Teach me, my brain is a sponge - Madison, WI

[Zach Chappell]

Hello all!

Greetings from Zach Chappell, a novice investor from Madison, WI. I am a UW-Madison graduate in my late twenties who has been cultivating an interest in real estate investing for a couple of years, but has yet to do a first deal. At this point I have a good idea of the investment strategy I want to pursue, and a pretty healthy down payment ready to go.

I am interested in cash-flow properties, and more specifically, in what has been coined "hybrid" real estate investment. This strikes me as, on the continuum of risk, a happy medium between house flipping and pure cash flow properties.

Naturally, I started by studying my local market, Madison. However, I have been hard pressed to find a multifamily that even approaches the 2% rule - most properties on the market will leave you breaking even or in the red at the end of the month. I am very keen on learning more about the Milwaukee market.

I am eager learn, network, and grow in knowledge and experience. Please contact me in you are a WI investor that would like to chat, or anyone that can offer good advice to an aspiring investor.

Best regards, 

[Account Closed]

@Zach Chappell  I am currently living in Madison and I too was looking to start buying properties here, but also realized that without a very large down payment it was difficult to find a property that cash flowed the way I wanted it to. I have a coworker that bought two multifamily properties downtown near the UW campus and based on what he paid I have no clue how he even comes close to breaking even every month so I understand your frustration and difficulty finding a decent place here in Madison. 

Even the single family homes my wife and I have been looking at are so expensive that we are probably going to be leaving the area within the next couple of years just so we can get a bigger bang for our buck and have a lower cost of living. Unfortunately for you and me the Madison market is just expensive and in my opinion, overpriced. If I end up staying here, I would look at an owner occupied duplex. Perhaps that would be a good place for you to start. In the very least it would allow you to lower your monthly living expenses and save more for the next purchase.

I'm originally from Green Bay so that is where I decided to invest. Real estate prices are a lot better and I have a lot of friends who are now contractors so that helps with a lot of the maintenance and rehab. Any particular reason why you are looking at the Milwaukee market or is it just because its cheaper than Madison and not too far away?

Good luck!

-Garrett