Duplexes in Milwaukee

Wisconsin Real Estate Q&A Discussion Forum
9yFollow

Duplexes in Milwaukee

Daniel M.
Real Estate Investor 路 Houston, TX 路 Member since 2015 路 33 posts 路 17 votes

Lured by BP podcasts and the writings of various BP members who shall remain nameless I have made the trip to Milwaukee in search of real estate - I have found one duplex near W. Vliet and N. 38th St. - I am set to close on 6/30 and intend to make the purchase - the asking price is around $25k and the current rent is $600/unit - this is a small pocket of mainly multifamily properties located close to but away from "war zones" to the north and east, as far as I can tell. I would strongly suggest to anyone looking at Milwaukee to come to the city and drive the streets - it is pretty clear where the bad areas are. Zip codes are not enough. The area where I intend to purchase has been called a C+ area and maybe a bit better - I'm not sure. The key to this deal and why I may end up regretting it is that it needs work and one of the tenants seems to be a great handyman type who enjoys the work [free rent]. If I can count on him to pull off the repairs, this should be a good deal. If not, I may be stuck. This area is completely different from where I am living currently and I would say extreme caution is needed - probably more caution than I am using. Good to luck to all. Feedback or questions about this deal, Milwaukee, duplexes in Milwaukee, more than welcome - would love to hear about potential duplex deals or SFR deals in Milwaukee or maybe other Wisconsin cities like Madison, Green Bay. Also will be looking again in KCMO when the dust settles on this one.

4Reply
179 views

Most Popular Reply

Shawn AckermanPro Member
Real Estate Entrepreneur 路 Mid West, East Coast 路 Member since 2015 路 3k+ posts 路 1k+ votes
9y

@Daniel M. Thanks man!  Now if you can make a recording of that so that I can replay for my wife I'd be a happy man馃槀馃槀.  thanks for the kind words. I'm always here for you if you get into a jam. 

5Reply
See this reply in the discussion

45 Replies

Jump to latestLatest
  • Caleb Heimsoth
    Rental Property Investor 路 Durham, NC 路 Member since 2016 路 7k+ posts 路 7k+ votes
    9y
    I live in the Milwaukee area If you need any help. I know madison real estate is booming right now
    0Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur 路 Mid West, East Coast 路 Member since 2015 路 3k+ posts 路 1k+ votes
    9y

    @Daniel M. glad you made the trip to MKE and the best to you on your new deal. Please get set up woth a good PM who will take care of the property for you.   Let me know if at some point you take the drive over to Townsend. All the best. 

    2Reply
  • Daniel M.
    OP
    Real Estate Investor 路 Houston, TX 路 Member since 2015 路 33 posts 路 17 votes
    9y

    @Shawn Ackerman  thank you Shawn, you're a good person and a valuable resource

    2Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur 路 Mid West, East Coast 路 Member since 2015 路 3k+ posts 路 1k+ votes
    9y

    @Daniel M. Thanks man!  Now if you can make a recording of that so that I can replay for my wife I'd be a happy man馃槀馃槀.  thanks for the kind words. I'm always here for you if you get into a jam. 

    5Reply
  • Jason BottPro Member
    Insurance Agent 路 Nationwide 路 Member since 2014 路 2k+ posts 路 1k+ votes
    9y

    @Daniel M. so funny how small the BP world is.  I live in Wauwatosa, work downtown and take Vliet to and from work.  To add to this, I made another connection today with an investor in Houston TX where I am working on insurance options for his portfolio.

    Besides the coincidental story, I wanted to second your grading of c+.  With the expressway and park to the West, Harley Davidson to the South, it seems to keep it from getting too ugly.

    0Reply
  • Peter K.
    Lender 路 Milwaukee, WI 路 Member since 2014 路 119 posts 路 62 votes
    9y

    Good luck with your purchase!  I don't let my tenants work on my properties--when I got into this business I learned the two most important rules of being a landlord:

    1. The landlord is in charge.

    2. The tenant is not in charge.

    Having a tenant work on your property can make maintaining this order difficult.  It has worked well for some people, but to me, it's not worth it.  Particularly if you are out of state.  Make sure you have someone lined up to go and inspect the work being done since you can't do it yourself.  Make sure it is done on time and with the qualify of work you expect.  Document payment (or rent break?) meticulously.  

    2Reply
  • Ham Merritt
    Co-Owner 路 New Berlin, WI 路 Member since 2017 路 224 posts 路 71 votes
    9y

    @Daniel M. @Michael Henry AKA, "Mr. Duplex" is a good resource here locally for duplex deals. I would recommend you connect with him if you have not already.

    2Reply
  • Bob E.
    Queen Creek, AZ 路 Member since 2014 路 2k+ posts 路 1k+ votes
    9y

    @Daniel M.  Did you close on the property?  Post some pictures when you get a chance.

    @Jason Bott  PM me when you get a chance.  We are in Milwaukee this weekend looking at houses and expect to have several under contract in the next few days.   We will need an insurance agent.

    0Reply
  • Daniel M.
    OP
    Real Estate Investor 路 Houston, TX 路 Member since 2015 路 33 posts 路 17 votes
    9y

    @Bob E. I did close on the property and will email you photos of the property this week - hope you had a productive trip over there 

    0Reply
  • Bob E.
    Queen Creek, AZ 路 Member since 2014 路 2k+ posts 路 1k+ votes
    9y

    HI Dan,  Looking at properties today.

    0Reply
  • Chris Bruni
    Rental Property Investor 路 Poynette, WI 路 Member since 2017 路 37 posts 路 41 votes
    9y

    I grew up in Wauwatosa and, while I do not have any properties in the Milwaukee area today, both of my sons are just getting into investing there (purchased a duplex this spring), as well as working in property management.  For higher end tenants and quality properties look into the Riverwest area and points east.

    0Reply
  • Kyle Garro
    Watertown, WI 路 Member since 2016 路 17 posts 路 4 votes
    9y

    Who did you use for inspecting the property before finalizing the purchase? We are currently also looking for multifamilies in Milwaukee and have one in our cross hairs but unsure of good inspectors for multifamilies in this area. Hope your investment works out, I lived in town for 8 years and you are right in saying you need to drive the streets, they are very clear delineations between good and "bad" areas that would be tough investments. It is a very segregated city that can have affluent populations living only blocks from what most would consider very challenged areas. 

    0Reply
  • Ham Merritt
    Co-Owner 路 New Berlin, WI 路 Member since 2017 路 224 posts 路 71 votes
    9y

    @Kyle Garro where are you looking to invest specifically and what strategy are you after?

    0Reply
  • Jeff Shelton
    Investor 路 Chula Vista, CA 路 Member since 2017 路 38 posts 路 1 vote
    9y
    I'm currently looking at a property on W Montana St in Milwaukee, not sure if this is a C or D area, anybody know this area ?
    0Reply
  • Ryan Pattee
    Muskego, WI 路 Member since 2016 路 4 posts 路 0 votes
    8y
    How did this deal turn it for you? I just purchased a property down the road from you at 4716 W Vliet. Welcome to the neighborhood. Washington Heights is one if not the favorite place for me to invest right now. You are just east of there, I feel like the strip from 35 to the park is about to really see a big push. Great housing stock there and tons of nice Brick mixed use available.
    0Reply
  • Daniel M.
    OP
    Real Estate Investor 路 Houston, TX 路 Member since 2015 路 33 posts 路 17 votes
    8y

    Thank you @Ryan Pattee, I am very curious to see what will happen with this area.  There's a big difference right now as you know between where you're at and where I'm at.  I've had a lot of issues with the property, which was not maintained very well - new outlets, storm windows, replacement windows, leaky pipes, bad electrical switches, replacement flooring, roof issues, garage issues, insect issues, tree issues - learning a lot, spending a lot.  Hope the area justifies the investment!  Regards.  dm

    0Reply
  • Ryan Pattee
    Muskego, WI 路 Member since 2016 路 4 posts 路 0 votes
    8y
    For $25000 you did alright as long as your rehab costs haven鈥檛 skyrocketed. That area is about 5-7 years away from being super cool. Harley and Miller scopes are right there, and the Near West Side partners are investing a ton of time and money over there. Hang onto it.
    0Reply
  • Derek Mizysak
    Milwaukee, WI 路 Member since 2017 路 22 posts 路 0 votes
    8y
    As someone who grew up on Vliet I can attest it can be a tough area especially east of Washington Park. I personally only am willing to look at property south of the Menominee valley. Just my preference. Different tenants, tend to do less property damage.
    0Reply
  • Daniel M.
    OP
    Real Estate Investor 路 Houston, TX 路 Member since 2015 路 33 posts 路 17 votes
    8y

    I thought I would update this situation.  The upstairs tenant broke his lease in August '17 and abandoned the property, doing more damage on the way out.  He left a lot of junk behind which I had removed for $500.  The place was infested with bugs, which I treated for several months.  It is now bug free.  The downstairs tenant billed me for work that was never done, so I had to get another contractor.  I found a great contractor but he is not cheap by any means.  This property is over 100 years old and needs lots of work.  I've been working on the upper unit for awhile as funds permit and am close to being done.  The contractor wants to fix everything and so far that's what has happened - again these old houses need tons of work and finding the right person or crew to do the work is absolutely critical.  I've work doe on the roof - patching and removing scuttle hatch.  Work in the attic - took down 4 paster/lathe walls installed improperly in the attic, installed new windows, and removed massive amounts of old insulation.  Rented a dumpster and put 2.7 tons of materials in it.  Have redone the bathroom/kitchen and replaced/repaired/installed new outlets in the upper unit.  Converted gas dryer to electric.  Painted the entire unit.  Took down kitchen ceiling and one wall and replaced.  Replaced kitchen flooring and pantry flooring including sub flooring.  Cleaned out cold air returns and installed new dry wall.  Will install new kitchen cabinets today and gas oven.  This process takes a lot of time, energy, work, and money.  Do not buy a 100 year old house in Milwaukee and expect it to be maintenance free.  Have a very good idea what needs to be fixed and how much it will cost to fix it and who will do the work before you buy.  There will definitely be significant costs involved depending on what you want the property to be like when you're done.  Good luck!  

    3Reply
  • Account Closed
    Contractor 路 Los Angeles, CA 路 Member since 2015 路 887 posts 路 323 votes
    8y

    @Daniel M.

    Has this property ever made you a profit?

    0Reply
  • Mike Lowery
    Rental Property Investor 路 Milwaukee, WI 路 Member since 2013 路 180 posts 路 104 votes
    8y
    Daniel M. after putting about $16K into a duplex that isn鈥檛 as old as yours, I learned one important thing: Stick to SFH. Since then I have purchased three in Milwaukee and the maintenance is much easier to handle and the cash flow is actually a bit better. I always through the duplex route would be the way to go, but even tenanted seem to be more of a problem with tenant relationships, etc. Good luck with the rest of your rehab and if you need any help out here, let me know. I spent 15 months in Houston, residing in the Willowbrook neighborhood.
    0Reply
  • Daniel M.
    OP
    Real Estate Investor 路 Houston, TX 路 Member since 2015 路 33 posts 路 17 votes
    8y

    @Mike Lowery  Thank you very much!!

    @Account Closed  I still own the duplex so no profit yet ... I am collecting rent from the downstairs tenant and look forward to collecting rent from the upstairs tenant soon hopefully ...

    0Reply
  • Account Closed
    Contractor 路 Los Angeles, CA 路 Member since 2015 路 887 posts 路 323 votes
    8y

    @Daniel M.

    So you鈥檝e gone 9 months without making any money on this property?

    So is the other tenant covering your mortgage for now?

    How are you covering all your expenses for this proper if it鈥檚 not making money?

    Sorry for all the questions. Just trying to learn and understand how someone in your position has not lost or sold the property. 

    Thanks. 

    0Reply
  • Bob E.
    Queen Creek, AZ 路 Member since 2014 路 2k+ posts 路 1k+ votes
    8y

    @Daniel M.Who is your property manager.

    0Reply
  • Daniel M.
    OP
    Real Estate Investor 路 Houston, TX 路 Member since 2015 路 33 posts 路 17 votes
    8y

    @Account Closed  This is a duplex so the downstairs tenant is paying rent.  The downstairs is in much better condition so hoping not much rehab work, if any, is required down there.  This was a cash purchase, no mortgage, so I don't have a 

    bank to deal with.  If I had a mortgage, things would be worse I'm sure.  I've been rehabbing the upper unit and keeping track of my costs to the dollar.  I'm adding those costs to my basis, which is about double now what I paid for the property.  After basic expenses like water/property tax, the property is currently yielding around 10% annually on the adjusted basis.  I don't know what the yield will be when there's another tenant upstairs paying rent.  I am just trying to get the upstairs finished.  One lesson I take away from this is to have kind of an open house for contractors - let them all come in and give bids for the entire job and then work with the best ones.  This is hard to do if you're out of state like me but it would be worth it.  Find a contractor capable of doing everything and get an accurate bid for everything so you know what you're going to pay, at least roughly.  Do that on day 1.  Do that before you buy the property if you can somehow.  Thanks for your questions and good luck.  

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free