Milwaukee vs Cincinnati

[Andy Tang]

Hello Everyone,

New investor here. I recently purchased a condo in California and realized it was a “So so” investment. The real benefit, was that it helped build the confidence I needed to get started in real estate investing. 

As I’m saving up for another down payment, I’d like to sharpen my axe by deciding and learning about the next location for my first out of state property. I really like Milwaukee and Cincinnati. 

I want to invest in single family homes and small multi’s around $200k that can cashflow now or at least in a few years. I’m a dock worker for my 9-5 and I’d like to protect myself against possible automation taking over my job by investing in real estate. 

So the question is….does anyone have any thoughts, opinions, experiences when it comes to choosing Milwaukee or Cincinnati? 

Thank you in advance,

Andy

[James Konvalinka]

@Andy Tang Hey Andy! Not sure about Cincinnati but I know here in Milwaukee you can do pretty well with $200k for rentals. If you are looking for single families, for the most part you can get rentals in some pretty nice C/C+ areas around $120k - $150k. These on average will bring in about $1200 - $1300 a month for a 3 bed / 1 bath depending on condition. Same thing with Duplexes, for the most part you can get into some really nice areas for $150k - $200k. The only thing with single families is once you start getting over $150k it starts to get a little thin on cash flow depending on where you buy at. Yes, some areas that are a little nicer, C+/B-, you might be able to get closer to $1500 a month in rent but the purchases prices tend to go up pretty drastically as well. ($180k -$250k+)

But it really comes down to what exactly your goals are for your rentals, how much cash flow you are looking to get and if you want to buy in an area that will see more appreciation. There are some really good areas that I believe are going too start appreciating nicely over the next few years due to a lot of money being invested into the infrastructure, small businesses and the area overall. 

The only cavoite is that you really need to make sure you do your research on the market here. I am not sure how familiar you are with Milwaukee but there are some areas that can look great on paper, really lower purchase price with pretty strong rents, However, these can be pretty rough areas that generally have a higher crime rate and tend to have more maintenance calls. If you are going to invest in either of the cities I would suggest finding an investor friendly agent who has worked with long distance investors and has a solid knowledge base on the markets and what to look for and what to avoid. Also, if possible try and take a trip out to both cities to drive around and check the areas out for yourself!