Investing out of state PROS / CONS MILWAUKEE WI

[Shawn Ackerman]

Hello All,  Thanks for taking the time to read through my experience.  What I am going to share is what I have learned through the years, good and bad.  I would like to share my experience with you so that you may be better at doing it virtually.

1. Picking a market - When I picked the Milwaukee WI market I had a few metrics must haves - Price to rent ratio(needed to have a 2% minimum), Landlord Tenant Laws - The market must have a relatively owner friendly approach to evictions(Gov't moratoriums aside), Ability to build a team, low cost of entry(not the best determining factor as cheap properties can be misleading on paper vs performance) and multi-family availability.

2. Team - Created a relationship with Property managers - This has been up and down honestly(as I don't own the management companies so cannot implement my exact systems and practices. It's taken me 5 years to finally get this right.  Realtor - Need a solid realtor for comps, understanding of different nuances in the market(Milwaukee is real block by block in high cash flow areas), title company, insurance company and contractors.  

3. Deals - I've been fortunate enough to learn the skill of sourcing my own deals(Direct to seller). This has allowed me to grow a rental portfolio at wholesale prices. Nothing wrong with MLS or buying from wholesalers but you are paying a middle man fee when going those routes.

4. Maintenance. - I've learned that it is now best to either buy vacant, tenant proof, place tenant.  Initially I always looked for occupied units to buy but this strategy presents the issue of having to renovate a unit around a tenant.  There are limitations with this and usually results in alot of nick nack repairs along the way.  I've learned that must replacements are Plumbing, electrical(upgrades from fuse to circuits, roofs)

5. Scaling - I learned that judging a market bye one or two units was a waste of time.  It was only to I reached about 14 doors where I feel that I can accurately account for how the properties(asset class) was performing.  Utilizing the delayed financing strategy has helped me tremendously.

6. Strategy - Are you a multi-family, single family, lease option, section 8 $30-$50K, $50K - $80K + investor? Are you cash flow, appreciation, middle of the road style investor?  I've learned that the Niche is important to my style of investing.  I started as a sub $30K investor in D areas but have transitioned to a more appreciation, lower cash flow B class type of asset.  

I Really hope this helps someone. GO BUCKS!!!!