Known for delicious cheese and excellent breweries, Wisconsin has something else to add to its prestige: incredible investment opportunities for those looking to add to their real estate portfolio.
Short-term rental properties are hot here, as it's one of the most attractive destinations for big-city visitors from Chicago who would like to relax in its many cozy hamlets; however, it also has strong rental income potential from year-long residents. About a third of Wisconsin residents rent their homes, and monthly rental rates have risen almost 25% since 2021, representing serious potential income for prudent real estate investors.
If you'd like to join the thousands of entrepreneurs who are finding fortune in the green dales and hills of Wisconsin, DSCR loans are one of the best ways to do so - and Visio Lending is the best mortgage lender in the state. We make accessing financing for investment properties simple and streamlined with our easy application process, which requires far less paperwork than a traditional mortgage loan. Begin generating income faster than ever through DSCR loans in Wisconsin through Visio Lending.
Unlike traditional mortgage loans or bank statement loans, real estate investing with Wisconsin DSCR loans is a simple process that relies almost entirely on the property's potential income rather than your own financial history. This gives DSCR loans a much shorter timeline than the long, drawn-out application for other mortgage loans, which require an exhaustive investigation into the borrower's financial health.
As the loan purpose is strictly for an investment property, lenders require very little income information from borrowers: no tax returns, no pay stubs, or debt-to-income ratio calculations.
There are an abundance of property types that can be covered with a DSCR loan - many of which would not be eligible for conventional mortgage loans. Non-warrantable condos, multi-unit residential property, and commercial real estate are all eligible for DSCR loans.
As the loan purpose is solely for investment, you cannot use these loans to finance owner-occupied property or rural homes; however, nearly any type of investment property will qualify.
Better yet, you can roll more properties into a DSCR loan than with any other loan type: a conventional loan will only finance up to 10 units, but as long as your investments will cover the overall mortgage payment, you can purchase far more properties with a Wisconsin DSCR loan.
DSCR loans anywhere in Wisconsin are a wonderful idea, but these four markets are some of the hottest in the state, based on economic projections, variety of profitable property types, and potential rental income.
The capital of the state, Madison is known for its colorful, quirky vibe and its large population of college students. With the many tourists coming to bask in its beauty, both long-term rentals and short-term rentals do very well here.
As the average home price here is much higher than the state average - about $376,977 - accordingly, rental properties generate more income. The average rent is $1,622 across all residential properties. Both office and retail spaces average about $23.60 per square foot.
Vacations and staycations are a mainstay of the Madison economy, so it's no wonder that the average cost of a vacation rental is an incredible $300 per night, with some averaging even higher at $1,987 per night. An attractive, well-maintained home in a desirable location could make big money for a clever investor.
Famous for its breweries, Milwaukee also has many cultural attractions, including the Milwaukee Public Museum, Milwaukee Museum of Art, and the Warehouse Art Museum. It's also home to the Milwaukee Brewers, drawing in sports fanatics from around the Midwest.
Home values are much lower here than in Madison at about $195,566, but rents are only a little lower at $1,410, making it an excellent place to purchase investment property. Office and retail space rents are comparable to the capital at around $22.30 per square foot.
Kenosha is where weary travelers go to breathe fresh Midwestern air, making vacation rentals a great use of a DSCR loan: you can generate $348 per night on average. Home values sit squarely between Milwaukee and Madison at $232,810, but its rents are lower at $1,350 per month. Commercial space is cheaper at about $17.61 per square foot.
Home of the NFL team, the Packers, this town has emerged like a phoenix from its gritty industrial roots to become a peaceful and contemporary urban area. Home values are comparable to Kenosha at $235,138, but the cost of living is much lower: about 10% below the national average.
Part of this low cost of living is due to the fact that rents are quite low at $949 per month across all residential rental types. Commercial real estate is shockingly affordable, averaging only $12.70 per square foot. This signifies great growth potential for those who want to participate in this city's regeneration through small businesses and investments.
Check out some of Visio Lending's recently closed DSCR loans in Wisconsin.