Milwaukee Neighborhoods - Where to look, where to avoid

Member since 2023 · 1 post · 2 votes

Hello all, looking at a few different markets around the country and wanted to get a better read on Milwaukee WI. I am looking for single family and multi-family (2-3 units) around the $200k price point. There looks to be many deals around the city but with high crime rates and and relatively old homes throughout, I wanted to learn about whether there are any up-and-coming neighborhoods, or places that I should avoid all together.

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Rebecca KnoxBusiness Member

Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes

There's a lot of areas that most investors buy in that fit those parameters.

Probably stay out of 53206 if you're from out of state or don't want to be an extremely active investor and drama doesn't entertain you.

Captain Save-A-Home LLC

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
2y
@Kris DeVito
where are you located? can you invest locally instead?
0 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2y
You can find a lot of information about Milwaukee neighborhoods on YouTube. We have about 66,000 duplxes, but not many are for sale (because why would a small investor ever sell a duplex?) and they come in 2 types: the old 1920s which have great cur appeal, but are expensive to work on and the 1960s which are much more economical, but look like a shoebox.
Price is actually an effective filter for neighborhoods, but after 7 years of appreciation 250k is really the lowest I would go for a duplex (these used to be about 120k-140k back in 2015).
3 Reply
Rebecca KnoxBusiness Member
Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
2y
There's a lot of areas that most investors buy in that fit those parameters.
Probably stay out of 53206 if you're from out of state or don't want to be an extremely active investor and drama doesn't entertain you.
Captain Save-A-Home LLC
Website View Page
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Lara Pfeffer
Member since 2023 · 28 posts · 13 votes
2y
Being a new investor here in MKE area, born & raised!... I appreciate your insight Marcus! Was that 66k duplexes, in MKE alone? Holy cow really.
1 Reply
Lara Pfeffer
Member since 2023 · 28 posts · 13 votes
2y
Quote from @Rebecca Knox:

There's a lot of areas that most investors buy in that fit those parameters.
Probably stay out of 53206 if you're from out of state or don't want to be an extremely active investor and drama doesn't entertain you.

haha!
0 Reply
Quincy Jones
Member since 2023 · 32 posts · 6 votes
2y
I am also looking in Milwaukee, had a real estate agent literally give me a drawn out map of the areas color coded to show the different others that are the best to the worst, I’d start looking in areas that are starting to or in the process of being gentrified. There’s a lot of equity to be had in these areas. Anything close to the water, brewers hill is trending, river west, harambee, Enders. A lot of ppl getting orgcrf out flock to upcoming neighborhoods cuz they get priced out of the A neighborhoods.
1 Reply
Lara Pfeffer
Member since 2023 · 28 posts · 13 votes
2y
Quote from @Quincy Jones:

I am also looking in Milwaukee, had a real estate agent literally give me a drawn out map of the areas color coded to show the different others that are the best to the worst, I’d start looking in areas that are starting to or in the process of being gentrified. There’s a lot of equity to be had in these areas. Anything close to the water, brewers hill is trending, river west, harambee, Enders. A lot of ppl getting orgcrf out flock to upcoming neighborhoods cuz they get priced out of the A neighborhoods.
Thanks much Quincy!
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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2y
Quote from @Lara Pfeffer:

Being a new investor here in MKE area, born & raised!... I appreciate your insight Marcus! Was that 66k duplexes, in MKE alone? Holy cow really.

Thats for the metro area, so Tosa, West Allis etc included, and a a hand full in the surrounding counties.
1 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2y
Quote from @Quincy Jones:

I am also looking in Milwaukee, had a real estate agent literally give me a drawn out map of the areas color coded to show the different others that are the best to the worst, I’d start looking in areas that are starting to or in the process of being gentrified. There’s a lot of equity to be had in these areas. Anything close to the water, brewers hill is trending, river west, harambee, Enders. A lot of ppl getting orgcrf out flock to upcoming neighborhoods cuz they get priced out of the A neighborhoods.

A word of caution on "up and comming" in Milwaukee and put that on a time scale. River West has been labeled "up and comming" already in the 90s, still on the way. Harambee is much lower priced (for a reason) and only the east side of it looks the part. Brewers Hill has seen some new condo buildings along the river, but you go a few streets to the west, very differnt story.

Milwaukee is a very linear market, things don''t change fast here. So while there is gentrification, you have to be realistic about timeframes and think in decades not years. The upside is that this linear ehviour makes it also prodictable. Areas that have been good 30 or 50 years ago are still good today.

One wildcard though.The city of MKE has initiated a projected called GrowMilwaukee, which is based on the majors vision to increase population (for fiscal reasons, more people per square mile) and they have identified the lack of midrise mixed use districts - they call it the "missing middle". And it is missing indeed. If we were to see major changes in zoning and redevelopment we could see some LA style gentrification of neighborhoods. But too soon to tell.
Sort term the redevelopment of the freeway system will set economic impulses. Contruction is about half way done on I43 and I41 and the areas served by improved access will likely see an increase in value and populatiry.
4 Reply
Quincy Jones
Member since 2023 · 32 posts · 6 votes
2y
Quote from @Marcus Auerbach:

Quote from @Quincy Jones:

I am also looking in Milwaukee, had a real estate agent literally give me a drawn out map of the areas color coded to show the different others that are the best to the worst, I’d start looking in areas that are starting to or in the process of being gentrified. There’s a lot of equity to be had in these areas. Anything close to the water, brewers hill is trending, river west, harambee, Enders. A lot of ppl getting orgcrf out flock to upcoming neighborhoods cuz they get priced out of the A neighborhoods.

A word of caution on "up and comming" in Milwaukee and put that on a time scale. River West has been labeled "up and comming" already in the 90s, still on the way. Harambee is much lower priced (for a reason) and only the east side of it looks the part. Brewers Hill has seen some new condo buildings along the river, but you go a few streets to the west, very differnt story.

Milwaukee is a very linear market, things don''t change fast here. So while there is gentrification, you have to be realistic about timeframes and think in decades not years. The upside is that this linear ehviour makes it also prodictable. Areas that have been good 30 or 50 years ago are still good today.

One wildcard though.The city of MKE has initiated a projected called GrowMilwaukee, which is based on the majors vision to increase population (for fiscal reasons, more people per square mile) and they have identified the lack of midrise mixed use districts - they call it the "missing middle". And it is missing indeed. If we were to see major changes in zoning and redevelopment we could see some LA style gentrification of neighborhoods. But too soon to tell.
Sort term the redevelopment of the freeway system will set economic impulses. Contruction is about half way done on I43 and I41 and the areas served by improved access will likely see an increase in value and populatiry.

Thank you for this information this is very helpful!!! I wish I could afford California because it is where I live but housing is so overpriced none of the rents wouldl cover the mortgage let alone pull in any cash flow. Milwaukee is my firsst choice then Im looking at Cleveland Ohio. But I see what you mean about gentrification looks very slow.
0 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2y
Quote from @Quincy Jones:

Quote from @Marcus Auerbach:

Quote from @Quincy Jones:

I am also looking in Milwaukee, had a real estate agent literally give me a drawn out map of the areas color coded to show the different others that are the best to the worst, I’d start looking in areas that are starting to or in the process of being gentrified. There’s a lot of equity to be had in these areas. Anything close to the water, brewers hill is trending, river west, harambee, Enders. A lot of ppl getting orgcrf out flock to upcoming neighborhoods cuz they get priced out of the A neighborhoods.

A word of caution on "up and comming" in Milwaukee and put that on a time scale. River West has been labeled "up and comming" already in the 90s, still on the way. Harambee is much lower priced (for a reason) and only the east side of it looks the part. Brewers Hill has seen some new condo buildings along the river, but you go a few streets to the west, very differnt story.

Milwaukee is a very linear market, things don''t change fast here. So while there is gentrification, you have to be realistic about timeframes and think in decades not years. The upside is that this linear ehviour makes it also prodictable. Areas that have been good 30 or 50 years ago are still good today.

One wildcard though.The city of MKE has initiated a projected called GrowMilwaukee, which is based on the majors vision to increase population (for fiscal reasons, more people per square mile) and they have identified the lack of midrise mixed use districts - they call it the "missing middle". And it is missing indeed. If we were to see major changes in zoning and redevelopment we could see some LA style gentrification of neighborhoods. But too soon to tell.
Sort term the redevelopment of the freeway system will set economic impulses. Contruction is about half way done on I43 and I41 and the areas served by improved access will likely see an increase in value and populatiry.

Thank you for this information this is very helpful!!! I wish I could afford California because it is where I live but housing is so overpriced none of the rents wouldl cover the mortgage let alone pull in any cash flow. Milwaukee is my firsst choice then Im looking at Cleveland Ohio. But I see what you mean about gentrification looks very slow.
Instant cash flow investing as we have seen it in the 2010 years has been a historic anomalie. With extremely low rates and high rents it was possible to just buy a few properties and basically use them as an ATM to fund your life and quit your job. We are back to normal. Nobody gets excited to invests in the stock market for dividends to fund their life, although thats a really good concept. People understand that it is possible, but takes a lot of capital.
You can still buy cash flowing properties in Milwaukee, but I caution everyone from pushing this to the extend possible: you end up in the hood with headache tenants, rent colection issues and old delapitated buildings that need massive capex. Finding a good balance is key.
Here are the Top 15 rental markets according to rentcafe, MKE is #3
2 Reply
Tim Ryan
Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 654 posts · 622 votes
2y
Kris,
There are many ways to anticipate future appreciation. Here's one way to do it. Where would you live if you moved there? For me that would be on the water of Lake Michigan (because I'm from Los Angeles and even those houses are cheap for us). For others it would be very close to the lake. Of course that's not the only place. That's for single family and small multis and if that's your game then that's good. For me, I only buy apartments, mixed-use, and commercial (office). I can tell you more about it if you'd like.
Where are you located?
0 Reply
Quincy Jones
Member since 2023 · 32 posts · 6 votes
2y
Quote from @Marcus Auerbach:

Quote from @Quincy Jones:

I am also looking in Milwaukee, had a real estate agent literally give me a drawn out map of the areas color coded to show the different others that are the best to the worst, I’d start looking in areas that are starting to or in the process of being gentrified. There’s a lot of equity to be had in these areas. Anything close to the water, brewers hill is trending, river west, harambee, Enders. A lot of ppl getting orgcrf out flock to upcoming neighborhoods cuz they get priced out of the A neighborhoods.

A word of caution on "up and comming" in Milwaukee and put that on a time scale. River West has been labeled "up and comming" already in the 90s, still on the way. Harambee is much lower priced (for a reason) and only the east side of it looks the part. Brewers Hill has seen some new condo buildings along the river, but you go a few streets to the west, very differnt story.

Milwaukee is a very linear market, things don''t change fast here. So while there is gentrification, you have to be realistic about timeframes and think in decades not years. The upside is that this linear ehviour makes it also prodictable. Areas that have been good 30 or 50 years ago are still good today.

One wildcard though.The city of MKE has initiated a projected called GrowMilwaukee, which is based on the majors vision to increase population (for fiscal reasons, more people per square mile) and they have identified the lack of midrise mixed use districts - they call it the "missing middle". And it is missing indeed. If we were to see major changes in zoning and redevelopment we could see some LA style gentrification of neighborhoods. But too soon to tell.
Sort term the redevelopment of the freeway system will set economic impulses. Contruction is about half way done on I43 and I41 and the areas served by improved access will likely see an increase in value and populatiry.
Thank you! This helps ALOT. Im seeing what you mean. It's a slow and steady market. It looks like to me that Milwaukee is best for flippers and buy and hold (passive income) but not great for short term equity. You are so right!
0 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2y
Buy & hold for sure, STR works well, flipping if you live in Milwaukee - it's too hard remote. Growing MKE just released their proposal for the new zoning ordinance, which will change the city as we know it and bring a wave of development. I'll post a YouTube video in the next few days with details. And at some point I should make one about best neighborhoods to invest.
1 Reply
Quincy Jones
Member since 2023 · 32 posts · 6 votes
2y
Quote from @Marcus Auerbach:

Buy & hold for sure, STR works well, flipping if you live in Milwaukee - it's too hard remote. Growing MKE just released their proposal for the new zoning ordinance, which will change the city as we know it and bring a wave of development. I'll post a YouTube video in the next few days with details. And at some point I should make one about best neighborhoods to invest.
I’m looking to buy and hold. I want to build a rental income portfolio in milwaukee. Need lender financing.
0 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2y
Quote from @Quincy Jones:I’m looking to buy and hold. I want to build a rental income portfolio in milwaukee. Need lender financing.

I wish I could tell you it's easy, but it's not. Home prices have been going up for 10 years, so quality stuff is not cheap. And non-onwer occupied rates are closer to 8%. We have a dire housing shortage in Milwaukee, so the market is competitive and everything worth buying sells quick and usually with multiple offers.
In that environment buying in the hood becomes very tempting, but that little bit of cash flow comes with a huge cost in headaches, the probability of property damage (things like a charcoal grill in the living room) and long term you might just be treading water.
Average net cash flow is probably around $200 per door after you have stabilized the property, so you need a few units before it amounts to something.
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