What's up with Milwaukee?

Question

Account Closed · Answer

@Aaron Barrett, there are a number of investors who are able to make nice cash flow and returns on properties in more difficult areas of Milwaukee as everyone stated above.  However, no only might the rehab cost more than the property will be worth, so you must bank on cash flow to get any sort of returns, you also will need to manage these properties yourself.  Third party property managers are great, but some of these units will need a very close "hands on" approach and a third party manager might not have the ability to do that.  If you fully understand the market, can self-manage, and are comfortable collecting rents in the areas, there is a lot of money to be made.  Just be sure to do your research and discuss with others about each neighborhood in Milwaukee.  It's a great city, I've just seen a lot of people get burned because of the "cheap properties".

Logan Smith · Answer

If you have a chance drive the areas you see the dirt cheap properties and you will understand. Most of those areas are high crime and you will have more headaches than cashflow. But there are pockets here and there where you can make it work, I'm talking more about the north side here at least.

Brock Y. · Answer

$60K rehab for a property that will be worth $30K when it's done is the big reason.

Michael Henry · Answer

@Aaron Barrett some of the areas might not work for investors because for the crime (red zone), but there are many investors who purchase in these areas.

Many investors who invest outside the area stated above want below the market product. There are a lot of property that make sense but many investors need to have really good numbers for them to move on the deal. This changes every day as more real estate deals are harder to find.

Dan C. · Answer

@Aaron Barrett Most of them do sell, many to investors.  Yes you can make great cash flow, but they ones which can be bought for cheap take a lot of work to manage correctly.

Michael Braatz · Answer

is there a more specific area you are looking at? Some areas are quite bad and cash flow can disappear in maint, vacancy, and delinquent rent.

What's up with Milwaukee?

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