Milwaukee low income Rentals

[Stuart Marshall]

Greetings, I am looking for guidance on low income rentals in Milwaukee, WI.  I own 2 duplexes and they have been listed with a local Prop. mang. co. for 4-5 months with success in filling them.  These were my first "out of state" properties.  To do over would vet my real estate agents much better and I am not happy with the Prop. Mang. co.

The real questions are is there anyone with knowledge of this market to open to a bigger discussion on the issues: 

Who has great property  management co. they would recomend and Real Estate agents that deal in low income housing in Milwaukee?

Thank you,

Stuart

[Rebecca Knox]

@Stuart Marshall who was your buyer's agent and why were you not happy with them?  Just out of curiosity, would you be able to sell the property today and at least break even? 

What is Nimius's response to the vacancies? Do you see them marketing the unit? Are there applicants but none that will pass their screening?  

I know Dennis Schramer is a smaller operation but they have had some very good reviews. In fact, they are the only PM that manages in low income areas who actually have received a few documented good reviews from clients.  There aren't many PMs that manage in those areas because of many things; cost, time, headache and safety.  In fact, if someone asked me today who the best bet would be, I would say Nimius--and this is based on the many calls I get from out of state 'investors' who have bought properties in the hood, typically at way too high of a price, and want to sell shortly after and who those companies/people are that sold them or are managing these properties.  

Dennis also just hired some people as well. I always think it's best to speak with the person if you haven't already and share your concerns to see if you can come up with a resolution.....or find another PM but be prepared for different problems.  The other main challenge in low income investing is maintenance costs and all contractors, like PMs, do not like to go in the hood so expect to pay premiums.

Most of the people who I see that are successful in low income housing actually live in the neighborhoods, do the work themselves and self-manage.  They are extremely hands on. This is not PASSIVE income. Low income housing investing in Milwaukee should be considered active income in my opinion.   The biggest issue I see is that people, especially out of state, are not doing enough of their own due diligence and relying solely on other people's opinions, paying way too much for hood properties and comparing the buy to what they could buy in their own backyard. 

As an out of state investor, consider spending a little more on the purchase price to be in better areas. Long term, you probably will be spending less if you consider turnover, vacancies, maintenance and your time/peace of mind.