Rental Property Investor · Nashville, TN · Member since 2019 · 24 posts · 17 votes
Hello!
I am a remote investor and am building my portfolio in Milwaukee. I am closing on a single family home in a couple of weeks and want to add either high cash flow single family homes or multifamily homes in the next couple of months. I'm open to BRRRR or turnkey - whatever makes the most financial sense.
I’d love to connect with fellow investors and folks who have experience investing in Milwaukee. If you’re in the Nashville area, I’ll buy you a beer or coffee and would love to pick your brain.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
6y
@David Miller Milwaukee is a very muliti faceted market witch a wide variety of neighborhoods and price points. For some context, I have been buying for more than 10 years, mostly SF, and initially in different areas, the last 6 or so years only in the suburbs. Fortunatly we never got on the Airbnb train, I remember too well what the last recession did to travel and tourism - I have seen it live in Vegas, empty casinos, 17,000 construction workers on the Aria City Center job sent home mid project. If money get's tight, travel is the first thing to cancel.
Milwaukee has experienced strong appreciation as well, about 8% in 2019, at the moment a bit more due to the covid inventory squeeze. Median home prices are approaching 200k. You can watch a monthly Milwaukee market update video here, the June issue will be online in a few days.
About your plans for Milwaukee. Aside of the sociodemographic and crime issues the problem you have with lower end properties is that after a few years you find out that capex exceeds cash flow. So you definitley want to account for that and have at least a rough capex schedule for however long you are planning on holding the property. Go through the main components: mechanicals, roof, driveway, plumbing, etc..
Rental Property Investor · Nashville, TN · Member since 2019 · 24 posts · 17 votes
6y
@Marcus Auerbach - the entry level price for homes in Nashville are climbing rapidly and though that's great for appreciation, I'm looking at lower price points (i.e. - the single family home I'm closing on is 70K and I'll be cashflowing $350/mo). In Nashville, the price / rent ratio isn't as favorable as what I've found in Milwaukee so far. The other school of thought among Nashville investors is buying properties and Airbnb-ing them, but with COVID, that has come to a screeching halt and I'm not too confident in getting into that game until this clears up for good. I could be wrong, but that's what I've found.
@Demetrius Lindsey Hey Demetrius, nice to e-meet you! The property I'm closing on is in N Milwaukee, but am still trying to further learn the market. I'm working with my property manager team on this and should have more insight into this in the coming weeks and would be happy to share what I learn after our conversations!
Real Estate Agent · Milwaukee, WI · Member since 2018 · 50 posts · 45 votes
6y
Hi @David Miller - congrats on closing in on your SFH! Have you come up to MKE to drive the different sub markets? It's quite diverse here and will take a while to get a handle on, and seeing where you're investing will help tremendously. I invest, manage, and sell throughout SE WI and would be happy to chat about the market and areas. Best of luck!
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
6y
@David Miller Milwaukee is a very muliti faceted market witch a wide variety of neighborhoods and price points. For some context, I have been buying for more than 10 years, mostly SF, and initially in different areas, the last 6 or so years only in the suburbs. Fortunatly we never got on the Airbnb train, I remember too well what the last recession did to travel and tourism - I have seen it live in Vegas, empty casinos, 17,000 construction workers on the Aria City Center job sent home mid project. If money get's tight, travel is the first thing to cancel.
Milwaukee has experienced strong appreciation as well, about 8% in 2019, at the moment a bit more due to the covid inventory squeeze. Median home prices are approaching 200k. You can watch a monthly Milwaukee market update video here, the June issue will be online in a few days.
About your plans for Milwaukee. Aside of the sociodemographic and crime issues the problem you have with lower end properties is that after a few years you find out that capex exceeds cash flow. So you definitley want to account for that and have at least a rough capex schedule for however long you are planning on holding the property. Go through the main components: mechanicals, roof, driveway, plumbing, etc..
Rental Property Investor · Nashville, TN · Member since 2019 · 24 posts · 17 votes
6y
@Matthew Meunier - thanks! I haven't yet. I'm planning on coming up either later this fall or maybe early spring, but it's definitely on my to-do list. I appreciate you letting me know! I'll reach out to you when I need help.
@Marcus Auerbach - I appreciate the insight into the market. Just from talking to my PM, she keeps reiterating how it's multifaceted. Also, I appreciate the insight on the capex issue - that's very helpful and I'll be planning accordingly with that. Thank you for your input!