Relocation to Milwaukee looking for some Deal Analysis Advice!

[Joshua R.]

A lot has happened since my last post. I am not going to go into the details of the new circumstances, but long story short I now live in the Milwaukee area for work. It is very random how things happen but everything happens for a reason. Since being in the area and making my relocation known on BP I received a warm welcome and great advice getting started out here. (Big Shout Out to Sam Erickson). The plan is still the same. I want to own multiple 2-4plex (5 if possible on my loan) cash flowing properties. I plan on using an FHA loan amounting to $250,000 and residing on the property for the first year and reinvesting profits back into the property to improve the units. I would like the property to be in a safe area since I will need to reside there for at least a year. I am looking to have at minimum $200 in cash flow per door. Here are a few properties I am looking at and would like to gain some feedback on these particular deals. (I will use real Zip Codes with fake addresses). Any advice on the Zip Codes and analysis would be greatly appreciated.

Property #1

123 Main St, Milwaukee, WI 53215

Ask Price: $99,000

4 plex:

Net Rent Income is $1800

Owner Vacancy: -25%

Mortgage Payment: $437/month

Property Tax: $165/month

Insurance: $83/month

PMI: $67/month

Maintenance and repair Savings: $200/month

Utilities: $250/month

Year 1 Cashflow: $148/month, $1,776 annual

Year 2 (Once Fully Occupied) Cashflow: $598/month, $6252.60 annual

Property #2

2244 W Newhouse Ave, Milwaukee, WI 53215

Ask Price: $125,000

4 Plex

Net Rent Income: $2265

Owner Vacancy: -25%

Mortgage Payment: $552

Property Tax: $208/month

Insurance: $104/month

PMI: $84/month

Maintenance and repair Savings: $200/month

Utilities: $250/month

Year 1 Cashflow: $300/month, $3609 annual

Year 2 (Once Fully Occupied) Cashflow: $867/month, $9,284 annual

Property #3

444 N 123 St, Milwaukee, WI, 53208

Ask Price: $134,900

5 Plex

Net Rent Income: $2450

Owner Vacancy: -20%

Mortgage Payment: $596

Property Tax: $225/month

Insurance: $112/month

PMI: $91/month

Maintenance and repair Savings: $200/month

Utilities: $250/month

Year 1 Cashflow: $486/month, $5832 annual

Year 2 (Once Fully Occupied) Cashflow: $976/month, $10,396 annual

Property #4

5454 N 23 St, Milwaukee, WI, 53208

Ask Price: $59,900

3 Plex

Net Rent Income: $1800

Owner Vacancy: -20%

Mortgage Payment: $294/month

Property Tax: $100/month

Insurance: $50/month

PMI: $40/month

Maintenance and repair Savings: $200/month

Utilities: $250/month

Year 1 Cashflow: $302/month, $3624 annual

Year 2 (Once Fully Occupied) Cashflow: $896/month, $10,011 annual

Please provide any feed back to the Analysis and any advice on the Zip Codes that you may have. I really appreciate all the help and input as always!

[Darren Budahn]

Dan and Dave are definitely spot on in their assessment of 53208 as Washington Heights and west of Washington Park and certainly into Tosa would be very nice areas to owner occupy.  I forgot 53208 extended into those neighborhoods. 

However, after a quick search of 53208 multi-families that are currently active on the MLS, nothing is currently on there in the more desirable neighbhorhoods that Dan and Dave outlined. Good luck in your search.