Milwaukee Buy & Hold Analysis

[Ryan Galasso]

I've been on the search for a duplex in the Milwaukee area to owner-occupy over the past couple months. The problem I'm running into is that no properties I've seen are close to providing cash flow or a good cap rate. Everything I've seen has been in the range of 4-6% Cap Rate and -$200 a month using the 50% rule.

What type of returns have you other Milwaukee investors received on small multi-family units? I'm factoring 5% vacancy, 5% maintenance, & 10% Capex. These all seemed reasonable percentages after doing some research on BP.

I'm happy to hear all of your opinions and thanks!

[Ryan Galasso]

@Andrew J. I’ve been looking in West Allis, Tosa, South Milwaukee, and all of Waukesha County. My girlfriend and I work in New Berlin/Brookfield area so we don’t want to get too far into the city.

@Dan C. I know that cash flow would be low for me but even with a cash purchase you’re only making 4-5%. That’s the part I’m struggling with. The properties I’ve seen are way overpriced for what they produce in rent. The day I see a cap rate over 7% I may have a stroke haha.