[Calc Review] Help me analyze this deal in Milwaukee WI in 53207

[Abhay Sachar]

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[John Reynolds]

@Abhay Sachar, I agree with @Marcus Auerbach.  I would spend some time in the city, particularly the crime areas, before buying something in those areas.  I went to an event at that church at night a couple of years ago and didn't feel that bad.  Of course, I only walked two blocks.  I wouldn't want to be there all of the time, though.  This is a rough city.  There are some areas that I don't like driving through during the day and I've spent a lot of time working in the projects in other cities.  In fact, I live in the nicest part of the city and I won't park my car outside.  Cars are stolen almost daily and people are occasionally mugged in broad daylight at gunpoint.  Amazon packages are regularly stolen off of porches.  I also occasionally have random people come to my house trying to intimidate me into paying them to do odd jobs.  Again, I'm in the nice area where homes range in the $400k-$600k range.  I hate to think what's going on in the $30k neighborhoods.  We're in a tough spot currently.  We have an understaffed, underfunded and possibly undertrained police force.  We also have a political climate that is anti police, especially in the neighborhoods where they need the most police involvement.  This is one of the poorest cities in the country with an absolutely horrible public school system and high inner city unemployment.  We have a failing infrastructure and no money to fix it.  I see the bad areas getting worse before they ever get better.

I hope this doesn't sound like a political rant because I don't mean for it to be.  I'm just trying to give you my picture of the city.  I want to make you aware that when you decide to buy cheap properties in the worst parts of town, you are getting the worst of the worst of a struggling city.

Before Marcus kills me, I also want to say this is a great place to live (if you can deal with the weather).  My wife can be in her office downtown in less than ten minutes, I can get a reservation at the best restaurant in town the same day, and I can go from my couch to my seat at a Brewers game during rush hour in 25 minutes.  Private schools are cheap and are very good, for the most part.  We also have very good public universities.  Summer is one big beer fueled festival.  It's a cool, easy city.  Heck, even if you live in the suburbs, you are less than a 40 minute's drive from downtown.  You can be in downtown Chicago in 90 minutes by train.

Oh, and make extra sure your capex and maintenance numbers are solid.  I haven't seen a cheap property yet that was well maintained.  Someone sent me a wholesale "deal" last week on a $30k house that they would have had to pay me to take once I figured in basic renovations.  They also tend to be really old and full of lead.  Foundation issues are widespread due to faulty drainage and the cold winters.  Good contractors here aren't cheap and are hard to find.  Bad contractors aren't cheap and are slightly easier to come by.

Full disclosure.  I do not own investment property here, but I'm actively looking.  I also have only lived here for three years.