I am a new investor looking for cashflow rental properties, and from my preliminary search Milwaukee looks like a great option.
I am from Southern California, so I am aware that you will need a local PM for this area, and thats fine.
However, one issue is I dont know the good areas of town. What would you consider the a/b areas where you will get professional type renters?
I would say upper east side, east side, downtown, third ward, bay view, far south side. The taxes will be relatively high in these areas and will affect overall cash flow. If you have specific areas or properties you are looking at, let me know and I can give you a better idea.
Thanks, super helpful!
Thinking something like this:
Do those types typically work well? (obviously ill do due diligence...)
@Matt Costello Hey! Welcome to BP! Milwaukee can certainly be great for cash flow, but it seems to me when people are talking about 2 1/2 or 3% rules they mean C areas. The nicer areas still make good investments, but perhaps more of a long term play. Depends on your investment strategy. Where you are looking there, near the campus, rents tend to be some of the highest in the city (except, perhaps, for lofts downtown and such) because it's almost entirely student housing. I'd call it B to B+ because you are dealing with students, often young ones so close to campus, who can put some real wear and tear on your property. Previous poster's analysis of areas seem pretty on point. Bay View I guess I'd call B+ to A, lots of young adults with careers and family, and currently a very desirable place to live. Downtown is A, with lots of professionals, but the property values to go with it.
PM me if you would like to get on the phone some time, I'm an realtor and trying to work with more investors in the area.
Best of luck,
Milwaukee is a very "unique" city even from block to block. Just look to recent controversial comments by the Milwaukee Bucks president just this past week for further evidence...
Take these guys like @Joshua Martin up on an offer to speak to a local, you will need the mentoring.
Best of luck
@Matt Costello the area on Oakland is close to UW-Milwaukee therefore you are looking at typically renting to college students. It's a pretty safe location for rental income, lower crime and a fair amount of appreciation, however you are probably going to pay a fair amount in property taxes, purchase price, etc. If you have any other questions, feel free to ask.
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Thanks guys super helpful - ill reach out for some local advice as i get closer to moving on these.
Taxes are shockingly high here though, >2% it seems, what gives with that?
Matt, All good suggestions put out there by the guys above. Milwaukee market can be very tricky. You have some areas that look solid in terms of the houses but the neighborhood can still be sketchy.
Feel free to reach out anytime.
in my opinion the East side (both lower & upper), downtown, third ward are nearing the top of what they can be, Bay view, and the south side still have room to grow (having both good rental rate growth & appreciation) . The newer up and coming areas the 5th ward (between the 3rd ward and Bay view ) that area still has some crime issues, and St Francis (south of Bay view)
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