Where to Invest and Where to Avoid in Milwaukee Wisconsin

[Simon Panosh]

I'm a real estate investor from the Seattle market looking out some out of state options, specifically Milwaukee, Wisconsin. Would love to hear from others on if this is a good general area to invest and then specifically which neighborhoods/areas to avoid (eg. high crime, no upside appreciation etc.), and or which neighborhoods to focus on.

[Dawn Anastasi]

Originally posted by @Dawn Anastasi:

When investing for cash flow, it's best to be realistic.  I know some of my properties are worth way more than I paid, but only because I paid very little for them.  However, I know that they're not going to skyrocket in value.

Example: 3 bedroom single family purchased for $23,000, put very little into it (a few thousand), and now it's probably worth about $55k - $65k based on other sales in the area. However, I've rented it out to the same family since I bought it, and since then, they've paid me $49,875 in rent. That's more than double what I paid for the house. They pay every month, they take care of the house, so I am happy with that investment.

It's funny reading this thread I posted on from 2 years ago. Update: the SAME tenants are still with me ever since I bought the house in November 2012. They pay $875/mo and as of this writing, they've paid me $71,750 in rent on a house I purchased for $23,000. It amazes me sometimes on the return I'm getting on that house. I still haven't raised the rent on them. They still take care of the house and will probably live there another 10 years.