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Updated about 9 years ago on . Most recent reply

User Stats

31
Posts
10
Votes
Tiffany Bishop
  • Provo, UT
10
Votes |
31
Posts

4plex in Milwaukee - Input Needed

Tiffany Bishop
  • Provo, UT
Posted

Looking at a brick 4plex in Milwaukee.  It would be my first out of state investment and I am wondering if it is too much to take on (because of possibly being in a higher risk area).

It is in zip code 53205 right on the border by 53208 and 53233 (just south of James Groppi High School).  The seller described the neighborhood as B class with a large Asian population.  The duplex itself is very old (100 years old I think).  Rehab was done in 2013.

Below are the details:

Purchase price: $125k

Monthly rents: $2100 (4 2bds/1 ba all renting at $525)

Haven't decided yet if we would pay all cash or use a private lender but if we use the lender our PITI would be about $950. Using cash would leave $350 for Taxes and Insurance.

Maintenance (10%): $210

Vacancy (10%): $210

Management (10%): $210

So if we leverage our money, we are looking at about $520 CF/month.

All cash we are looking at $1120/month.

Do those numbers look right?  My biggest question is how locals view that area.  

Thanks in advance for any input!

Most Popular Reply

User Stats

139
Posts
100
Votes
Brandon Stevens
  • Investor
  • Lexington, KY
100
Votes |
139
Posts
Brandon Stevens
  • Investor
  • Lexington, KY
Replied

If the seller says B, you know its at least a C...Plenty of duplexes have sold in that area this year for 20k-40k. I wouldn't say its the worst area but its in the middle of some bad one, I would say I think your overpaying for the area.

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