With approximately 586 flips over the last 12 months, the Wisconsin property market is clearly welcoming to property investors. Milwaukee is where most of the action occurs, but Madison, Green Bay and Kenosha all see their fair share of flips as well.
All in all, the Badger State meets all the requirements for first time flippers to investigate the market further. The cost of homes isn’t too high, the revenue per flip is very respectable, and there is enough activity to know that other investors are flipping houses in Wisconsin successfully. Now let’s take a more detailed look at how to get started.
Wisconsin House Flipping Stats
Median Purchase Price
$123,650
Median Resale Price
$201,250
Average Revenue
$77,610
Price Per Square Foot
$139
Population Size In Wisconsin
5,822,434
Median Household Income
$59,209
High School Graduation
91,9%
Travel Time To Work
22 Mins
Best Cities for Flipping Houses In Wisconsin
- Milwaukee
- Madison
- Green Bay
- Kenosha
- Racine
Safest Areas In Wisconsin
- New Berlin – Safety Score: 89.32
- Menomonee Falls – Safety Score: 87.68
- Fitchburg – Safety Score: 85.13
- Waukesha – Safety Score: 85.03
- Appleton – Safety Score: 82.83
Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.
The Basics Of Flipping Houses In Wisconsin
- Find a property in Wisconsin that is undervalued
- Source funding from a reputable hard money lender in Wisconsin
- Buy the property for a price that makes it possible to generate profit when it is resold
- Complete renovations that will increase the after repair value
- Find buyers for the property and sell it for a healthy profit margin
How To Find Houses To Flip In Wisconsin
1. Use FlipScout By New Silver
- Free to use
- Works for flips and rentals
- Get alerts to your inbox
- Calculates rehab costs automatically
- See ROI and rental income instantly
- Aggregate results from various sources
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in Wisconsin.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in Wisconsin, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.
Wisconsin Housing Market Analysis
House Flippers Are Selecting Mid To Low End Houses with Potential: The median home value in Wisconsin ($211,086) is considerably more than the median purchase price for house flips ($123,650). However, the average resale price is $201,250, with average gross profit of $77,610. This indicates that house flippers are finding poorly maintained houses in good areas, and then completing high ROI renovations to boost the final resale value.
The Revenue Per Flip Is Higher Than National Average: The average revenue per flip in the US is just over $60,000. In Wisconsin, the revenue per flip hovers around $77,610. This suggests that there is potential for a highly profitable flip, provided you stick to your renovation budget
Home Values Have Increased By 8.8%: According to Zillow, home values in Wisconsin appreciated by 8.8% over the last year. This may be in response to long term impact of coronavirus on the US real estate market. In essence, demand is high while supply is low, and US interests are still very low by historical standards. This could make it difficult to find a seller that is willing to sell their house and meets all your criteria for a profitable flip.
Homes In Wisconsin Are Reasonably Affordable: The median home value in Wisconsin is $211,086. This is $55,136 less than the median home value in the United States, which is approximately $266,222.
The lower cost of homes in Wisconsin makes the market more accessible than other states. You will need less capital to purchase your target property, which usually means a smaller deposit and less demanding credit score requirements.
Apply For An Investment Property Loan
If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.
Next Steps
If you’re committed to flipping houses in Wisconsin, the next step is to invest time and energy into finding the best possible property. We have outlined a number of methods in this post, and all of them can potentially bear fruit.
Once you have identified a property, using a reputable Hard Money lender like New Silver can help accelerate the house flipping process. Our company is built on speed, efficiency and user-friendly technology. The online application can be completed in less than 10 minutes, and we offer instant proof of funds letters to all of our clients.
Property Flipping Resources
Hard Money Loan Calculator: Analyze the costs of your next flip in detail with our hard money calculator.
ARV Calculator: Workout the After Repair Value of the property that you are hoping to flip.