Beginner looking to invest in the Milwaukee Wisconsin Area

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Beginner looking to invest in the Milwaukee Wisconsin Area

Ron Neal
Milwaukee · Member since 2020 · 6 posts · 4 votes

Hello there!

My name is Ron. I just bought my first duplex and it sparked my interesting in building a rental portfolio. I am just not sure how to break into the market and create those connections. Any tips or pointers?


The end goal, as with most real estate investors, is to build enough passive income to make it a full time job. 


Any tips or pointers help. 

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Rebecca KnoxBusiness Member
Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
6y

Buy more rentals and most investors do the BRRRR strategy here in Milwaukee however, things are a little more unpredictable on the lending side at the moment due to COVID 19 but people are still buying with the intent to BRRRR.

Captain Save-A-Home LLC
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  • Corina Eufinger
    Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 432 votes
    6y

    Hi @Ron Neal! Congratulations on your first purchase! A great group to join and network with is Brew City REI. If you can be active on there and attend some in person events you will make some amazing connections in that group You can find it on FB.

    0Reply
  • Brett Kash
    Flipper/Rehabber · Milwaukee, WI · Member since 2016 · 153 posts · 84 votes
    6y

    I'll second that Brew City REI is a great group to stay engaged with. You can find them on facebook just by searching. A lot of good opportunities to meet other people in the industry and hear about what they're doing. I would also say the Milwaukee REIA is a decent place to meet people and network as well. There is some cost to being a member but I have found it worthwhile in my experience. Good LucK!

    0Reply
  • Jacob K.
    Rental Property Investor · Milwaukee, WI · Member since 2018 · 11 posts · 9 votes
    6y

    @Ron Neal I also agree the Brew City REI is a fantastic way to get involved! I am a relatively new investor myself and cannot count the number of times this group has helped me. They host a number of networking events and meet ups that I'd highly recommend checking out.

    Depending where you are located, Smart Asset in Waukesha also hosts monthly meet ups. It’s a great place to have some pizza and meet with other local investors of different levels.

    Where did you buy your duplex?

    0Reply
  • Andrea Weule
    Investor · Member since 2020 · 324 posts · 278 votes
    6y

    I love Milwaukee!  Solid town, great cashflow and returns.  

    Welcome to the BP Family!  

    Best of Success!

    0Reply
  • Ron Neal
    OP
    Milwaukee · Member since 2020 · 6 posts · 4 votes
    6y

    You guys are freaking awesome! Thank you for the recommendations!! I will definitely check out Brew City REI! Hopefully, I will see some of you at the meet-ups!

    Having lived in Milwaukee my whole life, i think it is crazy that i haven't thought of getting into real estate earlier! What do you guys use to find deals? Is it more connections, MLS, Zillow, a combo? I am struggling to find homes for a decent price!

    1Reply
  • Jeff JohnsBusiness Member
    Real Estate Broker · Milwaukee, WI · Member since 2019 · 14 posts · 6 votes
    6y

    Hi Ron, another good group is the Milwaukee Real Estate Investors Association. They dive into more about how to find off market deals and flipping properties. Best of luck! 

    [email protected]262-442-2700
    0Reply
  • Rebecca KnoxBusiness Member
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    Hi Ron. Congratulations on your first investment purchase. What neighborhood is your duplex located in? Hope to see you at one of the Brew City REI events once the quarantine is lifted :)

    Captain Save-A-Home LLC
    WebsiteView Page
    0Reply
  • Ron Neal
    OP
    Milwaukee · Member since 2020 · 6 posts · 4 votes
    6y

    Hey Rebecca!

    My first property is more of a house hacking duplex! Did a bunch of Reno on it and hope to make it a full fledged rental in the very near future. It is located in the Rolling Green Neighborhood in Milwaukee.

    I will definitely be attending one of the events once these crazy times are over! 

    0Reply
  • Rebecca KnoxBusiness Member
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    That's a solid area. Nice job.  

    Captain Save-A-Home LLC
    WebsiteView Page
    1Reply
  • Ron Neal
    OP
    Milwaukee · Member since 2020 · 6 posts · 4 votes
    6y

    Okay, I have a question/ situation and would like some guidance.

    We sold our home in Saukville for a pretty nice profit! We had lived in it for 2 years, so all the money was not taxed. We put that money into a savings account to start investing with. 

    My question to you in if you had $40,000 dollars in a savings for investing, how would you go about investing it?

    0Reply
  • Rebecca KnoxBusiness Member
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    Buy more rentals and most investors do the BRRRR strategy here in Milwaukee however, things are a little more unpredictable on the lending side at the moment due to COVID 19 but people are still buying with the intent to BRRRR.

    Captain Save-A-Home LLC
    WebsiteView Page
    2Reply
  • Brock Mogensen
    Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    6y

    The best way to build connections in the local market is through networking events, in my opinion.  Right now, obviously, those are off the table but there are still some virtual events going on that can serve the same purpose.

    0Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    6y

    Hi Ron, house hacking and BRRR are the two best strategies when you start out - and they actually combine very well. Most people think about single family homes when it comes to BRRR, but Milwaukee has an excellent stock of duplexes and many are good candidates for a rehab.

    When you can owner occupy it, you can buy with relativley low money down - 5% is the sweet spot, because thats still conventional and some lenders offer no PMI, which is huge. The time you take to complete the process can work in your favor, because we have seen prices go up every year. Ideally you generate 20% equity over this time period, if you can pick up 5% from the market it helps a lot!

    Which leads me to the other question - finding good deals. Median sales price for single family homes went up 8% last year, so of course you have to adjust your expectations on what a good deal is. 2019 is over. However, real estate is still cheap compared to cities like Austin or Denver. In my opinion we have a good chance to grow in this direction as well - after a long hybernation since the 60s, Milwaukee is currently reinventing itself and has a lot of momentum. 

    At the moment everyone is concerned about CV, but there is no evidence in the data or in historical events that RE values may soften. I look at the data every day and while showings are down of course, we have not seen prices to soften. In fact I got beat out by multiple other offers last weekend, the market is still very competitive.

    The future is always uncertain of course, but I believe there is a good chance in ten years we will be looking back and say it was still cheap in 2020..

    1Reply
  • Ron Neal
    OP
    Milwaukee · Member since 2020 · 6 posts · 4 votes
    6y

    Marcus! 

    Firstly, Thank you soo much for your response! It was very very insightful.

    I wish i would have put 5% down on the current duplex I bought, however I took advantage of the FHA loan and its 3.5% down. Unfortunately, as a novice investor, I thought well hey if I can make enough in rent to cover the PMI why not invest that addition 1.5% into the duplex and fix it up. So that was the path I chose. Now looking back I wish I wouldn't have, it would have saved me an extra 150 bucks a month.

    This brings me to another question. What is the best way to refinance (I know the lenders are swamped at the moment). Do you have any recommendations on refinancing? What is the most cost effective way to refinance?

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    6y

    @Ron Neal

    Welcome to the BP family! Glad you joined the best real estate investing website! 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

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

    Wishing you the best!

    0Reply
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