milwaukee duplexes

[Renaldo Barbini]

im looking to invest in multi unit property. I continue to search around my area which is chicagoland suburbs. At the same time i see extremely low priced duplexes in milwaukee wisconsin. Yes i know some are in tough neighborhoods but some arent all that bad. They all would produce much better cash flow than things in my area...possibly 1300/mo in rents for 30k properties. Anyone have thoughts on these properties? And no i am not very concerned with appreciation. Thanks for your thoughts

[Dan C.]

@Renaldo BarbiniYes the city of Milwaukee can be great for cash flow.  To give you an example I rehabbed a duplex that I invested a total of $45K in, rents are $1,100. It's a decent area, and I have what I consider to be solid tenants.  But we do also have some neighborhoods that can be almost as scary as the ones portrayed in "The Wire" in my opinion, and that is obviously a big reason for those prices.  I'd recommend you start collecting information from a Milwaukee realtor who works with investors (look for Jenkins Ramon, he is very active on BP).  Also check out the Milwaukee Dept of Neighborhood Services website - they are the ones who will conduct at a minimum an exterior inspection after you buy and will require you to comply with anything they consider a defect.  And when you don't meet their deadlines they will fine you, and unpaid fines will end up on your property tax bill.