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Updated about 9 years ago on . Most recent reply
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4plex in Milwaukee - Input Needed
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

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.