Adding HVAC in BRRRR process for Milwaukee market

1 Reply | Milwaukee, Wisconsin

For the Milwaukee market is it wise to add a HVAC system for a property to increase the value of the home.  The consistently cool temperatures seems to me It would be used as much, however just wanted to get some insight? 

Depends on the price point of the property and the rent bracket you are in. I would say under $800/mo you see a lot of rentals without AC. Between $800 and $1200 it's a mixed bag. Over $1200 is pretty much standard.

Here is another way of thinking about it. In general the quality of the property will very much determine the quality of tenant you will have. I can see a clear difference within my own portfolio between what I would call a 3 star property and a 5 star property - they are all in the same neighborhood and very similar in price - the main difference is the level of the interior finishes. The 3 star properties have 3 star tenants and they come with 3 star issues.