New Investor Looking for First Rental Property in Milwaukee

20 Replies

Good Afternoon BP!  My name is TJ Plotkin, and I'm new to real estate investment.  I'm learning more and more everyday on the site, so thank you all for your informative contributions.  I'm in the Navy and currently live in Honolulu, but am mainly interested in rental property in the Milwaukee area because that's where I call home.  

Like I said, I'm mainly interested in rentals in Milwaukee, but I'm also a soon to be agent in Hawaii and would love to work with any of you in that role, and with a partner am also looking at flipping and wholesaling on Oahu.  

Once again, thanks for all the information you've posted and the insight you've shared.  I hope to work with as many of you as I can in the future.  Cheers!

Welcome @TJ Plotkin !

I was born and raised in Honolulu but live in San Francisco now. I wouldn't mind doing some deals back home in Hawaii.  It'll give me a great excuse to go back home more often! Good luck with deal hunting and keep us posted on your progress! 

I have a property in west Milwaukee that I have equity in looking to move to Waukesha and leverage more efficiently. I also own property management biz and would continue to manage if you wanted. If interested let me know. 

Adam 

Originally posted by @Rebecca Holmes:

Hi TJ, 

I come across off market rental deals often in Milwaukee. What areas your interested in and price range/cap rate criteria? 

Hi Rebecca, thanks for the reply. I have a lot of family in and am most familiar with the area in and around Greendale, Hales Corners, and Franklin, so I'd be most comfortable around there. My available cash for investment is $15k-ish, and I know that won't normally get the job done in the areas I mentioned, but I have seen opportunity in the past and believe it can be done when buying at closer to wholesale. I'd be looking for a minimum 10% cash on cash ROI and will have an agent and a property manager, so those numbers would have to be included in the figuring of the ROI. I like both SFR and MFR, but prefer MFR if all other things are equal.

If anyone sees an issue with what I've laid out here, or thinks I need to add something or broaden my criteria, please reply and let me know.  I think input from people already doing what I want to do in the area I want to do it is more valuable than any blog i can read or video I can watch.

@Adam McCarthy ,  I attempted to reply to both you and rebecca in a single post, but couldn't figure out how to add you both in there as the blue highlighted link.  I'd appreciate your input as well.  Hopefully we can help each other in some way.

Hi TJ, 

If you find a property rental ready for 15k in those areas, I will want to buy it too :)

I grew up in Greendale and Greenfield and my sister lives in Franklin so I'm very familiar with that area.  

Anything is possible....I will let you know if I come across anything. 

tj, it can be done but in my opinion you should leverage your money with a loan. If you can get a 20% down loan then you can get a duplex that's $90k ish. Very possible. I would also put in some seller credit (addendum A) so you can keep as much of your cash as possible. 

The propert I mentioned earlier would not be a good fit, as it is a 5 unit for $220k, but there are many duplexes that would easily get you 15-20% cash on cash return- but only if you leverage with bank money. 

Originally posted by @Adam McCarthy :

I should have explained the finance section of what I was looking for more clearly I think.  I said I had 15k cash because I'm still investigating finance options and am not sure what my max loan amount will end up being with that cash in.  I figure around 100k orso with 85% LTV, but if i can get a higher LTV I will.

I don't think you will be able to get a loan for less than 20% down unless you plan on owner occupying. And the inventory for rentals in the suburbs you mentioned is virtually or possibly completely non-existent. And highly unlikely there will be anything under 100k. I think you will have to look in the city or in some of the less expensive suburbs that have actual rental inventory (West Allis for example) if you want to put that 15k to work. Im sure you could find a decent SFR in an average neighborhood in Milwaukee for around 50k that will rent for about $900.

@TJ Plotkin

Nice dude another realtor vet. I always tell vets to buy property because it is so much easier for us. I'm Air Force and have utilized VA multiple times. The VA is a huge advantage for us to invest. I would go as far as to call it cheating in a way.

What vets are doing in the mainland with the fourplex I'll live in one and utilize my VA technique is a good example.

Originally posted by @Manly Souza :

@TJ Plotkin

Nice dude another realtor vet. I always tell vets to buy property because it is so much easier for us. I'm Air Force and have utilized VA multiple times. The VA is a huge advantage for us to invest. I would go as far as to call it cheating in a way.

What vets are doing in the mainland with the fourplex I'll live in one and utilize my VA technique is a good example.

The VA loan really is a solid benefit, that's for sure. I'm using mine for my primary residence now, but wasn't really hip to the house hacking beforehand, so I'm stuck where I'm at for now VA wise.

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