All Forum Posts by: Jeff Meitler

@Jack Medford Really interesting that you mention that. The cash flow today would make the investments pretty safe, but I wonder if those cities are primed to appreciate at some point as a place like Madison continues to grow, similar to Naperville or Wheaton outside of Chicago? Another way of putting it: how far from Madison do I need to go to see positive cash flow AND and potential appreciation long-term as Madison grows?

@Jack Medford How much better is cash flow in Milwaukee than a place like Madison? Interested to hear your thoughts before I make investment #2

http://www.bayflip.com/#events-section

@bobbysharma puts on really good events around the Bay. Definitely go to one or two of those, or the ones on MeetUp, before creating another! 

 I agree! The appreciation and development in Bay View is very encouraging, so Cudahy feels like a logical next step. As a millennial, if I were to move back to the Midwest today, proximity to airport, downtown, lake, and a slightly quicker drive to Chicago all sound attractive. 

I’m not actually sure how I’ll handle the loan long-term— at the moment the terms are favorable and better than the bank can give me. What kinds of strategies have you seen successful investors employ in regards to private loans?

 Looking to take it one at a time for now. The advantage of out of state investing is that I don’t have to rush and can wait for a stellar deal! So if you find any, please let me know:) My prop manager has been great so far (it’s early) but happy to share more via PM! 

 I’ve mentioned the rent to price ratios to a few of me RE counterparts out here and watch their jaws drop. On the other hand, I don’t expect nearly the same appreciation as the coasts, Austin, Boulder, etc. While Milwaukee appears to be developing, and Foxconn seems like a nice local win, the Google/Amazon/Facebook/Salesforce midwestern offices are in places like Indianapolis and Chicago, not Milwaukee. To me, this is the primary reason coastal RE investors aren’t choosing Milwaukee. To a Bay Area investor who wants to go out of state, for example, Madison would seem like a more attractive option as it already has companies poised to win in the future and 10k well educated graduates/yr from UW boosting the local economy. 

My point being that it is easier to be wrong about an investment in Milwaukee than it is in a “tech city”, and that causes a lot of out of state investors to hesitate. Would you agree?

 Hi Michael! I closed on the deal earlier this month. Would be happy to give more details over PM if you are interested. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Cudahy.

Small duplex in Cudahy. Bought it because the rent to purchase ratio was fantastic, it didn't much work, and was in a safe area with many bus lines and easy access to Milwaukee amenities.

What made you interested in investing in this type of deal?

Milwaukee is undervalued, rent to price ratios are fantastic, and the location was great.

How did you find this deal and how did you negotiate it?

Used a fantastic agent/property manager

How did you finance this deal?

Private Loan

How did you add value to the deal?

TBD

What was the outcome?

TBD