Milwaukee SFR Deal Analysis - Multi Family Comparison

[Tim A.]

Next week I am closing on a three bedroom one bath home in Milwaukee. Although I should have done this sooner, I would appreciate any feedback that you might have on this by and hold property. 

I am buying the house for 86k and the taxes are around $2400 a year. I posted the house on Craigslist already and had 40+ inquiries within the first 36 hours with an advertised rent of $1275. Tenants are responsible for lawn and snow so there won't be any costs associated with that. Outside of some minor cosmetic repairs it is pretty much a turn key home. 

Is this a deal that fits within your peramiters? In comparing the SFR cash flow to the numbers that I've briefly looked at for multi families, it doesn't seem like they are producing that much more. Is this an issue that others have seen in Milwaukee or am I just that ignorant/naive?

Thanks!

[Dawn Anastasi]

What neighborhood is it in?  And how many bedrooms?  That determines if $1275 is a good price or not.  If you have that many inquiries, you may want to consider a higher rent.

[Tim A.]

it's a three bedroom located close to Burleigh and 76th.  How many inquiries are typical when it is priced at going market rate? 

[Thomas S.]

With the number of inquiries you have received I suggest you raise the rent to eliminate half or more of the respondents.

The reason you are not seeing a great difference in cash flow between SFH and multi is because your expenses are not accurate. The expenses on a SFH are always going to be higher per tenant than on a multi.

[William S.]

@Tim A.

Sent you a PM. Hope the info helps!