Investing in real estate can be a smart decision to build wealth and generate passive income. However, investing in Milwaukee real estate when you live out of state can be a daunting task. You may not be familiar with the local market, laws, and regulations. In this guide, we will discuss ten things buyers should look for when investing in Milwaukee real estate while living out of state. Additionally, we will explain how the professional real estate buyers at Northwoods Property Resources can help.
1. Research the Local Market
Investing out of state requires in-depth research, especially in a diverse market like Milwaukee. Milwaukee neighborhoods vary significantly, with some areas like Bay View and Walker’s Point drawing younger, working professionals, while others, such as Sherman Park, offer more affordable family-oriented housing. Neighborhoods such as East Town and Brewer’s Hill have seen a surge in property values, which is important for investors looking at appreciation potential.
Additionally, it is important to familiarize yourself with current market data specific to Milwaukee, including the local laws and regulations regarding real estate ownership and investment. For instance, in recent years, Milwaukee has experienced an average annual property value increase of about 8%, but certain pockets, such as Riverwest, have seen even higher growth rates due to their appeal to young renters and urban professionals. Reviewing up-to-date market insights, trends, and rental yields from local experts can help you identify the right areas that align with your investment goals.
2. Choose the Right Location
Location is key in any investment, and Milwaukee is no exception, with each neighborhood offering a distinct profile and investment potential. For instance, Bay View has grown into a trendy neighborhood popular with young professionals due to its vibrant arts scene and proximity to Lake Michigan. This area often commands higher rents and has shown steady property value appreciation. On the other hand, if you’re looking for a more budget-friendly option with potential for growth, Sherman Park offers a solid rental market and affordable entry costs, particularly appealing to families seeking accessible, single-family homes.
Milwaukee’s downtown neighborhoods, like East Town and the Historic Third Ward, are ideal for those interested in luxury rentals. Properties here are in high demand among working professionals and university students, and they benefit from proximity to major employers and Marquette University. Balancing your investment goals with Milwaukee’s local neighborhood characteristics will help you make a location choice that aligns with both your financial targets and Milwaukee’s unique real estate opportunities.
3. Hire a Local Real Estate Agent
A local real estate agent can be a valuable resource when investing in Milwaukee real estate. They can provide you with market insights and local knowledge and assist you with the buying process.
4. Understand the Local Laws and Regulations
Navigating local laws and regulations is critical, especially when investing in Milwaukee. Wisconsin’s landlord-tenant laws are generally favorable to property owners, but Milwaukee has additional requirements that investors should be aware of. For instance, Milwaukee’s lead-safe housing programs are important to understand, particularly if you’re investing in older properties commonly found in neighborhoods like Washington Heights and Riverwest. There are also specific rental licensing requirements in some Milwaukee areas, which are intended to ensure rental properties meet safety standards.
Additionally, Milwaukee’s eviction process and property tax rates vary by area. It’s beneficial to consult with a Milwaukee-based real estate attorney or an experienced property manager to stay compliant with local regulations, avoid unexpected fines, and ensure you’re following best practices for rental properties in this city.
5. Analyze the Return on Investment (ROI)
ROI is a critical factor when investing in real estate. You should analyze the potential ROI of the property before making a purchase.
6. Check the Property’s Condition
Before purchasing a property, you should get it inspected by a professional to identify any potential issues or repairs that may be necessary.
7. Check the Property’s Rental History
If you intend to rent out the property, you should check its rental history to ensure that it has a good rental income track record.
8. Consider Property Management Services
Managing an out-of-state property, especially in a market as varied as Milwaukee’s, comes with its own set of challenges. Partnering with a reputable local property management company can alleviate many of these. Local property managers are familiar with Milwaukee-specific tenant expectations, city codes, and seasonal factors that might affect your property. For instance, Milwaukee winters can be harsh, so working with a manager who understands winterizing properties and managing heating maintenance requests is invaluable.
In addition, a good Milwaukee-based property manager can oversee tenant communication, conduct regular inspections, and quickly address any maintenance needs. Some recommended Milwaukee property management firms include XYZ Property Management and ABC Residential Services, known for their focus on serving out-of-state investors with transparent, reliable service. This can offer peace of mind and reduce the risk of prolonged vacancies or emergency issues going unaddressed.
9. Have a Long-Term Plan
Investing in real estate is a long-term investment. You should have a long-term plan for the property, such as whether to sell it or hold onto it for rental income.
10. Work with a Professional Real Estate Buyer
Working with a professional real estate buyer, such as the team at Northwoods Property Resources, can help you navigate the process of investing in Milwaukee real estate when you live out of state. They can provide you with market insights, local knowledge, and assist you with the buying process.
At Northwoods Property Resources, we understand the challenges of investing in Milwaukee real estate when you live out of state. That’s why we offer various services to assist you in your investment journey. Here’s how we can help:
1. Market Insights: We can provide you with market insights and trends in Milwaukee real estate to help you make informed decisions.
2. Local Knowledge: Our team of professional real estate buyers has in-depth knowledge of the local market and can assist you in finding the right property that fits your investment goals.
3. Property Inspection: We can inspect the property on your behalf to identify any potential issues or repairs that may be necessary.
4. Property Management: We can connect you with trusted property management companies to handle the day-to-day operations of the property.
5. Negotiation: We can assist you with the negotiation process to ensure that you get the best possible deal on the property.
Investing in Milwaukee real estate when you live out of state can be challenging. However, with the right information and assistance, it can be a smart decision to build long-term wealth and generate passive income. By following the ten things buyers should look for and working with a professional real estate buyer at Northwoods Property Resources, you can make informed decisions and achieve your investment goals. Contact us today to learn more about how we can assist you in your investment journey. (920) 851-9727