New Investor in the Milwaukee Area

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New Investor in the Milwaukee Area

David Mo
Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes

Hello Milwaukee BP community! 

I'm a recent college graduate who graduated from UWM in 2019 with a degree in computer science. I currently work at FIS as a software developer where we create solutions for our clients in the fintech industry. While I am currently enjoying my time at FIS and what I do, I don't wish to work for someone forever. I've set a goal for myself to retire from my job at 35 through RE. 

My short term goal is to house hack my first property by the end of 2020 and at least be able to cash flow once I move out. I would also like to figure out a system to use for future purchases. Finally, I would like to spend this year learning about the nuances of the Milwaukee market as I'm not familiar with the area. 

I think that the buy and hold strategy fits my personality the best, but I'm also curious about fix and flips, wholesale, and real estate businesses in general. 

Unfortunately we're currently in the midst of an unprecedented pandemic, but I see this as a great opportunity to come out stronger. Once it's safe to go out, I would love to meet people for coffee (or tea if you swing that way.) 

Here's to a bright and successful future and I hope that we can all grow together. Thanks for reading! 

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Marcia Kreifels
Member since 2019 · 8 posts · 5 votes
6y

Hi! I just bought my first house hack this February in Tosa, and will be renting it out soon! I feel like Milwaukee is a good place to house hack because there’s a lot of multi families around. Seems like everyone’s doing it! 

Two suggestions. First if
you're planning to buy in the city of Milwaukee and you are running your numbers plan a little extra for property taxes. What you’d be seeing on Zillow for taxes will probably be low because it’s based on the previous year.


Second Milwaukee city hall offers a free landlord class, and I’ve heard it’s really good! I’ve never gone, and I’m not sure if I count anymore since I moved outside the city limit when I bought my place. But it might be worth checking out!

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  • Justin Schaefer
    Real Estate Investor · Mukwonago, WI · Member since 2017 · 76 posts · 16 votes
    6y

    Welcome David!  I too am a newbie in the Mukwonago/Waukesha area.  I'm almost ready to move forward with my first acquisition and have a short term goal to be house hacking by the end of this year.  Best of luck to you, and perhaps we can network in the near future.  It's wonderful that you have such clear goals, and it will also be interesting to see who else responds to your post.  I'll keep an eye on it too.  Take care!

    0Reply
  • David Mo
    OP
    Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes
    6y

    @Justin Schaefer It’s cool that we have similar goals! Best of luck to you and let’s chat soon!

    1Reply
  • Brock Mogensen
    Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
    6y

    Welcome! I also invest in the Milwaukee market.  I think you have the right path in place.  Dig deep into the education process in the coming months and build up your connections in the market.  There should be some good opportunities coming this fall..but who knows.  House hacking is a great way to get started!  That is exactly what I did.  It teaches you the basics of a deal and allows you to scale from there.

    1Reply
  • Marcia Kreifels
    Member since 2019 · 8 posts · 5 votes
    6y

    Hi! I just bought my first house hack this February in Tosa, and will be renting it out soon! I feel like Milwaukee is a good place to house hack because there’s a lot of multi families around. Seems like everyone’s doing it! 

    Two suggestions. First if
    you're planning to buy in the city of Milwaukee and you are running your numbers plan a little extra for property taxes. What you’d be seeing on Zillow for taxes will probably be low because it’s based on the previous year.


    Second Milwaukee city hall offers a free landlord class, and I’ve heard it’s really good! I’ve never gone, and I’m not sure if I count anymore since I moved outside the city limit when I bought my place. But it might be worth checking out!

    4Reply
  • Kevin M Finley
    Developer · Kenosha, WI · Member since 2017 · 141 posts · 91 votes
    6y

    Welcome! House hacking is definitely a great way to get started. 

    2Reply
  • David Mo
    OP
    Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes
    6y

    Congratulations @Marcia Kreifels - that's awesome! I've recently learned that Milwaukee has high property taxes so I'll keep that in mind. I've also been looking at some city sponsored online landlord classes and there's definitely some good info to grab. 

    1Reply
  • David Mo
    OP
    Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes
    6y

    Thanks @Brock Mogensen! I look forward to reading more from you. 

    0Reply
  • David Mo
    OP
    Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes
    6y

    @Kevin M Finley I think so too! 

    0Reply
  • Caleb Green
    Member since 2019 · 2 posts · 0 votes
    6y

    @David Mo. I have basically the same plan, but am currently in analysis paralysis. To or not to wait for the fall. Supply may increase due to the pandemic dooming the overleveraged and AirBnBs, but financing could also dry up and interest rates could bump up as well.

    Also where to house hack? My spreadsheets say west allis, but my heart says bayview/upper east side. Do you take advantage of the FHA low money down to get a nicer, pricier duplex in a good area and have more reserves in the bank? Or go 20% down on a cheaper place in a worse area, but enjoy the better cashflow?

    0Reply
  • David Mo
    OP
    Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes
    6y

    @Kevin M Finley I think so too! 

    0Reply
  • Matthew Meunier
    Real Estate Agent · Milwaukee, WI · Member since 2018 · 50 posts · 45 votes
    6y

    Welcome @David Mo - interesting time as any to get started in real estate! You've done the important part of identifying the strategies you want to move forward with, and ones you're curious about. In the end, you'll probably try multiple and stick to the ones you like most. I invest in Milwaukee and surrounding areas as well, mainly in MFH, and have completed two house hacks. If you ever want to chat, I'd be happy to share my insights. Best of luck, and hope all is well!

    1Reply
  • David Mo
    OP
    Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes
    6y

    @Caleb Green I have the same questions and fears as you, but I'm managing that fear. I personally aim to buy and hold. As long as I'm paying less rent than I am now and cash flowing when I move out I don't care if I won't see appreciation this year or the next. I personally like having extra cash in hand for other opportunities. The type of loan you choose depends on your financial situation. I recently talked with a local bank that offers an ARM loan with 5% down and no PMI. If you're interested I can give you more information. Also if you don't have an agent yet, consider finding one that invests in real estate. I reached out to @Marcus Auerbach and he's been really helpful so far. Working with an agent who has your back and has your best interests in mind will give you ease of mind! 

    0Reply
  • David Mo
    OP
    Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes
    6y

    Thank you @Matthew Meunier! I plan to try a little of everything and see what I like the most. 

    0Reply
  • Gregory Chadwell
    Real Estate Broker · Milwaukee, WI · Member since 2015 · 299 posts · 90 votes
    6y

    Welcome to the world of property investing.  Ill 2nd recommending the landlord training for the first time landlord I went through it 10 years ago.  Using a Realtor who is also a landlord will give you extra insights as to extra things to look for and what to look out for.   Mailbox money is always better than doing the grind to make your money .   

    1Reply
  • Caleb Green
    Member since 2019 · 2 posts · 0 votes
    6y

    @David Mo. That 'no PMI' prospect if very enticing, but I fear the adjustable rate. And I'm good on the agent for now. A work colleague who invests gave me a referral to the guy he uses. I'm about to start throwing low ball offers around once my pre-approval goes through. Though I don't expect to get anything until **** starts hitting fans. I just need to listen to the spreadsheets and not the beautiful stonework of the more expensive parts of town

    0Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    6y

    @David Mo Welcome!!!

    0Reply
  • David Mo
    OP
    Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes
    6y

    @Shawn Ackerman Thanks Shawn! 

    0Reply
  • Nhia Yang
    Member since 2019 · 1 post · 0 votes
    6y

    Welcome. House hacking is a great way to get into real estate investing. I am currently looking to do the same thing with a VA loan. Best of luck sir!!!!!

    0Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    6y

    @Caleb Green getting out of analysis paralysis can be daunting by yourself, but relativley easy with a little coaching to translate your goals into a strategy. West Allis is a sound choice for starters, you get a lot more value and consistency than in some of the more hyped up neighborhoods. However, you will never regret that you have stepped it up into a better neighborhood. Real estate is somehwhat counter intuitive, as it has an inverse price-risk ratio: many of your long term risks go down, as you increase the price range - there will be a personal sweet spot that is right for you. 

    What you will find is that anything worth buying is competitive and will typically go over asking. When I present multiple offers to my seller, FHA loans are often the first we put on the pile. Nobody wants to deal with the risk for lender stipulated repairs a week before closing. Choosing your lender is a major decision and impacts how your offer is perceived by a seller, so choose wisely!

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    6y

    @David Mo

    Welcome to the BP family! Good to have you here! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users
    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
    Check out BP Podcasts: https://www.biggerpockets.com/podcast

    Wishing you the best!

    1Reply
  • Janel Martens
    Investor · Milwaukee, WI · Member since 2017 · 5 posts · 5 votes
    6y

    Welome and I third the Milwaukee Real Estate class! Also we house hacked our first two properties and we are working on our third now. 🙂 Things will start to snowball if done right!

    0Reply
  • David Mo
    OP
    Lender · Milwaukee, WI · Member since 2020 · 109 posts · 115 votes
    6y

    @Janel Martens Glad to hear that you've been successful! What areas have you been focusing on? 

    0Reply
  • Janel Martens
    Investor · Milwaukee, WI · Member since 2017 · 5 posts · 5 votes
    6y
    Originally posted by @David Mo:

    @Janel Martens Glad to hear that you've been successful! What areas have you been focusing on? 


    We've been on the southwest side of Milwaukee in the Jackson Park area so far. Two of our places are in that area. Our new place we are closing on is Franklin/Hales Corners area.
    1Reply
  • Erik Reichertz
    Investor · Hartland, WI · Member since 2013 · 17 posts · 4 votes
    6y

    Welcome.  I would endorse the house hacking plan to get started as well. Just graduating from college, I think you are in a good place in life to take advantage of the opportunity.  

    0Reply
  • Mayson Madden
    New to Real Estate · Milwaukee, WI · Member since 2020 · 17 posts · 8 votes
    6y

    @David Mo I also graduated this past December and have plans to follow exactly what you said! The landlord class everyone is mentioning can be found by googling "Milwaukee Landlord class." It links you to a sign up on the right side of the screen. It is online only but is extremely easy to do. I signed up for it yesterday actually which will be June 9th while there is another later in June.

    I had been in analysis paralysis for nearly 6 months before I finally decided to pull the trigger. Keeping in mind that even if it doesn't go perfectly at first, it's a learning experience. With that being said, the market is extremely hot. Some of the properties on the MLS were gone within 5 days. Others had offers 20K higher than asking. With that being said, I have had an offer accepted recently and feel really good about the deal.

    I personally wanted a small fixer upper as a starter for experience sake. Being new to the investing world is exciting and also terrifying. I am happy to see others seeing down the road freedom and opportunities real estate offers.

    0Reply
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