Buying 4 plex in Milwaukee ,Wi , is it worth it ?

8 Replies

Hello All ,

I live in NM. I have few Rentals here in NM. I build and keep and rent. I am looking at the prices for the some 4 plex buildings In Milwaukee,WI and the prices are unreal. I know some were in 10k for SFH and some duplex less than 50k. I understand all of those will be in C type or D type and you get what you pay for

Few of the 4 plex that I am looking at are in 200k range.

Will that be in higher C type or lowers B type Neighborhood?

What are the good rental Neighborhoods to look for ?

What type of rent do you get ? Maintenance on the buildings ?

ROI?

What are you paying for property Management for these kind of properties?

would like to see the opinion of any Investors or property managers who have dealt With with these type of deals.

I like Milwaukee.  The areas I find interesting are the ones that are rapidly appreciating, for example, south of Downtown, south of the Clock Tower.   The cheaper properties are on the West side of the city.  These are more impoverished areas.  And the prices are cheap.

Originally posted by @Sam Askar :

Hello All ,

I live in NM. I have few Rentals here in NM. I build and keep and rent. I am looking at the prices for the some 4 plex buildings In Milwaukee,WI and the prices are unreal. I know some were in 10k for SFH and some duplex less than 50k. I understand all of those will be in C type or D type and you get what you pay for

Few of the 4 plex that I am looking at are in 200k range.

Will that be in higher C type or lowers B type Neighborhood?

What are the good rental Neighborhoods to look for ?

What type of rent do you get ? Maintenance on the buildings ?

ROI?

What are you paying for property Management for these kind of properties?

would like to see the opinion of any Investors or property managers who have dealt With with these type of deals.

Hey there! 

Milwaukee is a great place to invest! I can't know for sure without an address or neighborhood, but I have seen 4 family going for 200k in the C/C- neighborhoods. Obviously with 4 family and larger it really just matters about the performance of the building. 

As long as it has a good rent history, then it could even be a D neighborhood and still be going for 200k. 

I typically withhold 10% for maintenance, 10% for vacancy, and 10% for property management. 

I still see about $150-200 per door after all things considered. 

Hope this helps. 

I sell and have a couple of them.  They are great investments if you buy them in the right place. Most of the ones you find will have under market rents which can be raised 1 apt at a time.  Ideal would be a vacant unit to update and feel out the marketplace on the rents.  I would lookup Craigslist , Rentometer.com, and hotpads to see the competition.  Good luck.  Milwaukee is still a bargain!

@Sam Askar That's a crazy question to try and answer. It depends what, where, and how you buy a property.

I see people in A/B class that have returns probably around 2-3% whatever metric you use (lame is my point, unless you're big on debt paydown, which is almost never why people like Milwaukee), but then I see guys doing hilarious and lease option rent to own setups where their returns are something like 1,000%...

And if you're going for value add hopefully you're shooting for that infinity symbol either way.

None of that is probably helpful, but a general point might be that they're super hard to find wherever you're looking, but there's probably deals in your own back yard just as there are in MKE.

If you're talking about the MLS, it's kind of a joke and generally none of the locals pay that.

Most MKE housing stock, especially in what are now C/D class areas, was built between 1890-1910. Well, 50+ years of neglected maintenance leaves you a lot of catching up to do. 

Out of state people do build successful inner city cash flow portfolios, but based on what I've seen over the last few years, for out of state folks it is the exception rather than the rule.

Best of luck wherever you're making moves!

There are many, many neighborhoods in my opinion that you could prospect. 

Probably just stay out of 53206 for now. 

I would say check out 53210, 53218, 53222, 53223, 53225, some parts of 53216 & 53208 for north side and on the south side, 53204 & 53215 and east side 53212. 

If you have actual addresses that you're looking at, use the Trulia Crime Map and you will see how colorful Milwaukee neighborhoods can be can be.