Best area to invest in Multi-Family under 175K

[Claire Rosenberg]

I am exploring multi-family properties for under 175K for my first investment property. I am looking into more turnkey properties but would also do minimal repairs.  From your experience, what would be the best city to invest in? 

[Marcus Auerbach]

@Claire Rosenberg you can find a duplex in Milwaukee for 175k, but it will either need work or be on a not so great street. Most of my younger clients start there, I think the 200 ceiling feels intimidating, but will eventually buy something in the low 200s. The reason is usually better value for the money.

I spoke with a BP member just before and the example we used was would you rather buy a 5 pound bag of oranges for $15 or a 8 pound bag for $20. Kidding aside, what you have to factor in is not only the better street, but also the higher rents you get for a place with bigger square footage and possibly an extra bedroom. That extra rent is usually a lot more than the extra monthly expense.

I bought my first duplex in 2008 and bought the smaller and cheaper of two, in hindsight that was a rookie mistake. Start looking at between 150k and 250k and see where YOU think the sweet spot is.