Multi Unit investing in Madison, Wisconsin

[Douglass Belt]

I am looking for some advice from anyone who has invested in the Madison market. I have lived here for about 7 years and notice that prices for 2+ units are high and very hard to find deals where the numbers make sense. Is there anyone out there who has had success investing in the Madison area on a smaller multi-unit level that would be willing to share their stories, advice, success/failures with me? Are there any areas on the outskirts of Madison anyone has had sucess in (Verona, Janesville, deForest, etc.)? It seems like only SFH are where numbers make sense but not interested in going that route.

 I know some of the larger apartment building owners in the city but they are at whole other level when it comes to advice so looking for someone on a level of 2-12 unit experience. thanks!!

[Zachariah Palmer]

Hi Doug, 

     I have had a little experience in the Madison area with duplex's.  Are you looking to do the rehab or buy and hold?  If you are looking to flip it single family is really the way to go.  If you are looking to buy and hold in Madison you need to get a property before it hits the market.  If you have decent management and a good price in Madison there is no reason that you should have a vacant property so that tends to lower the cap rate.  Unfortunately a 8% cap is pretty good in Madison unless you have done extensive remodeling and were able to raise rents in each unit.  I am license in WI but have found that it's not usually worth it to list a rental property as there is plenty of interest without paying the commissions.