Investing in Milwaukee WI

[Nhi Tran]

Hello BiggerPockets Members -

I recently came across some duplexes for sell in Milwaukee, Wisconsin (I live in Houston, Texas). They are currently for sale at $28K with $1,200 rental income. If this is true, this is an incredible deal with huge ROI. However, I'm not familiar with the real estate market in Milwaukee and was wondering if any investors can advise whether this is a normal return on investment for this area. Besides flying up there to check out the properties in person, what kind of questions should I be asking the seller to ensure that this is legit? Thank you in advance for your comments and inputs.

Nhi

[Rebecca Knox]

Recently, I had several out of state investors asking for my opinion on some deals. A big package traveling around is properties that are owned by an investor that has been in the local news and it hasn't been positive pieces. 

The other deals that I have been asked about are extremely overpriced for the work required and areas they are in. 

The worst thing is when investors call me after they've made a bad purchase because there is little that can be done. No other local investor would buy the property at the price that they bought it....in some cases, a retail buyer may not have either so with great forums like BP and our local market having such a giving atmosphere when it comes to advice, it's best to try to reach out to several people for their opinion before your first buy especially if you are out of state. 

It's important to know that in Wisconsin, any docketed unsatisfied judgments need to be paid prior to or at closing (also, back child support, federal/state tax liens, open mortgages). 

I don't think I can post links on BP but google search for the following links and you should be able to find these websites which are helpful for your evaluation process. 

City of Milwaukee Portal--select property data  (this site will show you assessment, ownership info, taxes and code violations)**TIP: When the tax bill shows a large amount of 'special assessments', this could be the water bill not being paid or it could be code violations/city fines. 

Trulia ---enter the address and look at the crime map--they changed the map to shades of blue but the dark blue is RED or challenged areas. The darker the blue, the worse the area. 

WI CCAP---Circuit court records--look for cases that have CV, SC, TJ---any that show SATISFACTION NO will potentially affect closing.  (I noticed many don't realize that and pitch properties that aren't able to be sold at the price that they are at because it exceeds judgments and the seller has no money to bring to the table.)  The other thing you will see are any evictions for the property. 

Good luck on your REI adventure!