Are our metrics outdated??? This little Mid-West Market

[Shawn Ackerman]

Hello everyone,

I hope you’re all doing well. I’m currently looking to gain some insight into how others approach out-of-state (OOS) investing and would love to hear which metrics you prioritize when evaluating a new market.

For context, I’ve been investing in Milwaukee, WI, and have based my strategy on the following criteria:

1. Price-to-Rent Ratio: I’ve focused on the Milwaukee market because I can find properties under $150K that meet a 2% rent-to-price ratio.

2. Landlord-Tenant Laws: The eviction process is relatively efficient, typically taking around 45 days. While the climate has shifted toward the middle, it remains much more landlord-friendly compared to neighboring states like Illinois.

3. Direct-to-Seller Opportunities: The market is excellent for wholesaling, as we can draft our own contracts without needing to involve an attorney for every transaction.

4. Population: The city itself has a stable population of over 550,000.

5. Housing Stock: There is a strong availability of multi-family assets, specifically duplexes, triplexes, and quadplexes if you know where to look.

6. Public Record Accessibility: Accessing tax records, water bills, code violations, and sales history is straightforward and transparent compared to many other regions.

What specific metrics or qualitative factors do you look for when determining if an out-of-state market is a good fit for your investing career? I look forward to hearing your thoughts!