Buying 4 plex in Milwaukee ,Wi , is it worth it ?

[Sam Askar]

Hello All ,

I live in NM. I have few Rentals here in NM. I build and keep and rent. I am looking at the prices for the some 4 plex buildings In Milwaukee,WI and the prices are unreal. I know some were in 10k for SFH and some duplex less than 50k. I understand all of those will be in C type or D type and you get what you pay for

Few of the 4 plex that I am looking at are in 200k range.

Will that be in higher C type or lowers B type Neighborhood?

What are the good rental Neighborhoods to look for ?

What type of rent do you get ? Maintenance on the buildings ?

ROI?

What are you paying for property Management for these kind of properties?

would like to see the opinion of any Investors or property managers who have dealt With with these type of deals.

[Joshua Martin]

@Sam Askar That's a crazy question to try and answer. It depends what, where, and how you buy a property.

I see people in A/B class that have returns probably around 2-3% whatever metric you use (lame is my point, unless you're big on debt paydown, which is almost never why people like Milwaukee), but then I see guys doing hilarious and lease option rent to own setups where their returns are something like 1,000%...

And if you're going for value add hopefully you're shooting for that infinity symbol either way.

None of that is probably helpful, but a general point might be that they're super hard to find wherever you're looking, but there's probably deals in your own back yard just as there are in MKE.

If you're talking about the MLS, it's kind of a joke and generally none of the locals pay that.

Most MKE housing stock, especially in what are now C/D class areas, was built between 1890-1910. Well, 50+ years of neglected maintenance leaves you a lot of catching up to do. 

Out of state people do build successful inner city cash flow portfolios, but based on what I've seen over the last few years, for out of state folks it is the exception rather than the rule.

Best of luck wherever you're making moves!