Wauwatosa (East Town) Rent Prices Update
Hey Tosa investors,
Thought I would provide an update on rents for this area to keep everyone informed. East Towne continues to have demand for quality tenants (lawyers, nurses, etc). Many of the duplexes on the market (for sale) seem to have low rents posted ($800-$900ish). I'm guessing this is because owners have had the property for a long time and are not raising rents, or they are simply not educated in investing. At the same time, newly built apartments are being built in Tosa. These rents are extremely high compared to the $800-$900/m. 2 bedroom apartments around $1,500-$1,700/m.
I currently have a duplex in East Town near North Ave. Highly renovated lower unit with 2.5 car garage and an updated upper unit. I recently moved out of the lower and listed it around end of February. After about 3-4 weeks we have a signed lease for $1,395/m. I originally had it listed for $1,450/m. Once again, high quality tenants. These new tenants actually moved from one of the apartment complexes.
For the upper unit, rent is currently at $1,150/m. This was a lease from middle of winter last year. However, I know that I can get $1,250-$1,275/m for this unit. I know another investor in the neighborhood with a comparable unit (updated/no garage parking but off street). He rented his last summer for $1,250/m very quickly.
North Ave continues to develop with bars/restaurants and Tosa school district is strong. There is demand and land is scarce. The only solution for housing is to build apartment complexes which are still roughly $100/m more than my unit. Duplex listings range wildly from $240kish-$300k. I have seen some lower though too. However, these are older builds and require some updating. Acquiring more in the $250k range is possible with new HVAC and water heaters. Galvanized plumbing is often the norm, so that needs updated. It's a slightly more expensive area than most invest in, however the demand, area, tenant quality, and rents are good. I think if you had a partner 50/50 you could get some good things going here.