Milwaukee,Wi

[Jennifer Smith]

Hi my name is Jennifer. I've been a homeowner for 5 years and was an accidental landlord for two of those 5 when I decided to move back home and pay off my student loans. Now that I'm debt free (excluding my mortgage ) I wanted to get started in investing in real estate. I live in Southern California and can not afford to get started investing in my local area. After doing research I've narrowed my focus to Milwaukee, Wi. Based off of what I've seen online (Redfin), the numbers look good and I will be able to meet the 1 (even 2) percent rule. My questions for anyone who could help are as follows: 1) How do I get accurate rental rate information (right now I'm doing my calculations based off of reported rental income on Redfin). 2) Before I get started, I know I need to set up my team. Does anyone know of a reputable realtor/ property management company/ contractor in the area? 3) what are the best areas in Milwaukee to invest? I'm currently looking at the river west area? 4) Is Milwaukee even a place I should be considering? Are there better opportunities closer to where I live in Southern California. I'm looking on obtaining my first property by summer 2017. I can start as early as spring. Right now I'm interested in building relationships and am eager to get into the real estate game. Thanks in advance for your input! Jennifer

[Pat Parrillo]

Welcome @Jennifer Smith 

Congrats on becoming debt free and best wishes on investing. Regarding your search for properties in Riverwest I own a duplex in Riverwest and would be happy to comment on my experience. @Michael Crane brought up several good topics to consider and there are some great ways to address those items. 

I personally have had success with longterm renters in Riverwest 3 and 4 years in my duplex and their have been many new businesses that have moved into the area over the past few years. I personally wouldn't consider it lower income compared to many other zip codes in Milwaukee but that is my opinion. In regards to heat and snow those are items to consider but I have written into my lease snow removal is the tenants responsibility and any fines they are responsible for paying and haven't had any issues with that. Also, they are responsible for heat separately. Parking is at a premium in some areas of Riverwest so if you can get a property with off street parking that is a big benefit and you can charge a premium. 

Riverwest is a great place to invest however the inventory is very low. If you are investing out of state and would not be managing the properties yourself the 2% rule would be easier to find in other parts of Milwaukee, I think you will be much closer to 1% in Riverwest. 

Best wishes!