I have a growing online e-commerce business. I've researched and understand the basics of real estate investing. I'm not going to switch any time soon.
But as my other business grows, there may come a time where it makes sense to diversify income streams. If I want to make the best ROI on my cash, where would I start?
FYI, I live outside of Milwaukee, WI so not too far from Chicago.
Milwaukee is a great market for high cashflow. The appreciation might not be as great but cash on cash metrics are strong. I invest quite a bit in the Milwaukee area. Feel to free to DM me with any questions. Happy to help!
@Dan Stelter real estate investors enjoy 4 sources of wealth:
1. Cash flow
2. Principal pay down
3. Appreciation, both forced and natural
4. Tax shelter
Most starting investors look at cash flow, because it is like the air you breathe. However, wealth is created with the other three. You can play around with the BP calculators and see what it takes to generate a million in cash flow, it takes huge amount of units. Numner 2,3, and 4 are major accelerators in the equation, the results may shock you.
You are lucky to be in Milwaukee, half the country wishes they could invest here. We have actually seen relativley strong appreciation in the last 6 years, last year alone median homes sales prices in Milwaukee county went up 8%. Not all areas perorm the same. Currently we have a covid induced shortage of inventory (sellers are hesitant) and buyers are driving up prices in bidding wars. I see a lot of offers 10k to 20k over asking in desireable neighborhoods, just lost out on one last night, 22k over did not cut it. I have seen offers without appraisal contingencies...