Why We Focus on Small Multifamily in Wisconsin
The case for duplexes and small apartment buildings in stable Midwestern markets — and why we think this is the best risk-adjusted strategy for long-term wealth building.
Small multifamily properties — duplexes, triplexes, and fourplexes — occupy a sweet spot in real estate investing that most institutional investors overlook.
The Sweet Spot
Large apartment complexes (50+ units) attract institutional capital, driving prices up and cap rates down. Single-family rentals have become hyper-competitive with Wall Street buyers. But the 2-20 unit segment? That's still dominated by local operators who know their markets.
Why Wisconsin
Wisconsin offers what we look for in a market: stable population, diversified employment base, affordable price points, and landlord-reasonable regulations. Cities like Milwaukee, Madison, and Green Bay provide consistent rental demand without the volatility of coastal markets.
Our Numbers
We target properties that meet strict criteria: - Cap rate above 6% at purchase - DSCR above 1.2 with current financing - Rent-to-price ratio above 1% monthly
These aren't aspirational — they're minimums. We pass on any deal that doesn't clear them, regardless of how good the story sounds.
The Compounding Effect
When you buy right and operate well, small multifamily compounds quietly. Rents grow with the market. Mortgage principal pays down. Operating expenses stay manageable because the buildings are simple. And because we maintain our properties well, tenant turnover stays low — which is the single biggest cost killer in property management.
The boring path is the profitable path.