New investor – Milwaukee WI

21 Replies

Hello everyone,

I am a new investor living just outside of Denver Colorado, and we are looking for our first rental property in Milwaukee WI. If you are familiar with the Denver markets you know that the prices here are out of control which makes it very difficult to find cash flowing properties. Since finding this awesome site and watching YouTube videos and listening to Podcasts we have decided to invest out of state. I am just finishing up reading David Greene’s book “Buy, Rehab, Rent, Refinance, Repeat” and plan to buy his book on long distance investing next. After doing some research we are lending towards Milwaukee, because of property costs to rent ratio and the availability of duplexes. It also seems like that market is prime for an upturn.

Thank you in advance and I look forward to getting to know more of you from this site.

Originally posted by @Scott Pass :

Hello everyone,

I am a new investor living just outside of Denver Colorado, and we are looking for our first rental property in Milwaukee WI. If you are familiar with the Denver markets you know that the prices here are out of control which makes it very difficult to find cash flowing properties. Since finding this awesome site and watching YouTube videos and listening to Podcasts we have decided to invest out of state. I am just finishing up reading David Greene’s book “Buy, Rehab, Rent, Refinance, Repeat” and plan to buy his book on long distance investing next. After doing some research we are lending towards Milwaukee, because of property costs to rent ratio and the availability of duplexes. It also seems like that market is prime for an upturn.

Thank you in advance and I look forward to getting to know more of you from this site.

 Welcome to the site Scott.

@Scott Pass

Welcome to the site! Im in Milwaukee and would be happy to answer any questions you have about an area. A lot of Milwaukee property’s are old, and there are a lot of areas that can be headaches. But definitely have able to get some good cash flow compared to some other markets. Milwaukee def is becoming an attractive place though, and downtown has become an awesome place for entertainment.

I moved from Chicago, along with a lot of people I have met who have done the same. Lower cost of living and feels like a mini version of Chicago in a way.

@Anthony Vaiana

Hi Anthony,

Thank you!

Yeah I have been researching Zillow and Redfin and found a lot of duplex that look promising. The problems is it hard to determine which areas are nice or up and coming and which ones to stay away from. That's why I am hoping to find a good real estate agent and property manager to meet with next week when we are out there. Any advise on an area to start look at would be awesome. How many properties do you currently? How long have you been investing in the Milwaukee area?

I was born in the western suburbs of Chicago, but moved away when I was young. I still have a lot of relatives out there and it is a great city to visit.

 Thank you,

-Scott

Originally posted by @Scott Pass :

Hello everyone,

I am a new investor living just outside of Denver Colorado, and we are looking for our first rental property in Milwaukee WI. If you are familiar with the Denver markets you know that the prices here are out of control which makes it very difficult to find cash flowing properties. Since finding this awesome site and watching YouTube videos and listening to Podcasts we have decided to invest out of state. I am just finishing up reading David Greene’s book “Buy, Rehab, Rent, Refinance, Repeat” and plan to buy his book on long distance investing next. After doing some research we are lending towards Milwaukee, because of property costs to rent ratio and the availability of duplexes. It also seems like that market is prime for an upturn.

Thank you in advance and I look forward to getting to know more of you from this site.

Hi Scott, welcome to BP! I have heard about Denver prices over the last years and it definitley is a challanging market. But long distance investing does not come without challanges either, as you know. Not only have you lost the home field advantage, you also have to compete with local investors. Milwaukee is still priced a lot lower level, but make no mistake, it has been a competitive market over the last years. 

We are short on inventory and have been pushing up prices every year between 5 and 7%, which was unheard of in the past. Investors are competing with first time home buyers, who have an uncle who is a contractor and a brother who is an electrician - and they don't need to make a profit (they also underestimate the cost of a rehab) and will likely overpay.

I have been BRRRing properties now for almost ten years and very few of them worked out text book style. We typically end up spending more money, especially on things that need to be done but don't have much impact on the ARV, like driveway, siding, windows and roof. Buying a property, that has these items in good condition is a huge part of the equation and adds to your list of criteria.

In the long run I hope you are right about the Milwaukee market - we have limited housing stock and the city is almost fully built out between the lake and the expensive suburbs, so we have a finite supply of old houses that keep aging - the perfect environment for launching a remodelling business I guess. 

 

@Marcus Auerbach

Hi Marcus,

Thank you very much for the great information and insight into the market. I know it's not going to be easy to do our first brrr deal out of state, but we are committed to making it work and to do whatever it takes to make our new business successful.  

I see that you are also a real estate agent are you currently taking on new clients? If not maybe know of one that is and doesn't mind working with out of state buyers.

Thanks again,

Scott

@Scott Pass

Welcome to the BP family! Good to have you here! Here are some recommendations for you:

Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users
Set up keyword alerts to be notified of the topics that interest you:http://www.biggerpockets.com/alerts
Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
Check out BP Podcasts: https://www.biggerpockets.com/podcast

Wishing you the best!

Originally posted by @Scott Pass :

@Marcus Auerbach

Hi Marcus,

Thank you very much for the great information and insight into the market. I know it's not going to be easy to do our first brrr deal out of state, but we are committed to making it work and to do whatever it takes to make our new business successful.  

I see that you are also a real estate agent are you currently taking on new clients? If not maybe know of one that is and doesn't mind working with out of state buyers.

Thanks again,

Scott

Hi Scott, I work with a lot of investor Buyers and many of my clients are from the west coast and the nortn east. I also help seasoned local Milwaukee investors with portfolio analysis and strategy consulting: we look through the portfolio and I help them understand what parts to keep and which parts to trade in/up. And of course I am always looking for regular residential listings! Just send me a message and we can take it from there.

@Scott Pass

Welcome to BP Scott! And happy to hear you’ve narrowed a decision to the Milwaukee market! As others have said, we certainly have a lot of opportunity here, and due diligence up front in recognizing TRUE rehabs costs will be critical in your success. Not many new builds in the city itself but a few zip codes will provide a higher probability of success than others, mainly South to Southeast of the city with some opportunity in the Northwest if you find the right pockets. You’ll success in suburbs surrounding Milwaukee as well, mainly to the West, just need to act quickly as other investors are on the prowl too. We’ve seen a great influx in local and out of state investors making the market quite competitive in its small inventory.

I'm a real estate agent and wholesaler along with providing property management services through a corporate resource. We've seen firsthand the successes and failures OOS investors have made who have come to Ogden for management after a miscalculation on BRRRR'ing.

Reach out for help and I wish you all the best in your journey!

Also, Pine Financial is out of CO but they fund deals in WI..... brrrrs and rehabs.Talk to Travis Sperr. Marcus Auerbach is a great agent too!! 

Originally posted by @Scott Pass :

@Anthony Vaiana

Hi Anthony,

Thank you!

Yeah I have been researching Zillow and Redfin and found a lot of duplex that look promising. The problems is it hard to determine which areas are nice or up and coming and which ones to stay away from. That's why I am hoping to find a good real estate agent and property manager to meet with next week when we are out there. Any advise on an area to start look at would be awesome. How many properties do you currently? How long have you been investing in the Milwaukee area? 

I was born in the western suburbs of Chicago, but moved away when I was young. I still have a lot of relatives out there and it is a great city to visit.

 Thank you,

-Scott

Hey Scott,

Sorry for late reply. Finding a good agent and property manager will be key to investing from a distance. Luckily your in the right place to find some on BP! As far as where to look, depends on what you are looking for. Washington heights, particularly near north ave and Wauwatosa, has become quite pricey but is a hotter area. River West & Bay view are very popular areas but also pricey. For decent cash flow in C neighborhoods I like Capitol heights, St Josephs neighborhood, West Allis, Dineen Park, Arlington Gardens. I have a duplex in Nash Park and currently searching for a 4 family. 


 

 

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