Wholesaler · Racine, WI · Member since 2015 · 143 posts · 84 votes
5y
Kyle: I live in downtown Racine and have dabbled in RE investments over the past three years. My most recent deals were 2 wholesales in Kenosha, which netted me about $8500 total.
I looked at some rental properties in the City of Racine last year but could not justify the upfront investment. Everything was overpriced and required too much additional capital to update the properties. My evaluation, however, was geared toward cash flow.
I suspect that there is a lot of money coming in from the west coast that is patiently waiting for long-term capital appreciation. I shifted my thinking earlier in the year to develop a financing and investment structure to attract that money, but then COVID shut down a lot of my interactions.
Let me know if you're looking for something specific. I'm boots on the ground for a few people where the city limits of Racine are concerned. The County is a much bigger picture. There may be more opportunities for cash flow properties in some of the smaller collar towns, like Sturtevant and Franksville. Burlington also has strong potential.
Paddock Lake , WI · Member since 2017 · 21 posts · 13 votes
5y
I am finishing my first BRRRR in Racine. Racine has a lot of properties that are in need of large rehabs, but the city is growing and improving. I don't think that it is great for market for fix and flip, but that is not my focus.
Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
5y
I know lots of people that invest in Racine. I've yet to buy anything in Racine but I've done deals in the surrounding areas. I prefer the Kenosha market over Racine due to it attracting more IL people. I think Racine lost some of its glamour after Foxconn pulled out of most of its promises. That being said, there are still some great opportunities there.
Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 431 votes
5y
I have two investor clients who are doing the long-term capital appreciation route in Racine. They look to Kenosha for their cash-flowing deals for the exact reason that Brock Morgensen stated. It's become an ex-patriot haven for Illinois companies and people. Racine lost a lot allure when FoxConn changed, BUT its time will only come as Milwaukee and Kenosha both continue to grow.
I have been investing in Racine for three years now and will agree with just about everything said on this thread regarding the condition of the properties, however, it is still a decent cash flow market IF you are willing/able to take on the rehab. Kenosha has a slightly higher barrier to entry than Racine from an acquisition perspective, but the properties typically require less rehab. Rents are comparable in both markets, but I would wager Kenosha will see greater appreciation over the long-term based on the gentrification from IL and surrounding areas.
I am looking to expand into the Racine area (or surrounding areas based in expert advice from others).
I would be interested in chatting with you about getting into the area. I am not into fix and flips, more of a buy and hold for cash flow. Don’t mind rehabbing the properties - as long as the value is there.
Additionally, I do have hard money lenders I work with, but would like to expand my contacts with local lenders (as they have a better understanding of the local market). If you have any recommendations, that would be greatly appreciated.
Investor · CA · Member since 2020 · 32 posts · 16 votes
5y
Great thread, I've been looking into this part of the Midwest for long term holds for cash flow. Wondering if anyone who had invested there already can advise on good neighborhoods in both cities? My alerts on Zillow seem to have good initial figures so definitely peaking my interest.