Small multi-family (2-4 units) buy & hold investment in Bay View.
Purchase price: $229,200
Cash invested: $34,380
238 E Montana St, Milwaukee, WI is a multi family home that contains 1,610 sq ft and was built in 1925. It contains 4 bedrooms and 2 bathrooms.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Justin Ippoliti - Realtor
Congrats on the purchase! You think you’ll be able to cash flow that property at that purchase price I take it? Duplex’s seem to be getting tougher to make sense financially as a pure investment property IMO unless you’re putting a large down payment into it.
Absolutely, I'm currently living in the lower unit and renting the upper. My monthly mortgage was $1480, and I collect $1050 from the upper unit. I'm fairly confident I'll be able to rent the lower unit for $1300-1400. The crazy part was I didn't have to put ANY rehab into it either. Some minor fixes on the siding, which I did myself and I had to stain the outer deck.
Doolan, I think I looked at that property! At least, online I did :D I wasn't familiar enough with Milwaukee to take the leap just yet, but it sounds like a great opportunity, and will serve you well in the next year or two! Congratulations! Bay View is a great area too, from what I gather from family members in the area.
Amanda, I've grown up on the South side so I'm very familiar with the neighborhoods and where they are trending. I think being close to Lake Michigan brings a degree of safety to the investment, for that reason I really like the southeast side more than the north. I'm no expert by any means and have a ton to learn, but I'm good with investing. Investing in real estate is no different than investing in equities. There might be higher risk, higher returns to be made, however why not find deals with relatively low risk that still offer a solid ROI?
I like to think of it as I'll just accumulate cash and sit on the sideline learning until I find the right pitch. We're in a 10 year bull market and the economy is teetering with relatively small interest rate hikes. The yield curve has already inverted a couple of times. A recession will be coming, the question is when.
That’s great good work. I have a similar property in Riverwest right now. Good luck with this one!!
Househacking is the way to go!! Nice job! It's awesome to hear that there was very minimal rehab needed as well. Cash flow is king and even if BayView doesn't appreciate any further over the next few years you'll still be sitting in a great spot regardless if you live there or not.
@Aaron Stuiber thanks for the input. Which areas of Milwaukee do you focus on primarily. I know there are plenty of Foreclosures west of 43, however I'm always leery of those neighborhoods. I have a good amount of liquid cash, and would like to put together a team in the coming years to find some opportunities to flip acquire for cash flow.
Doolan, I am a property management professional in the Milwaukee market
Your old post caught my eye as we are located right in your neighborhood.
Congrats on getting into the Bay view market at the right time. How has the duplex been performing since your purchase last year?
Shoot me a DM, would love to discuss your model and future plans here in MKE
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