Young new investor in Milwaukee

[Kollin Ruiz]

Hi! I am currently a college student transferring to UWM and I am enthralled by the idea of financial freedom. I spend all my spare time reading books and listening to podcasts about economics, money, and especially real estate! My current goal is to purchase my first investment property in Milwaukee by the end of the year and begin house-hacking. However, my long-term goal is to establish and continue growing a real estate business for the rest of my life. I am very excited to grow my network with other investors in the area and I can't wait to continue learning!

[Ty Ash]

Hi @Kollin Ruiz!

Welcome to BP! Excited for you to start your house hacking journey. Some quick tips for you as you get started.

Go through these questions to help you on deciding if a deal makes sense for your situation:

While living in your house hack, can you get to a point where you are paying less out of pocket than typical rent for the area?

Do you have the potential to force some appreciation with some projects (my favorites are carpet, paint, and flooring)?

When you move out, will you be at close to breakeven when accounting for PITI and Expenses (even if you are close, this may make sense if the next question is yes)?

When you look at your BP Calculator for the deal, will you have built equity over 5 years with conservative appreciation assumptions for your market and tenants paying down your principal?

My guess is by putting down the low down payment/closing costs and some money into updates and repairs that you will have a positive impact on your net worth by buying your deal even if the cash flow is close to breakeven. Plus you'll hopefully have lower expenses while you live there that can increase your savings rate for the next deal. You just need to get started and make sure you're operating with reserves so that you can keep the deal for the long term.

Best of luck getting started! Here for you with any questions you have along the way!