All Forum Posts by: Donald D Michna

@Gregory Geddes Wauwatosa sounds like a good area for you if you are looking northwest of the city. There is also the option of Elm Grove or Brookfield, the area is more expensive but deals can be found. I do not know the areas as well, but I hear good things about the Monomonee Falls and River West. I myself am looking at the growth of the Harbor View and Walkers Point area. Bayview is also nice, but everyone is looking for opportunities here. These last 3 areas sound like the opposite direction of what you are looking for, but I thought I would include these. 

@Gregory Geddes I know you said that you would like to stay in the Shorewood area, but Milwaukee has many neighborhoods that are growing and have more potential for appreciation. Not by any means am I saying to purchase a house and bank on the appreciation. When first starting out, it may be better to diversify by investing in several 100-200k properties instead of 200k to million dollar properties in the Shorewood area.  This will also help to build momentum in your investing. When you invest in a more expensive product, there are typically less people that are able to qualify to rent the units, which can cause a higher rate of vacancy, thus killing cash flow. On the other end, some people specialize in higher quality rentals and do very well. It is very much a niche sector and takes time to develope into this type of investor.  Good luck on your future investments!

@Alexander Felice  & @Kerry Baird Great insights!

@Account Closed the property you described seems to be in a not so great area. I know of people investing in areas where you can purchase $24k properties that cash flow $1,200. It will be hard to find a good property manager that will manage this property efficiently. Milwaukee is like every city it has its good and its bad neighborhoods. The local economy is thriving, many large companies including Foxconn, Amazon and Komatsu are investing in new facilities. The amount of multifamily housing going up has not been seen in many years. It is not hard to find good multifamily both large and small. I would advise that you stay away from $20k properties unless it is a true deal in a decent neighborhood. I think Milwaukee has great potential for any investors that are interested in pursuing real estate!

I am from the Racine area, live in the Milwaukee area and work in the 3rd ward, which is near the downtown area and has developed a lot in the past 10 years. Milwaukee is a great place to invest with lots of opportunities. 

Some of the best neighborhoods I see that are developing include Harborview, 5th Ward, West Allis, The Village of West Milwaukee, Greenfield, Riverwest and Greendale areas. Areas that are hot include Downtown, Bayview, Brookfield, Wauwatosa, the Lower Eastside to the Upper Eastside as well as north of UWM. I am probably missing a few neighborhoods in this list but it’s a good starting point. I would also reference the Trulia crime map as it is a good indicator for the most part. 

With all the new business from large to small they are helping to develope the Milwaukee area. Yes, Milwaukee is a segregated city and has had tensions for decades, but it is like any large city, each neighborhood needs to be looked at to see where the development is occurring and where it will be going in the future. If you are able to invest in one of the up and coming areas with a cash flowing property it will definitely appreciate  from what I am seeing in the growth of southeastern Wisconsin. 

Garett, southeastern Wisconsin has a lot going for it with all the new development. I know many people think that we are close to the top of the market but their are quite a few major companies relocating to the area with tons of opportunities. There are a few REI groups in the area including Brew City Real Estate Investing. Maybe attend a few meet-ups, they are free and I hear that it is a really friendly environment. You could find people to talk to or even a deal in the area. I myself believe it is always best to invest close to home when starting out, but you may know some people in New York that can help you manage the property. Wish you all the best on your investing opportunities!

@Shawn Ackerman thanks for dropping my name. I work for a larger construction / development company as a senior project engineer that performs work throughout the US. We work on commercial, healthcare, industrial, mixed-use and multifamily construction. I also do my own repairs on my rentals.

@Shawn Ackerman, I did not pick up the property due to the location. I would like to keep in touch with you in the future. I will persist!

Lucas, 

I am investing with my IRA so I will have to use a property manager anyway. I know that investing with an IRA is a whole other discussion that can occur and have done a good amount of background on the details. That is besides the point though, why would I have to rent to low income or section 8? I see plenty of properties for rent in the area for market rates.

I didn't mention, it is a single family and has 1,100 sqft

I have a house in an off market deal in the Milwaukee area that i am looking at, the property is located in the 53206 area code. I wanted to see what others thought about the numbers. The seller is looking for $15k, he says that may rent for $700 (I’m thinking more like $650 at the most). It has 3 bedrooms and 1 bath with a half bath in the basement. All mechanicals look to be in decent shape, roof is good, newer vinyl siding, recently replaced windows, all appliances will need to be replaced, the entire inside of the house will need paint, flooring will need to be replaced, I estimate 10k in repairs. The seller is also willing to provide seller financing, he is offering 10% with $3k down, monthly payment of $159. Know the area and understand that it is not the best area. I also see quite a bit of investors looking at houses in this area. I think the price for this area is a bit high. Please let me know your input.