Real Estate investors from across the country are flocking towards investment properties in Wisconsin to build rental portfolios. The Badger State is a current favorite of real estate investors due to many factors including a strong economy, affordable prices and stable rents! Easy Street Capital is proud to be a leading provider of investment property loans for real estate investors looking to build rental portfolios in Wisconsin!
Investment Property Loan Types
When it comes to real estate investing in Wisconsin, there are many markets and types of investment property loans to choose from. For investors that like to get their hands dirty, rehabbing run down properties, hard money renovation loans are a perfect choice! These loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a quick profit or pursue the BRRRR Strategy by renting it out and then refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are rent-ready and require no renovations. Move-in ready single family homes and fully furnished short term or medium term rentals are great for cash flow and price appreciation. Most DSCR Loans are fixed rate for thirty years, locking you into a fixed interest rate for the long-term. While, if historical patterns continue, rents and appreciation increase steadily each year. Bottom line, debt costs stay the same while cash flow increases!
One of the favorite metrics of real estate investors to spot profitable markets is the Rent-To-Income Ratio. The Rent-To-Income ratio measures a city’s average market rent against its median household income. The higher the Rent-To-Income ratio, the harder it is for renters to afford the prevailing rents in the city. Conversely, if the Rent-To-Income ratio of a market is lower than average, it means there is a large pool of potential renters for investment properties. Additionally, if the city is growing, it means that rents have room to increase significantly, meaning more cash flow and profits for landlords that lock in their debt payment costs for long-term periods by using DSCR Loans.
Where To Invest In Real Estate In Wisconsin
Wisconsin is a favorite market for real estate investment properties for many reasons. There are lots of varying markets that offer great potential for each type of real estate investor. Milwaukee, is the largest city in the state and fifth largest market in the Midwest. Madison is the second largest city and is the state capital and home to University of Wisconsin, the state’s flagship university. Green Bay and Kenosha are solid secondary markets with affordable options, especially for BRRRR Method investors. Finally, there are hidden gem markets great for short term rental and vacation rental investors such as Sheboygan, known as the “Spirit on The Lake.”
Milwaukee
Milwaukee is the largest city in the state of Wisconsin, with a population of over 590,000 people. The city has a diversified economy with a strong focus on manufacturing, healthcare, and education. It is home to several Fortune 500 companies, including Northwestern Mutual, ManpowerGroup, and Rockwell Automation. These major companies provide a solid employment base for renters. The city is also home to several world-class universities, including Marquette University and the University of Wisconsin-Milwaukee. These attract a large number of students and young professionals who need rental properties.
Milwaukee’s strong economy and diverse population make it an attractive market for real estate investors. The city’s growing job market and population growth create a steady demand for rental properties, with opportunities for long-term leases, medium-term rentals, and short-term rentals. The tourism industry is also thriving in Milwaukee. Top attractions include the Milwaukee Art Museum, Summerfest, and the Harley-Davidson Museum. The city’s lakefront location, brewery tours, and sports teams such as the Milwaukee Bucks and Milwaukee Brewers make it a popular destination for visitors. This provides a robust market for short-term rentals. Overall, Milwaukee’s strong economy and diverse attractions make it a great market for real estate investors looking to invest in single-family and multifamily properties.
Madison
Madison, Wisconsin is the capital city of Wisconsin and home to the University of Wisconsin, a world-renowned research institution with an enrollment of over 45,000 students. The city is also a vibrant cultural hub, with a thriving music scene, numerous museums, and a bustling downtown area. With a population of over 250,000 residents, Madison is the second largest city in Wisconsin.
Madison is a great market for real estate investors that specialize in student housing. The large student population provides a consistent demand for rental properties in close proximity to the university. Investors who focus on well-located properties and rent to reliable students can earn higher returns than with traditional long-term rentals.
In addition to student housing, Madison is a popular destination for short term rental investors. The city hosts a number of events throughout the year. These include the Wisconsin Film Festival, the Great Taste of the Midwest beer festival, and the Ironman Wisconsin triathlon. Additionally, the university’s strong athletic programs, including football, basketball, and hockey, draw in large crowds for game day weekends. These events provide a great opportunity for investors to capitalize on short-term rental demand and earn higher rental income.
Green Bay
Green Bay is located on the western shore of Lake Michigan. It has a population of over 100,000 and is the third-largest city in the state. The city has a diverse economy, with industries such as healthcare, manufacturing, and transportation playing key roles. Green Bay is also home to the Green Bay Packers, a professional football team with a massive following. This drives significant demand for short-term rental properties during the football season. Additionally, Green Bay boasts several cultural attractions, such as the Neville Public Museum of Brown County and the Meyer Theatre. Its a desirable destination for tourists throughout the year, not just football season!
Real estate investors can find affordable investment opportunities in Green Bay, with the median sales price for a single-family home in March 2024 at $238,500, according to Redfin. In addition, Zillow reports that the average market rent in Green Bay in May 2024 was $1,145 per month, making it a lucrative market for rental properties. Investors using rental loans can take advantage of low down payment options and earn substantial cash flow with potentially high cash-on-cash returns. Real estate investors can capitalize on this growing market and achieve strong returns on their investments.
Kenosha
Kenosha is a fast-growing city in southeast Wisconsin with a population of over 100,000. It has a diverse economy with a mix of manufacturing, healthcare, and education industries. The city also has a vibrant downtown area with a variety of shops, restaurants, and cultural attractions. These include the Kenosha Public Museum and the Civil War Museum. Real estate investors can benefit from both long-term and short-term rental demand. Events such as the Kenosha Classic Cruise-In and the Bristol Renaissance Faire drawing in visitors throughout the year.
Kenosha is part of the Milwaukee metropolitan statistical area, which has seen significant growth in recent years. With its strategic location between Chicago and Milwaukee, Kenosha is poised for continued growth. Kenosha offers a prime opportunity for investors looking to get in on the ground floor of an up-and-coming market.
Sheboygan
Located on the shores of Lake Michigan, Sheboygan is a charming city known for its beautiful lakefront, parks, and stunning architecture. Its downtown area is home to a thriving arts scene, with galleries, museums, and theaters. Sheboygan is also a popular destination for outdoor enthusiasts, with activities such as fishing, boating, and hiking in the nearby Kettle Moraine State Forest.
The unique blend of culture, natural beauty, and outdoor recreation makes Sheboygan an attractive location for short-term rental investors. Visitors come from neighboring cities, such as Milwaukee and Chicago, for weekend getaways and longer vacations. Rental rates remain steady throughout the year, with peak seasons during the summer months. Additionally, the city hosts various events, including the Sheboygan Greek Fest and the Brat Days Festival. These bring in even more visitors and potential rental income.
AirDNA, the leading data provider for investors in short term rentals, gives Sheboygan a Market Grade of B+, including a 98/100 on “investability”, making it one of the best places to invest in short term rental properties. Per AirDNA, investors can expect annual revenue of $39,400, an incredibly high amount when compared to the median sale price of a home of $228,950 as of March 2024! Investors that use DSCR loans from a forward-thinking lender like Easy Street Capital that qualifies the income of the property using AirDNA projections can likely rake in the cash flow
Ready to Get Started?
Ready to invest in real estate in Wisconsin? Easy Street Capital is Wisconsin’s best provider of investment property loans for both hard money rehabs and long-term rental properties.
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