Milwaukee SFR expenses

[Michael Braatz]

Hey all,

I have mostly been looking into duplex's in the Milwaukee area, but I have recently found a SFR I think would work but I was hoping I could get some input from those in the market as to what I could budget for in terms of expenses (1200 sq ft 3 bed. 1.5 bath, home in good condition). My first shot at it goes as follows;

Capex $100/mo

Maint $100/mo

Water/sewer/trash: tenant

insurance $500/year

Vacancy 5%

management 10%

Thanks in advance!

Side note, the half bath could be turned into a full bath at the expense of closet space in master bed.  Is that something that would be worth it in the Milwaukee area?

-Mike

[Marcus Auerbach]

@Michael Braatz your numbers are a good starting point. Of course Milwaukee area is a wide definition and could be anywhere from 30-200k. I guess you are looking in the 60-80k range. Capex may be high or low, depending on the condition. Most houses will need a complete interior overhaul to the extend of 30k-40k in the next 10 years. You can do that up front as a BRRRR or do it over time, or push out as long as possible. How you do it will define your monthly capex. Maintenance is tied to the condition. $100 is a lot for a fully improved home, it is not enough for most homes in original condition.