Hello from Chicago

Hi! My name is Frank. I am a relatively new investor and I have been lurking on this forum for a few weeks.I must say that I am loving this site and the wealth of information available here. I have not been in the real estate investing game for some time now. I am looking to get back in head first. My plan is to focus on acquiring cash flowing properties to build equity over time. I have some equity to put into a property but not really enough to acquire a 6 unit or larger property(which typically seems to be the tipping point for cash flow). I am looking for ways to increase my downstroke on a mulitfamily property. I have been looking into acquiring some single family foreclosures in the meantime but I am not sure if I should fix and sell the property (which could result in some carrying costs in this slow market) or if I should buy fix and rent for roughly break even cash flow and wait out the market. My other option (which I am somewhat unfamiliar with) is to try and wholesale the properties for a quick buck. I am a little reluctant to jump into this because of my lack of knowlege.

I would love to hear all your thoughts on how best to proceed.

Edited: 06/26/2010 at 10:03AM

Rodolphe Brun

Real Estate Investor · Pittsburg, Pennsylvania

65 posts
198 Influence
2 Awards

Icon_minipost Oct 13 '09, 04:53 AM

Hello Frank,

Welcome to BP.
I will say, location, location, location.
Your investment can be great or can be a flop.
For rental you will find out that properties have a greater cash flow in the "not so good area", but with that come trouble, it is harder to find good tenant, and harder to get paid, so if you invest in this area you will have to be constantly on the top of it.
If you invest in a nicer neighborhood, it gets easier, however cash flow is not has good and sometimes it is hard to break even.
But for a resale point of view and for equity in the long term it is probably the best.
I think I will stay away from multiple unit. Single properties are probably the cheapest and safest investment right now, price are so low that it's hard to go wrong.
But then again it's all about your area.
Here in Vegas, despite the economy the market is crazy. people are overbidding on all REO properties.
If Chicago is like here, buy a few properties, cash if you can, rent them and wait a couple of years.

Edited: 06/26/2010 at 10:03AM

Frank S.

Real Estate Investor · Chicago, Illinois

4 posts
23 Influence

Icon_minipost Oct 13 '09, 10:59 PM

Thanks Rodolphe! I am hoping to find that balance. I have a fairly good feel for the local market and I looks like there are lots of good deals to be had. One thing that seems to be snagging me up right now is the lack of call backs from realtors on these REO listings. Any advise on how to get these people to respond? You would think they would be interested in making some money.

Edited: 06/26/2010 at 10:04AM

Ryan Steele

Real Estate Investor · Chicago, Illinois

957 posts
96 Influence
3 Awards

Icon_minipost Oct 23 '09, 04:54 AM

Frank,

I am also from Chicago. Been investing for many many years here. What areas are you focusing on?

Goalie- is that hockey or soccer?

Edited: 06/26/2010 at 10:13AM

Frank S.

Real Estate Investor · Chicago, Illinois

4 posts
23 Influence

Icon_minipost Oct 23 '09, 06:43 AM

Ryan, I am initially focusing close to home in the South, Southwest suburbs and NW Indiana. Once I can commit full time I will focus more on other areas.

The screen name really has to do with neither soccer or hockey. I couldn't think of a clever screen name so I figure I'd make one that reminds me to focus on my goals. Haha Oddly enough though goalie was what I always played in both those sports as a kid

Edited: 06/26/2010 at 10:13AM

Ryan Steele

Real Estate Investor · Chicago, Illinois

957 posts
96 Influence
3 Awards

Icon_minipost Oct 23 '09, 09:04 AM

I do a bunch of investing in those areas actually Frank. Solid areas all over to invest if done wisely.

Sorry for assuming it was sports related, but yeah Keeping Focus is good.

What type of investing are you doing?

Have you attending any of the local groups/clubs?

Edited: 06/26/2010 at 10:13AM

Frank S.

Real Estate Investor · Chicago, Illinois

4 posts
23 Influence

Icon_minipost Oct 26 '09, 01:06 AM

I am mostly looking for income properties at the moment. Also looking into some possible fixer-uppers and REOs that I can get rented or flip depending on the situation.

I have not been to any investor club meetings quite yet. I found two in the area. I'd like to check one out soon to see what they are about.

Edited: 06/26/2010 at 10:14AM