Out of state investing - input on Milwaukee market

[Victoria Tanaka]

Hello there! I'm based in NYC and have been trying to decide which market to invest in out of state. I think I want to move forward with Milwaukee, WI for the following reasons: I lived there for 7 years, know the area well, have a great network, and although population growth hasn't been as consistent, the rental demand is strong, and it's a city I still frequent a few times a year. 

I'd be curious if anyone has any experience (benefits or risks) in this market and what type of property you've invested in (looking at either apartments/condos or multi-family property). 

I'm also open to any advice you might have for someone who is buying for the first time and doing it out of state no less. Thanks in advance and happy to be joining this community!

[Nick Harrington]

Hey Victoria - 

I'm a real estate agent here in Milwaukee and work with a lot of out of state investors. I find most out of state investors are attracted to Milwaukee because of the lower price points, strong rental market, and cash flowing properties. 

Here is my two cents on out of state investing, specifically in Milwaukee. 

- I always recommend to invest in a market you know, and ideally in your local market. Investing in NYC poses it's challenges, which is probably why you are looking out of state. The fact that you have 7 years of knowledge of Milwaukee, a network here locally, and frequent the city helps you to make a confident decision when it is time for you to purchase.  

- As far as property type, it depends on what your short and long term goals are. From a buy and hold perspective, I would lean towards multi family properties, as this will yield the strongest cash flow. Milwaukee has a lot of duplexes in the area (granted, there has been a shortage of inventory recently). There is a decent air bnb market here as well if you are thinking the STR route, which lends more towards single family homes, but the buy box for an ideal Air BNB is going to be much more specific than a multi-family property that will cash flow.

- My personal experience investing here has been great. My portfolio is made up of multi-family properties predominantly in the East Side and Riverwest area, which I like because there is a strong demand for renters here, and rents YoY have been steadily increasing. 

- As always, you want to be sure you have a strong team in place you can trust including a lender, an investor friendly agent, and a reputable property management company. Happy to provide you some recommendations if needed. 

Reach out if you have any questions and want to have a more specific conversation regarding the benefits / risks