Milwaukee investing?? (I live in Chicago)

Multi-Family and Apartment Investing
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Milwaukee investing?? (I live in Chicago)

Mike Madeja
Chicago, IL · Member since 2016 · 2 posts · 2 votes

Hello, just wondering what your thoughts are... I currently live in Chicago. A big reason why I don't want to buy a place here is the mass amount of debt Chicago and Illinois is in. I curiously looked at Milwaukee and the prices seem way cheaper although most of the multiunit housing doesn't look at great visually. Just wondering if any does remote investing like that? It's not that far from me IE I can drive up there. I've been wanting to invest for a while but the whole debt thing scares me. Especially if I have big problems and kills my cash flow.

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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
10y

I do!  Feel free to PM me with questions.  

Having properties in both cities I can tell you Milwaukee is much more tenant friendly, but the city is always involved with your business (not in a good way)  properties are cheaper and the rent ratios are higher, but so are the expenses.  It is a lot more work.  

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  • Sam Erickson
    Real Estate Broker · Milwaukee, WI · Member since 2014 · 338 posts · 129 votes
    10y

    Hey @Mike Madeja  I personally don't do any remote investing however I have clients from your neck of the woods all the way out to  CA that invest in Milwaukee, so if can differently be done.

    Prices in the greater Milwaukee area can vary substantially, as does quality.  You can find good looking properties but you are going to pay for them.

    Send me a PM if you have any specific questions, always looking to connect.

    Sam

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  • Jason BottPro Member
    Insurance Agent · Nationwide · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Mike Madeja, look at @Brie Schmidt profile.  She lives in Chicago and invests in Milwaukee.  She was on one of the earlier BP podcasts, just don't remember which one.

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  • Svetlana Foley
    Realtor · New Berlin, WI · Member since 2016 · 118 posts · 47 votes
    10y

    Welcome to  BP! Many investors from Illinois have portfolios in Milwaukee, for the reasons you mentioned.  Definitely look up Brie Schmidt.  You also should be able to find a good PM for remote managing.  Dawn Anastasi is a good connection in that regard.  Always feel free to reach out - we Wisconsinites are very helpful people!

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    10y

    I do!  Feel free to PM me with questions.  

    Having properties in both cities I can tell you Milwaukee is much more tenant friendly, but the city is always involved with your business (not in a good way)  properties are cheaper and the rent ratios are higher, but so are the expenses.  It is a lot more work.  

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    3Reply
  • Adrian G.
    Real Estate Investor · Chicago, IL · Member since 2008 · 318 posts · 30 votes
    10y

    I live in Chicago as well, and dont really invest locally too much anymore. So many better deals else where, I pretty much go any where these days. As @Mike Madeja said, the debt is ridiculous and sometimes there is more hassle then its really worth.

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  • Damien C.
    Investor · MA · Member since 2014 · 51 posts · 17 votes
    10y

    Hey Mike. I invest in Milwaukee but more on the single-family rental side of things (at the moment). Regardless, feel free to PM. To your comment about state and municipal debt: Are you concerned about the long-term economic health of Chi-town and the surrounding areas? Or are your concerns more closely tied to property values and rents in the near term? Or increasing property taxes? I am just curious.

    In case it is relevant, there are big advantages to investing in MKE, but, in my opinion, booming economic growth is not one of them.

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  • Zarak Sharwani
    Wholesaler · Brookfield, WI · Member since 2014 · 76 posts · 28 votes
    10y

    @Damien C. do you have a pm helping you manage? would you recommend them?

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  • Marcin Talaga
    Real Estate Broker · Chicago, IL · Member since 2015 · 102 posts · 53 votes
    10y

    Mike, I'm in the same boat as you.  I always saw myself investing in Chicago and buying many multi units, but I bought one and as I look for the 2nd I'm worried about which direction Chicago is headed.  I really like Milwaukee and have been considering looking for multi units out there I just can't seem to find the time to really research it.  The property taxes are getting out of hand in Chicago, the fees they are starting to come up with for everything is nuts, and the prices are high and finding a good multi unit is very difficult.  I've resolved to sending out letter to 6 flat owners with no success.  If anyone has any good input on Milwaukee or any other areas not too far from Chicago I'd love to hear it.

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  • Mark Shaffar
    Real Estate Agent · Madison, WI · Member since 2015 · 328 posts · 88 votes
    10y

    I invest in Milwaukee myself. The city is fairly active on inspections making sure you keep up appearances, costly as @Brie Schmidt mentioned but that can be a good thing for the neighborhoods too. I like MKE for the low price to rent ratio and the low vacancy rates.

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