My name is Alex Witte and I reside in the greater Milwaukee Wisconsin area!
I am interested in the 'buy and hold' investment strategy for single family homes in the greater Milwaukee area in the $0-$500k range.
My experience with real estate has been minimal I would say at this point. I purchased my first home in Sept 2015. I put a new roof on it, installed new floors throughout the home, finished the basement, and remodeled the master bathroom. I sold it in May 2017 and purchased my second home which I reside in currently and am working to remodel it.
I have skills in various aspects of home repair and work full time as a sales engineer so I am 'bankable.'
I hope investing in real estate will allow me to quickly gain flexibility of work hours/location so when I have a family I can be as involved of a father as possible. My current sales position has me traveling quite often and on short notice.
Welcome to biggerpockets and good luck with your investing
Welcome to BP! Feel free to reach out if you are interested in working together or just to talk shop. All the best to you.
Hello @Alex Witte , welcome to the site! Here are some good places to start:
http://www.biggerpockets.com/meet - find and connect with other BP members that are in your area.
http://www.biggerpockets.com/alerts - Set up keyword alerts to be notified of the topics that interest you.
And, of course the
http://www.biggerpockets.com/forums - ask any question about real estate!
See you around!
Welcome @Alex Witte
Exciting goals you've shared especially leveraging Real Estate to quickly gain flexibility in both time and location so you can spend more time with your future family, which is a great WHY behind taking the action.
Great community on BP and here in MKE to support your goals. Milwaukee REIA, Brew City Meet Ups, and Apartment Association of Southeast Wisconsin are great groups to network with other investors with similar goals.
Regarding the range of $0 - $500K for SFH, how did you decide on that particular range? I ask as a typical rule of thumb for the ratio between the rents collected and purchase price is the 1% rule. So for a $500K rental property you'll usually want around $5,000 a month in rent. In this market it's difficult to find tenants willing to pay $5K a month. So a consideration may be to purchase SFH in the $0 - $150k range with rents more inline with the 1% rule and buy several properties in that price range. The $500k purchase price you'll typically have better cash flow with a multifamily of 5 or more units and in the Milwaukee markets $500k can get you a 10 - 12 unit apartment depending on where you're investing for example. More doors (more streams of income, vacancy has smaller impact), less roofs (fewer capital expenses). SFH is a great strategy and your money can go pretty far in MKE, just wanted to share some details behind those price ranges.
Best wishes on the exciting journey.
@Pat Parrillo I appreciate the comments and questions!
I was probably a little ambitious when I specifically stated "buy and hold" in the "$0 to $500k" range. I have knowledge of the 1% / 2% rule and realize in this area that $5000 or $10000 for rent from a single tenant is absolute ludicrous.
I am specifically focusing my first few deals to be the $80-$110k and focus on the 1% rule(I obviously hope for 1.5% or 2%).
With my current full time job - cash flow at these levels will not be an issue. I hope to find my first few deals to increase my cash flow and target larger deals like you stated with multi units. Ideally with the pricier SFH I would do more of a Fix an Flip strategy. I worked in construction prior to engineering school and I have the skills necessary to do a Fix and Flip without the need for an external contractor.
All of the blog posts/podcasts state to be specific so I was trying to narrow the scope of my goals.
It's hard when you want to do it all :D lol
@Alex Witte Welcome to BiggerPockets! Please feel free to reach out I am always interested in connecting. Happy Investing!
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