im looking to invest in multi unit property. I continue to search around my area which is chicagoland suburbs. At the same time i see extremely low priced duplexes in milwaukee wisconsin. Yes i know some are in tough neighborhoods but some arent all that bad. They all would produce much better cash flow than things in my area...possibly 1300/mo in rents for 30k properties. Anyone have thoughts on these properties? And no i am not very concerned with appreciation. Thanks for your thoughts
I too would be interested in this as well if anyone has any thoughts. I'm about an hour north of Milwaukee and was looking that way yesterday and was shocked by the prices. I do not know the neiborhoods there though so I have some research to do before I'm comfortable investing there. Happy investing!!!
@Renaldo Barbini Yes the city of Milwaukee can be great for cash flow. To give you an example I rehabbed a duplex that I invested a total of $45K in, rents are $1,100. It's a decent area, and I have what I consider to be solid tenants. But we do also have some neighborhoods that can be almost as scary as the ones portrayed in "The Wire" in my opinion, and that is obviously a big reason for those prices. I'd recommend you start collecting information from a Milwaukee realtor who works with investors (look for Jenkins Ramon, he is very active on BP). Also check out the Milwaukee Dept of Neighborhood Services website - they are the ones who will conduct at a minimum an exterior inspection after you buy and will require you to comply with anything they consider a defect. And when you don't meet their deadlines they will fine you, and unpaid fines will end up on your property tax bill.
If you get a $30k duplex likely you will have to spend more money fixing it up. And if it has tenants in it already, who knows what kind of tenants they are.
thanks everyone for your input. Im very new to this site and really appreciate all this great feedback!
I walked through a couple of those Milwaukee properties before I bought out in Waukesha. I can give my take on them if anyone is still interested.
Id personally stay away from 30k but 60-75k should get you into some decent areas where $1300-$1500 would be expected/month.
I would add generically that the higher the price the lower the net income, but also the less "tenant issues" you will have. I have even seen a difference between properties in the 90k range vs properties in the $140k range as far as tenant quality and "issues".
It's all about your investing goals. I would suggest you decide what type of properties you want knowing that as cost goes up, typically margins go down, but ease of ownership will rise.
Good luck on deciding what kind of investing you want to do!
We do a lot of volume in MKE and have been having a tougher time finding good deals on duplexes in good neighborhoods. They tend to go very quickly when we do get one.
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