First time investor: investing out of state (CA to Milwaukee)

[Gabriela Palomino]

My question is for investors currently investing in Milwaukee or any long distance investors. I have a long road of researching ahead of me and I am aware of this but looking for some guidance towards the right direction.

I am still in the saving and learning stage and trying to soak up as much knowledge as possible. Im 22 living on my own in Southern California so my 65k a year won’t go very far here. I’ve been really interested in Milwaukee for the cheaper properties as well as my boyfriend and I have some friends out there. I have visited once and it seemed like a decent place to live. I am not looking to relocate and I know Milwaukee has its fair share of not so great areas as well as fairly expensive areas.

For Milwaukee investors:

I'm interested in trying to apply the BRRR strategy here and I'm just looking for some tips seeing as my very first deal will be long distance. Are there any laws or taxes that might be Milwaukee/WI specific that I should look out for? Do you have a suggestion any sites I can use to figure out WI property taxes or extra costs? What areas do you believe are on the rise and are there any zip codes/areas to definitely look out for?

For long distance investors:

As I said above I am planning on applying the BRRR strategy and wondering how you handle not being able to inspect the properties or neighborhoods without physically being there? I don't have a trusted group of people such as contractors or real estate agents and don't want to have to bring my friends into my business so we don't eventually have problems if the miss something or didn't think it was important. How would you deal with a first time buy in an area you are essentially flying blind in?

If you have any recommendations like books or websites please let me know! Thanks in advance to anyone who responds! I appreciate it!

[Adam Gollatz]

Theres a lot of competition in Milwaukee because the lower price point so it not only draws a lot of locals but that outside investment as well. My biggest piece of advice would be to really dive into what type of approach you want to take with regard to asset classes. You can find 50k duplexes in ok areas that you can squeeze 1500/mo rent out and some people do well, but that comes with a unique set of challenges, especially for an out of state investor. Or you can take the single family or higher asset class approach which wont bring you as much cash flow, but has opportunity for building wealth.

Ive done out of state in a few markets and the two key pieces of info are going to be your deal sourcing (realtors/wholesalers) and your PM company. A good place to start would be local forums. Brew City is a good one on facebook for Milwaukee that Im a part of. The people that run it are very active and helpful.