Neighborhoods for small multi cashflow
Hey Milwaukee,
I am an out-of-state investor looking to get started in the Milwaukee metro area with small multifamilies. I think it is a really strong metro area, happy to share my analysis of the city if you want to share your email. I have connected with an agent and we identified one neighborhood in particular, but I'm interested to hear from the group as to what your experiences are with cash flowing small multis in the city, and what neighborhoods might make sense for this. I'm looking for a lower-crime class "B" or "C" area. Thanks in advance!
Danny
Most Popular Reply
You can easily determine neighborhoods by the tyical price point and for you as an OOS investor it does not matter so much whoch side of town you are on.
People tend to have rose colored glasses when it comes to neighborhoods. Class A is generally downtown and new construction, which makes the North Shore with its large 1920s duplexes class B - at about 350k and up. Class C would then be anything below that, from West Allis to Wauwatosa, about 200k and up. That leaves you with under 200k for a class D duplex and the high crime areas will be D minus.
Personally we invest in the suburbs with nicer school districts, but that comes at a price of course. The city of Milwaukee has some nice parts as well, like Washington Heights or Bayview, but expect higher prices and in turn also higher rents.
Milwaukee has been appreciating well over the last years and is currently going up about 1% per month.