Newbie Landlord in Illinois

I have spent some time reviewing and learning to navigate this site. I think it is awesome and really appreciate the points of view and valuable insights. I look forward to learning and helping out where I can as well.

Since I will be retiring from the Navy within the next 2-3 years my wife and I have purchased 2 duplexes and a 4 unit building. It is our intent to move to the city where they are located upon my retirement. Until then we will look for more rental properties and may attempt a flip in the near future.

I look forward to spending time learning here.

Regards,
Bill

Edited: 06/26/2010 at 04:58AM

Grand Wally

Real Estate Investor · Louisville, Kentucky

159 posts
1 award
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Apr 02 '08, 12:13 AM

Bill:

First, thanks for your service. You are brave for actually " walking the walk" in the service while the rest of us just complain about the state of the world....

Secondly, great move. I have known of people who retire from the service and supplement their income using REI just fine and it works out for them very well...not to mention the favorable VA loans you would presumably be able to get as a veteran.

Also, my best friend (and best man at my wedding) is a broker in Marengo...about 30 mins from Hoffman Estates. Would love to give you his info to help in transitioning (financially at least) from the Navy to civilian life. Let me know if you want his info...thanks!

Edited: 06/26/2010 at 04:58AM

Ryan Steele

Real Estate Investor · Chicago, Illinois

957 posts
3 awards
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Apr 02 '08, 12:38 AM

Bill,

Congrats on your pending retirement. Is Hoffman Estates where you live currently or where you own property? I think the only Naval station nearby is Great Lakes, so that would be a long commute.

My wife grew up in Hoffman Estates and my in-laws still live there. I get out that way a bunch.

Welcome to the forums, I look forward to hearing some of your tales not only of your service but also of being a landlord!

:welcome:

Edited: 06/26/2010 at 04:58AM

Bill Phinney

Real Estate Investor · Sparland, Illinois

8 posts
1 award
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Apr 02 '08, 03:37 AM

Ryan and Grandwally,

Thanks for the warm welcome. We currently live in Hoffman Estates and will sell the condo there upon my retirement. We completely remodled the kitchen and installed all stainless appliances. Saved a lot of money at the Sears scratch and dent on those! I do commute from Hoffman Estates to Great Lakes (43 miles) and look forward to that ending upon my retirement. The 2 duplexes and 4 unit building are near Ottawa, IL. (120 SW of Hoffman Estates) and is where we will move at retirement. If I am able to negotiate orders to Navy recruiting in Peru, IL. I will consider staying for 23-24 years vice 20 since I would be able to easily do the recruiting job and network the area for 3-4 years prior to retirement. If not we still feel that we are ready for me to retire at 20 years. Ideally I would like to continue to purchase the right properties in that local area to continue to increase rental income. I have looked for REI clubs in the area around Peru, IL. and have had no luck so far, most I find are in the Chicago area or near suburbs. My wife and I make a pretty good team in my humble opinion. I do all the wheeling & dealing ( I'm pretty good at getting discounts), and all repair/improvement work needed, and she keeps very meticulous books and does tenant screening.

My immediate goals are to:
- Continue purchasing at least 1 buy and hold property per year.
- Educate myself on the tax lien process and attend a few auctions.
- Keep my eyes open for my first real " flip" . Free time is the major roadblock right now, but I am chomping at the bit to get right into it at retirement. In the meantime I read the stories and lessons learned here.
- Educate myself on the features & benefits of LLC's (This has me very confused). We currently have an umbrella policy covering all of our properties, including our residence and I'm not sure if that is the correct approach.

Regards,
Bill

Edited: 06/26/2010 at 04:58AM

Ryan Steele

Real Estate Investor · Chicago, Illinois

957 posts
3 awards
50 influence

Apr 02 '08, 03:47 AM

Yeah, a local club to PERU will be hard. I know there are ones that are in Peoria, but most are in the burbs of Chicago. I got to many of the clubs to network myself.

I know our meeting is tomororow night. Heck if you drive 43 miles to work each day, I am sure a drive like that once a month will be nothing for you. We have members that invest regularly in southern and central IL, let alone nationwide in larger projects.

As to the Tax Lien process, I did those for a while, just a really slow road on getting a return on investment. The way I learned was to go to a small county, in this case I did BOONE, and talked to the ladies in the office and really understood their process. They were nice and took the time to explain it all to me. This was many a year ago so who knows if the same ladies are there.

Again congrats on the retirment. I hope you are able to find a nice place in Ottawa!

Maybe we will see you tomorrow night at the meeting!

Edited: 06/26/2010 at 04:58AM

Calixto Urdiales

Residential Real Estate Agent · Los Angeles, California

1,466 posts
4 awards
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Apr 02 '08, 12:19 PM

Hello there Bill-

Sorry for the late welcome but heres to you man and thanks for defending our country!

[size=24]Welcome to BiggerPockets![/size]

Edited: 06/26/2010 at 04:58AM