New investor in Milwaukee, Wisconsin!

Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes

Hi BP!

I am thrilled to say that I close on my first SFH in Milwaukee, WI (specifically 53208) this Friday. I plan to leverage it as a STR (Airbnb). I am an OOS investor as I currently live in San Francisco, CA.

Has anyone else been Airbnb'ing in the MKE area (or elsewhere in WI) with success?I hope to cash-flow better than a LTR but will switch to LTR if ultimately the math doesn't work.

Thanks and excited to connect with those of you investing in WI!

-Tato

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Rebecca KnoxBusiness Member

Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes

Search on Facebook for Traveling Nurses or Gypsy Nurse---the nurses post on there all the time looking for spots. Also, connect with Brenda Koehler--she's not on BP but she is on Facebook and in Brew City REI--she rents her apartments to traveling nurses.

Captain Save-A-Home LLC

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Dave CarpenterPro Member
Investor · Cedarburg, WI · Member since 2013 · 439 posts · 150 votes
7y
@Tato Corcoran congratulations that’s a great area! I’m assuming you have someone lined up to turn the unit between guests? I can’t speak too well for the Airbnb market in that area, but you are close to the medical college of WI and plenty of businesses in Milwaukee and out towards Wauwatosa and Menomonee falls.
Also, for what it’s worth (and if you haven’t seen headlines yet) the DNC will be holding their convention next July. You may want to consider pricing for that week since the demand will be just a tiny bit higher...
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Tato Corcoran
OP
Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
YES thanks on all fronts @Dave Carpenter! I have family in Cedarburg -- how many doors do you have there? Do you see good returns? I'm intrigued!
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Dave CarpenterPro Member
Investor · Cedarburg, WI · Member since 2013 · 439 posts · 150 votes
7y
@Tato Corcoran I have 1 door, my front door. All I own in Cedarburg is my personal home. I’d love to buy rentals here, but the price is too high for the rent. It’s a great city and great schools!
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Tato Corcoran
OP
Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
@Dave Carpenter out of curiosity, where are you thinking of buying an investment property?
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Dave CarpenterPro Member
Investor · Cedarburg, WI · Member since 2013 · 439 posts · 150 votes
7y
@Tato Corcoran looking at Port Washington these days. I think it’s a up and coming market, and closer to home, which is convenient too!
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Brett Kash
Flipper/Rehabber · Milwaukee, WI · Member since 2016 · 153 posts · 84 votes
7y
@Tato Corcoran congrats on the purchase! Keep us up to date on how your Airbnb experience goes. I have a few LTRs but have thought about whether Airbnb makes sense at all, for one of my units in particular. Good luck!
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Rebecca KnoxBusiness Member
Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
7y
Congratulations @Tato Corcoran. Is it in Washington Heights? Another investor told me her friend has a duplex over there where the lower is short term rental to a corporate employee and it was something crazy like $1500 a week she was getting for the lower. There's a group on Facebook called Short Term Rental University that might be interesting for you. Also, traveling nurses....
Captain Save-A-Home LLC
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Tato Corcoran
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Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
Thank you so much everyone! @Brett Kash curious where your LTRs are? @Rebecca Knox I just requested to join that FB group. Thank you so much. I would LOVE to leverage all the nearby hospitals for business. Do you have any ideas off the top of your head about how I could market to that audience/break into that market? I was thinking about cold calling or cold emailing each hospital's HR department to see if they ever need dedicated housing and seeing if that takes me anywhere.
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Rebecca KnoxBusiness Member
Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
7y
Search on Facebook for Traveling Nurses or Gypsy Nurse---the nurses post on there all the time looking for spots. Also, connect with Brenda Koehler--she's not on BP but she is on Facebook and in Brew City REI--she rents her apartments to traveling nurses.
Captain Save-A-Home LLC
Website View Page
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Tato Corcoran
OP
Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
@Rebecca Knox THANK YOU:)
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Brock Mogensen
Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
7y
Congrats! Milwaukee is a great market for cashflow. You should definitely try to visit the area when possible. Always good to have a sense of what's going on in the area.
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Tato Corcoran
OP
Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
@Brock Mogensen Thank you! I'll actually be there this weekend to close on my house. Very excited. What type of portfolio do you have in MKE?
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Brett Kash
Flipper/Rehabber · Milwaukee, WI · Member since 2016 · 153 posts · 84 votes
7y
@Tato Corcoran One in the Riverwest neighborhood and the other between Miller Park and West Allis
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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
@Tato Corcoran good choice; for STR I would stay close to the I94 corrdidor. Between Brookfield, the stadium, the Bucks arena and downtown. Be sure you know, who you are going to rent to and pick the property accordingly - certain types of properties and areas (like Brady Street) - will attract a party crowd and you'll end up with more people sleeping there then booked and some "party accidents" you have to clean up. Mequon and Cedarburg have a different audience and are attarcative, as well as if you go West out to lake country - but with lake homes you have to make most of your money in the summer and then maybe rent them for 4-6 months through the cold season. However, volume wise, while all those areas are great, they will only have a fraction of the business volume you have downtown, so I'd probably stick with that.
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Tato Corcoran
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Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
@Marcus Auerbach @Brett Kash Thanks guys! Question -- how do you feel about the West Allis market? Do you think it's up and coming/worth looking into, or is my money better spent elsewhere? i'm already scoping out my next purchase.
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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
@Tato Corcoran - let me take a step back first: I crinch a little when I read "up and comming" - if there would have been an area up and comming in Milwaukee every year I have been doing this, we would have gone through all zip codes by now and would have prices more like CA.
So almost fortunatley that is not the case, I have not seen any area completley change in character, most have gotten better over the years - but I have not seen the complete rags to riches turn around everyone wants to be a part of in the last ten years. The flip side of "up and comming" also means higher volatility and higher uncertainty.
That said, I am a fan of West Allis. It has good predictability. It has always been steady and stable, never been trendy or hyped up nor has it crashed, always a solid neighborhood and low crime. Prices are still reasonable, rents are good, schools are literally average. Housing stock is typical for its working class roots, square footage on average a little less than the North Shore, but more than some inner city areas. In the last years we have seen a lot of small commercial developments, business owners seem to like West Allis, which is always a good sign. It is centrally located and the city is driving a whole host of good initiatives. When you look at appreciation data it has always been in the mid range. It is fully built out, so there is no new residential construction to speak of, which also means inventory is limited to existing housing stock and we are seeing the 200k barrier breaking more and more often, typically in the southern parts of West Allis.
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Tato Corcoran
OP
Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
@Marcus Auerbach this insight is invaluable. Thank you for sharing. I absolutely hear you RE my use of 'up and coming.' I had Bayview in my mind as I know that has 'blown up' in the recent past (I lost out on many offers there.) But you're right -- the predictability of the West Allis area is really attractive and a place I am considering investing in next.
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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
@Tato Corcoran
Bayview has done well, especially the area East of Kinickinick. I have done a few duplex deals down there and was curius and just looked up the data on MLS.
"In god we trust, all others bring data" said the sign in the big conference rooms when I was in corporate. Bayview is not a municipality so MLS does not track it, the closest is zip 53207 (which in all fairness stretches a bit south as well and is bigger than Bayview).
Frankly I did not expect what I found:
53207:
2015 Median Sales Price $137,500
2019 Median Sales Price $179,900
change: +30.8%
in comparison same data for Milwaukee County:
2015 Median Sales Price $140,750
2019 Median Sales Price $189,900
change: +34.9%
Granted, this is the entire zip code of 53207, I am sure Bayview did better and certainly is one of the few posterchilds we have. But also: the tide lifts all boats and there are many areas in Milwaukee that did very well (better than the 34.9% average) - and usually they were quality neighborhoods before - so not really rags to riches.
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Tato Corcoran
OP
Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
Fascinating!!!! @Marcus Auerbach I don’t have a RE license. Do you think I can still be successful in building an investment portfolio here without that edge? I worked with an agent on this deal whom I adored and so will continue to use her. But my lack of license is always in the back of my mind.
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Tato Corcoran
OP
Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
Another question @Marcus Auerbach — approximately what average rent does a run-of-the-mill duplex in West Allis get? (I realize it’s Likely a broad range — just trying to get a vague guess for potential cash flow if I were to grab a few duplexes in the area.)
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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
7y
Originally posted by @Tato Corcoran:
Another question @Marcus Auerbach — approximately what average rent does a run-of-the-mill duplex in West Allis get? (I realize it’s Likely a broad range — just trying to get a vague guess for potential cash flow if I were to grab a few duplexes in the area.)

If run of the mill means somewhat dated condition, I would say about 80 to 90 cents per sf. Completly updated you can probably get a way with a dollar or a little more. Garage parking and a nice backyard is desireable and may get you an extra $50.
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Jim Jaworowicz
Milwaukee, WI · Member since 2018 · 31 posts · 18 votes
7y
Tato, Duplexes in West Allis east of 84th Street rent on average from $650 - $850. Rent of course depends on size, condition, location, etc. hile I don't own any properties yet in WA, I am looking to expand into that market. Rental rates are per MLS. While not a broker, I am a residential R/E appraiser. Hope that helps.
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Tato Corcoran
OP
Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
Thanks @Jim Jaworowicz! Where do you own now?
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Jim Jaworowicz
Milwaukee, WI · Member since 2018 · 31 posts · 18 votes
7y
NW side of MKE. All within 3/4 of 76th and Capital Drive area.
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Tato Corcoran
OP
Investor · Milwaukee, WI · Member since 2019 · 68 posts · 12 votes
7y
@Jim Jaworowicz are they SFH rentals? How is the cash-flow?
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