All Forum Posts by: Brian Formulak

@Erin Garcia I have not invested in Milwaukee, but can offer insight into Indiana. I would invest in Indiana over Chicago for a couple of reasons. Since you are looking for an investment property for cash flow, you need to minimize your fixed costs and one of your major fixed costs is property taxes. The property taxes in Indiana are very advantageous for investors, while the Chicago property taxes will crush your net cash flow - which is what your main focus needs to be. In addition, the laws in Indiana favor landlords and the Illinois laws do not. This is important because you need protection against tenants that do not pay rent.

If you have any additional questions about the different Indiana markets or the differences vs. Chicago, feel free to PM.

@Victoria Stokes I always invest in my buy and holds solely on cap rates. My portfolio has averaged ~12% caps over the past 5+ years, and I have seen that consistency throughout my career. I would never invest based on appreciation because there are so many factors out of your control. Rental properties are meant for consistent and stable cashflow returns that can provide income throughout any market cycle, and should complement other investments such as a stock portfolio that will fluctuate much more through different market conditions.

Any appreciation is a bonus, but focus on driving cashflow from day one, and you will set yourself up for success over the long run.

@Lance Robinson I appreciate the insight into your portfolio. It is always interesting to compare your investments to another in the same market. I hold properties in Indianapolis, Kokomo, Anderson, and South Bend. These properties in Indiana have been pretty good to me averaging about 12% cap rates a year, just going back the last 4 years. 

Hello – I have been investing in Indianapolis real estate for the last 25 years owning and managing multiple rental properties for my personal portfolio so I am not new to real estate. However, I am new to Bigger Pockets and I joined in order to network and learn from others, offer advice to new investors, and to participate in the real estate community as I am looking to grow my portfolio of properties. I am a lifelong entrepreneur and have owned and operated multiple franchises and a couple of other businesses throughout Indiana, so I can also offer advice to entrepreneurs who are looking for insight as they are starting their own business. 

Let me know if you would like to connect, if you are seeking advice, offering advice, or if you would like to discuss a business relationship.

Thanks,

Brian