Wednesday, May 10, 2017
This is my new house. It is in Milwaukee. I am not moving
This home has just been rehabbed. Here's the video. https://vimeo.com/200290702/6dffd05f79 The tenant has a year lease, and there is positive cash flow at the end of each month, even after paying the mortgage, taxes, etc. Perhaps most importantly, it is professionally managed by the same company that did the rehab. Management is key when an investor is so far away.
Yes, I did the research on the neighborhood (I researched several other similar properties as well, in Milwaukee and other cities). And, I researched the appreciation trend in Milwaukee -- the city r.e. is rising in value.
Why didn't I buy rental property in L.A.? Because it's too damn expensive. Other parts of the country are so much less expensive than other areas. Shockingly so. This home cost $112,000. That's not a typo.
Still, isn't this risky? Yes, but it depends on what your investment goals are. IMO, it is only slightly riskier than managed funds, and less risky than hiding money in a mattress. I intend to purchase more properties like this in the coming months. If you would like me to find a property like this for you -- with positive cash flow each month and increasing in value -- please don't hesitate to contact me.