First Deal - House Hack Milwaukee, WI

[Jacob K.]

Hey all! Thanks in advance for your time and input!

I'm a recent college grad and have just begun looking for my first deal. During these exciting times, I'm trying my best to remain patient and do this the smart way. Up to this point, I have paid off all my debts and saved up enough for a small down payment. I'm pre-approved with a local lender for a 5% down 30-year fixed mortgage, contingent on owner occupancy. I have been working with a couple agents, trying to find one familiar with investing and have been monitoring the MLS the past couple months to get familiar with the various markets I'm interested in. My budget is about $160k and I'd really like to find something I can put some sweat equity into while living there. Based on my criteria, I have been looking in the south-western Milwaukee area, particularity West Allis, Wauwatosa, Greenfield, etc.

For anyone here who may be familiar with these markets, I'm hoping to get some opinions on my analysis on two of the better properties I've found. *Taxes, PMI, and insurance are bundled into my mortgage value*

Property 1: 2/2 Duplex that would cashflow up to $450/mo. assuming no unexpected expenses. Rent could be raised on unit 2 by $50-$100/mo. if I put some time into updating it.

Property 2: 2/1 Duplex on a quiet street surrounded by nicer homes. This is the best deal I've found so far. Definitely potential for rehab equity here. House rents as is but interior could be brought up-to-date with a little TLC. Cash flows about $525 in an ideal scenario.

What do you think of these numbers? Anything I may be overlooking or over/under estimating? About $200/door seems to be a good deal from what I've found. I'm not sure what metrics to target in West Allis. My primary criteria is finding someplace that is cash flow positive in an absent owner situation and reducing my monthly cost of living. My search has been focused mostly on grade C and C+ properties on streets that seem to have some gentrification going on. I like the idea of having some value-add opportunity, but don't yet have the resources to do a complete rehab brrr.

I don't see as much potential for appreciation in West Allis as surrounding areas, but I think that's okay for my first property. My main concern now is getting out of paying $1000/mo. for rent so that I can save up for future deals.

Thanks again for your time and consideration!