Investing in Milwaukee as a new investor?

11 Replies | Milwaukee, Wisconsin

Hi all, I am an new investor and have been looking in the Milwaukee market to start my real estate portfolio. Does anyone have any information on how the market is? I am looking to buy and hold.

Any information would be great!

Thanks all.

depends what class and what you expect for returns. In the b-c market prices have really surged so finding a good deal may be hard. My last one took forever to find and I don't know if I'll see any more . You should have been here 3 years ago. Also be aware property taxes are very high compared to Ca.

Originally posted by @Kevin Auyong :

depends what class and what you expect for returns. In the b-c market prices have really surged so finding a good deal may be hard. My last one took forever to find and I don't know if I'll see any more . You should have been here 3 years ago. Also be aware property taxes are very high compared to Ca.

 Thanks for letting me know! I wasn't aware of the higher property tax.

Originally posted by @Rundell Ramsay :

@Yer Xiong  Network with people that live in the area 

 I definitely will need to do that.

I've also heard mixed reactions from some people saying the percentage of ROI had dropped significantly. Is this true?

Depends how you measure ROI - some people will use down payment vs gross cash flow, some people will use net, others will include mortgage pay down and appreciation..

Metro Milwaukee has been low on inventory for three years now, with strong demand, especially on entry level homes, pushing up prices. The Metro area as a whole appreciated 7.4%, although this varies greatly by zip code from nothing to double digit. Rents have gone up as well, but not at the same rate. It is likly a fair statement that ROI measured on down payment / cash flow has decresed.

@Marcus Auerbach Thank you for the info. I am looking at the returns after principle/interest and all expenses had been paid. 

I talked to a relative of mine that lives in Milwaukee and he mentioned the same thing about low inventory. 

Any other market in Wisconsin you guys would suggest? 

Originally posted by @Kevin Auyong :

depends what class and what you expect for returns. In the b-c market prices have really surged so finding a good deal may be hard. My last one took forever to find and I don't know if I'll see any more . You should have been here 3 years ago. Also be aware property taxes are very high compared to Ca.

 It would be better to have someone you know you can buy a house from.  :)

Originally posted by @Dawn Anastasi :
Originally posted by @Kevin Auyong:

depends what class and what you expect for returns. In the b-c market prices have really surged so finding a good deal may be hard. My last one took forever to find and I don't know if I'll see any more . You should have been here 3 years ago. Also be aware property taxes are very high compared to Ca.

 It would be better to have someone you know you can buy a house from.  :)

 Hmmm, I wonder if I know anyone?.....

The Milwaukee metro area continues to offer excellent opportunities, economically probably the best in Wisconsin. The state of the economy and supply vs demand is making investments more expensive; however I believe investing in markets that are still slow at this point or have ample supply is a risk - they will drop faster and have higher vacancy rates in the next slow down cycle.

Investors want motiveated sellers and buy cheap - but think about it, why would you want to be in the shoes of the guy who ownes something that is so undesirable that you have to discount it to find a buyer.   

Originally posted by @Marcus Auerbach :

The Milwaukee metro area continues to offer excellent opportunities, economically probably the best in Wisconsin. The state of the economy and supply vs demand is making investments more expensive; however I believe investing in markets that are still slow at this point or have ample supply is a risk - they will drop faster and have higher vacancy rates in the next slow down cycle.

Investors want motiveated sellers and buy cheap - but think about it, why would you want to be in the shoes of the guy who ownes something that is so undesirable that you have to discount it to find a buyer.   

 Good point.