Looking to invest in Milwaukee...

[Roland Jerez]

Looking to invest out of state and Milwaukee has caught my eye.

Does anyone in the BP Family invest in Milwaukee? Pros and Cons?

I’m trying to find a seasoned investor/PM/contractor/mentor in the area to guide me in the right direction, if possible?

Endless possibilities to gain with the right people.

[Marcus Auerbach]

@Roland Jerez and @Tony Hightower, Milwaukee is a great market and I am very grateful that life dropped me off here (for so many reasons outside of real estate as well), but remember the grass always looks greener on the other side.. Milwaukee is competitive and good deals are not easy to get under contract. We have about 1200 active local investors (my personal estimate) and the institutionals. You are correct on vacancy rates, we typically fill any vacancy within a couple weeks, and we don't have much turn over in the first place.

The city seems to be in the process of reinventing itself, at a pace we have not seen since the 1960s. We have a ton of new construction and 5 star appartement buildings are shooting up everywhere and so you need to be positioned correctly to compete. We rehab and own mostly single family properties in better chool districts outside of the MPS Milwaukee Public School system, which BTW is very challanged and covers most C class neighborhoods.

Cheap properties look good on paper, but I encourage everyone to look into the cycle of deferred maintenance, capex, tenant wear and tear, cost of PM, etc leading to a reluctance to re-invest in the property, leading to a lower grade tenant, leading to more wear, etc. And cashflow is the only source of income to pay for it all.