Urban Short & Midterm Rental
Investment Info:
Single-family residence other investment in Milwaukee.
This is a 4 bedroom, 1 bath renovated property in the Honey Creek neighborhood. I worked with an out of state investor to help her acquire this property. I managed a few updates & then I handled the set up, including design and furnishing. It is walkable to a great area, is a 10 minute drive from the city center and there are several hospitals within a 10 minute drive making it a perfect mid-term rental. We will likely do a combination of short & midterm renting.
What made you interested in investing in this type of deal?
This is a great location, walkable to one of the most sought after areas in the city. Also, purchasing in December when you had the ability to negotiate made it enticing.
How did you find this deal and how did you negotiate it?
My client bought at exactly the right time, in the December 2022 'slump.' There were quite a few good properties just sitting on the market with not much reason other than people seemed reluctant to buy. Right after the seller took a price reduction, we offered $10,000 below the list price & asked the seller to do a couple of repairs as he was a contractor. He countered back at $5000 below list price.
How did you add value to the deal?
The property was renovated a few years prior so there wasn't much to do. My client put some money into a fresh coat of paint & we did a few deferred maintenance items.
What was the outcome?
This property is doing quite well as both a short & midterm rental. We are at roughly 90% occupancy since we listed it in early February and are currently booked through April. A house 2 streets down with a similar renovation, one less bedroom, but a dilapidated garage (our property doesn't have a garage) sold just one month later for $22,000 more than my client paid for this property.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a broker so I helped her purchase the property & I manage it.
