Duplexes in Milwaukee

39 Replies

@Jorge Ruiz   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.  

@Bob E.   Right now I'm handling that - when the place is leased upstairs I plan to turn it over to the contractor, who lives in the area and is experienced at screening tenants, making repairs, collecting rents, etc.  He will be screening tenants and showing the property when the rehab is complete shortly.  Hope all's well.  

@Daniel M.

I’ll be in Milwaukee next week in hopes of seeking all that up so when I buy I can mitigate my risks as much as possible. 

Thank you for your willingness to share and for taking the time to do so. Very informative. Hope all goes well...

Jorge

@Daniel M. This is good stuff. I live in Madison Wisconsin and have considered Milwaukee to purchase duplex or 4 unit. I am totally scared of the war zones and driving it is good idea for sure. I'd be curious to see the pics of the property and the structure of the deal including estimate on rehab and future fixed value.  Thanks!

@Daniel M.

Thanks for the follow up. My trip in hindsight could have been planned out better but nonetheless I felt pretty satisfied about what I was able to accomplish. From what I was able to tell I think MKE is a great place to invest. I was most certainly in for a reality check when I went to see a few properties in the price range I thought I wanted to be in. So I am certainly glad that I went out there. @Matt Maurice  his crew at REIS (property management) are really dialed in to Milwaukee and what they are doing as a business. Met a lot of great folks through the Brew City Real Estate Investment Meetup. The network they have going on is really great. Great group to be a part of. I hope this answered your question.

@Daniel M.

You seem like a solid guy 

I would re read what Peter K said above 

Also you absolutely need to separate contractor from management , 

Write above sentence 100 times on a blackboard

Keep us updated 

Good luck 

@Rebecca Holmes 

The sentiment is mutual. Hope to make another trip in the summer with my wife. Brew City REI Group are some of the realest people I've met so far in REI.

 I would love to go when a group called Imagine Dragon plays at one of the festivals.

By the way I’m making a move on a duplex. Wish me luck!

Jorge 

@Jorge Ruiz   If you are here in Milwaukee this summer for Imagine Dragons (and investing...) let me know- I've got several general admission tickets to get into Summerfest.  Would be good to catch up again and see how your buys are progressing.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here