Off Market Deal in Milwaukee

6 Replies

I have a house in an off market deal in the Milwaukee area that i am looking at, the property is located in the 53206 area code. I wanted to see what others thought about the numbers. The seller is looking for $15k, he says that may rent for $700 (I’m thinking more like $650 at the most). It has 3 bedrooms and 1 bath with a half bath in the basement. All mechanicals look to be in decent shape, roof is good, newer vinyl siding, recently replaced windows, all appliances will need to be replaced, the entire inside of the house will need paint, flooring will need to be replaced, I estimate 10k in repairs. The seller is also willing to provide seller financing, he is offering 10% with $3k down, monthly payment of $159. Know the area and understand that it is not the best area. I also see quite a bit of investors looking at houses in this area. I think the price for this area is a bit high. Please let me know your input.

I didn't mention, it is a single family and has 1,100 sqft

If you haven't rented to low income / section 8 I would suggest hiring a property manager unless your willing to put time into learning the system

If you haven't rented to low income / section 8 I would suggest hiring a property manager unless your willing to put time into learning the system

Lucas, 

I am investing with my IRA so I will have to use a property manager anyway. I know that investing with an IRA is a whole other discussion that can occur and have done a good amount of background on the details. That is besides the point though, why would I have to rent to low income or section 8? I see plenty of properties for rent in the area for market rates.

@Donald D Michna congrats on breaking into the off market Milwaukee deal arena.  Now, based on my experience in the market(I've got a little experience in the market), that property is in the hood, needs a great deal of repair, seller owes an exorbitant amount of back taxes or a combination of the 3.  If you are a contractor then that's awesome as you can whip the place into shape and save a huge amount of coin.  I invest heavily in that area as well as 53208, 10, 12 &16.  Once you get the property locked up give me a buzz and I can get you some specific advice on it.  Now the 53206 zip is not all bad.  For example I have an off market 4 unit in that zip, a block or two west of 43 off North Ave.  That's in a decent pocket, so not all bad for that zip.  Just be careful and tread lightly in 06.  Lastly, if you are picking the property up vacant I'd strongly suggest getting a rent assistance tenant in there.  I can PM you my contact down at the housing department who will tell you everything you need to know from advertising your unit to completing the rent assistance inspection.   All the best.  Always remember to persist and you will WIN!!!!

@Shawn Ackerman, I did not pick up the property due to the location. I would like to keep in touch with you in the future. I will persist!

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