out of state investor

[Beethoven Penalo]

I'm a out of state investor currently in the Boston market and looking to invest in Milwaukee since it's more affordable for me, I'm looking for an investment property 110k price range max. I'd appreciate any insight or guidance. 

[Marcus Auerbach]

Milwaukee is a lot cheaper than Boston, but not that cheap anymore! The median home price is 220k, which means that you'd be buying in a really rough part of town and the property will probably come with a lot of deferred maintenance. While the cash flow looks good on paper, part of the issue is you are not going anywhere, because capex tends to exceed cash flow over time. The other issue is that managing this type of property will put you to the test, even when you are local. And not every PM will take on management. 

A good budget is 150-220k for a SF and 250-350k for a duplex, and while those price ranges are ironically a lot more competitive than low end listings, but will be in almost rent ready condition and be a lot easier to manage remotely/PM.