Milwaukee Investing- Potential Trouble with Contractors
I am starting to crack down on my next investment property, and have been looking mainly in Milwaukee. I am living in Chicago but went to school in Milwaukee and I am somewhat familiar with the surrounding areas. I am looking at one particular property that I believe fits the BRRRR strategy, but one of my biggest concerns with that would be managing contractors from out of town.
Looking to see if anyone that's invested in Milwaukee has any insight in terms of finding contractors to work in less desirable areas. I don't have any experience in that but I am assuming it will be harder to find contractors that would be motivated to work in a more dangerous part of town.
Any advice or book recommendations on the screening/managing contractors process would be greatly appreciated!
Most Popular Reply
You're right and expect to pay higher prices to if your properties are in Trulia dark blue areas.
You'll also have a challenge finding trustworthy PMs in high crime areas---many of the successful landlords in that area that I've seen know the area well (may have even lived in the area at some point or still do), manage their own properties and do a lot of their own work as well.
My advice is to stay out of F areas and go for C/B areas.
Top things to get before hiring a contractor (Wisconsin)
1. Copy of driver's license
2. CCAP check
3. W-9 (if over $500 and not a inc)
4. Lien Waiver--anytime payment is made
5. Insurance
6. Verication of all contractors that will be on job site--just ask are they doing the work themselves or subbing
7. If a license is required, DSPS check
8. Formal quote or contract in writing with clear and detailed expectations of each party.
Check WI contractor licenses: https://app.wi.gov/licensesearch
Check for judgments, liens, lawsuits: https://www.wicourts.gov/casesearch.htm
Check LLCs: https://www.wdfi.org/apps/CorpSearch/Search.aspx
- Rebecca Knox
