All Forum Posts by: Jacob K.

Hey @Samuel Nigbur, congrats on saving saving up the down payment! West Allis is a great area. I recently purchased my first house-hack duplex there and it’s been a great experience. Lots of developments and fun things happening in the area.

I’m am not extremely familiar with WHEDA loans, but I know many lenders have recently increased their requirements due to Covid. I’d recommended reaching out to your mortgage broker with that question. I’d also recommend shopping around and checking out what other lenders can offer you. You probably already know, small local banks will work with you most. Many investors I know work with places like Waukesha State Bank, Tri-city, etc.

Many of these high reserve requirements have been established due to recently economic instability. It’s also hard to get financing right now. No one wants to lend with all this uncertainty. That being said - it’s not impossible. I know a couple people closing on properties within the next couple weeks.

Good luck!

Hey @Jared Michalski! There are tons of good agents in our area! It's hard right now, but I suggest going to a few local meet ups and networking with anyone and everyone. Milwaukee has a great REI community. If you haven't already, I'd recommend joining ‘Brew City REI' on Facebook.

Before finding an agent, are you all ready to go on your end? Do you have a pre approval? Do you have defined criteria for your target investment property? Any agent worth their salt prefers to work with people who have done their research and knows what they want.

@Teresa Thomas

I’m looking for properties that are liveable with some value as opportunity (outdated kitchens and bathrooms, bad landscaping, gross old carpet). This way I have the option to fill the units right away and redo them in the future, or just go ahead and redo them right away if I have the time.

I want houses that have updated electrical, good roofs, solid piping, etc. I don’t currently have the knowledge, time, or funds to completely redo a house, but am working up to it. Starting with things I know how to do to create value.

@Teresa Thomas

I’m in Milwaukee, I’m investing in large duplexes in the west allis area. Also looking into Washington heights and some areas near Walkers point. I am self managing for now and have had no real issues. My current property is a house hack that I also Airbnb. Personally, I’ve had no need for property management and can’t see a reason for it until I have many more units or buy far away from where I’m living.

I worked in Walworth for about 1.5 years and drove through Elkhorn everyday. That whole area is blowing up with development. I don’t think you could go wrong there. Beloit is a similar story. I think they’re both great areas with a lot of potential!

Hey @Teresa Thomas! I’m in the Milwaukee area, not as familiar with the areas you’re looking in, but I know several people who have been very successful in the Beloit area and along the Wisconsin/Illinois border. Due to increased affordability of housing on the Wisconsin side, you can collect rents equivalent to the Illinois side with lower cost of ownership. I think it’s a great area!

I agree with the previous comment regarding management companies. If you have the time, self managing is the way to go when you're just getting started. Self managing my first property has been a comprehensive educational experience and is equipping me to be a more effective investor when I turn the keys over to a management company in the future. That being said, if you have a high income from work and are exploring REI as a means of diversifying, a management company may be the better way to go. Depending on the condition of property you buy and the type of tenants you house can really change how involved you or a property manager will need to be.

@Rick Michaels Hey Rick! Plus one to what @Marcus Auerbach said. He has taught me so much about the Milwaukee market and helped me purchase my first property last fall - a house hack in west allis.

I went to school on the east side and have spent the better part of the last 5 years around Milwaukee. If I had more capital, I would invest in the higher class suburbs around the edges of Milwaukee and near the lake. I really like the Tosa, Brookfield, New Berlin, Greenfield area for its good schools and safe neighborhoods. It’s a historically steady market and has good appreciation compared to other nearby areas.

Personally, I'm just getting started with REI and my focus has been to find a balance of cashflow and appreciation. I don't have much for funds so I'm looking for safe neighborhoods with low cost/sq ft houses that have some appreciation potential. My goal was to find a property that cashflows enough to be self sufficient, and also increase in value. West Allis ticked most of my boxes in this category. It's traditionally a working class area, but there is a lot of development going on as areas like Tosa and Bayview full up. I personally know half a dozen early 20s people who have purchased their first home in the area and am constantly seeing old run down dive bars being turned into trendy restaurants.

I also like the Washington Heights neighborhood too. Lots of big old duplex’s that are being fixed up.

That’s my perspective as a mid 20s in the area. Hope that helps! Feel free to reach out if you have any specific questions!

@Ron Neal I also agree the Brew City REI is a fantastic way to get involved! I am a relatively new investor myself and cannot count the number of times this group has helped me. They host a number of networking events and meet ups that I'd highly recommend checking out.

Depending where you are located, Smart Asset in Waukesha also hosts monthly meet ups. It’s a great place to have some pizza and meet with other local investors of different levels.

Where did you buy your duplex?

@Account Closed Thanks for the feedback! Not sure about the pipes in either, roofs are newer (all within 10 years), unsure about the asbestos, and the furnaces and water heaters are all within good shape. Good tips for things to look out for

@Courtney Richards Hey Courtney, my rent market numbers come from a few different sources. In the second deal, they are from my agent, who provided them when I asked what the units are currently rented at. For the first deal, the $900 is from my agent, the other is an estimate based on similar units near by on Craigslist and my own knowledge of the market.

Hey Zenas, Eau Claire is a beautiful area! Good luck and excited to hear about your experiences as well.