Milwaukee rental buy and hold

[Don Jackson]

Can someone please poke a hole in this deal? I'm nervous about my first new purchase after years of sitting on the sidelines.

3/2 in Milwaukee, 1590 square feet

Purchase $42k

Rehab $25k

Closing and carry $3k

All in at $70k

Rent should be at least $1000, hoping for more.

I put it in a rental spreadsheet and after taxes, insurance, vacancy, property management, repair reserve, mortgage at 5% I'm getting $233 net

Nice neighborhood, just outside the downtown crime area.

I don't think Milwaukee is going to bounce back any time soon, but I don't see any huge problems coming either. If I can cash flow after keeping reserves for vacancy and repairs, then it seems like a decent deal. My strategy is long term buy and hold.

If you see any obvious problem, or something I'm not thinking about, I would love to hear it.

Thanks,

Don