I've been watching and listening to Bigger Pockets YouTube videos for a while and am interested in the Milwaukee area. I'm visiting my cousin in the area for a few days and was wondering if I could meet up with a member in the area this Monday. I've bought Dawn's book on the city and am looking to buy in a C- to B neighborhood but beyond looking at listings I have no real estate agent, property manager, or other team members lined up. Does anyone know a good place to start? An example of some listings that I think look good are...
110 E Clarence St
748 S 21st St
Rents for $900
1126 Layton Blvd Unit A
1819 W Burnham St
2022 S 16th St
2059 W Vilter Ln
Hi Patrick, what are your goals and what is your price range? Are you looking to buy turnkey or do more of a BRRR method? For what its worth here is my quick opinion of the areas. I'm curious to see what others recommend.
110 E Clarence St - Bayview definitely B to A. I think this is an auction property or something. Ive definitely seen that address before. Lots of competition in this area, a good high cashflowing deal will be very hard to find.
748 S 21st St - clarke square neighborhood. Definitely rougher and id probably classify this as closer to a D than B area, but some people are heavy on it because of west milwaukee and the 5th ward/walkers point to the east.
Rents for $900 - Which one?
1126 Layton Blvd Unit A - Same as above
1819 W Burnham St - True south side milwaukee. Ive been seeing a lot in this area from 6th to 20th between Lapham and lincoln. Again, Id rate it more as a D type area with 20k properties
2022 S 16th St see above
2059 W Vilter Ln see above
The cash flow might look good on these, just make sure you are running repairs, maintenance, and capex expenses by actual replacement cost and not an 8-12% of monthly rent. The people that do well on these buy extremely low (like 10k) and fix up themselves and self manage. Feel free to PM to talk more.
Very helpful comments Adam, thanks so much for the feedback! I think we are looking for more of a turnkey property. Your comments match what Dawn said in her book, aside from the Bay View property the rest were classified in C- to B (at best) neighborhoods based on zipcode. I'm going to check out the C- ones more while I'm here (the Ds are probably not good for us since we are new to real estate). Again thanks for your expertise on the area and I'll stay active on the forums in case others have similar questions.
Good conversation here between both of you. I just purchased my first duplex in Bayview on 238 E Montana Street. I've got capital on the sideline and ideally want to purchase when the waters get rough; depending on how the 2020 election winds up. I've made most of my money on equities, stocks and a strategic options plays. I like the Bay View neighborhood for buy and hold.
Clarence is spoken for ;)
Thanks again for the feedback Adam. As an update I checked out a handful of properties on my list of properties copied and pasted above, with a few extras. The D neighborhoods were definitely that, and in the end there were 2 prospects.
1126 Layton Blvd - This house seemed to need some work but the surrounding houses and neighborhood seemed nice. It's on a major road and close to a church. I saw people outside and friendly, seems to be a predominantly Hispanic neighborhood. I think this could be on the list still.
110 E Clarence St - This was the Bayview foreclosure that honestly is the worst house in a GREAT neighborhood. My cousin lives in Bayview so I got to see a lot of it and I like it a lot (has a sort of Brooklyn vibe to it). I'm not sure what the interior looks like but I'm assuming that's the reason it's affordable.
So that's my update, I'm still on the lookout and I'm going to try to speak to some people on the forums. I'm still forming my "team" of real estate agent, CPA, property manager, etc. so these are still early days. Thanks everyone!
Doolan I'm in a similar boat as far as waiting goes, I'm in no rush. I think I will purchase prior to the election because I need to start learning more about being an owner, also interest rates are bound to be cut some more so waiting isn't the worst right now. My biggest issue seems to be finding deals. I don't know what is good and what isn't, or how fast people seem to jump on things. I'll keep working on strategy and will try to keep active in the forums.
Oh I just realize I didn't answer Adam on goals/price range. My goal is to buy 1-2 rental properties this year, with the expectation of low cost, cash flowing single family homes (or duplex-triplex if the math makes sense). I'm looking for long-term rental income and not property appreciation. Price range is a tougher question, but I've got at least $50k or so to use.