'Arrigo I have a very simple question, what database/website/tool do you use to sort through and analyze city/submarket data. Like the @Lee Lockhart I have my cities narrowed down, but simply having trouble getting the necessary data. Thanks in advance.
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Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
8y
@Matthew Iulo I wish there was a single source or tool to get all the data but the majority of it comes from the U.S. Census Bureau and the Bureau of Labor Statistics,
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