Hello from Chicago
Hello,
I have been lurking on BP for a while. I think this is my first post.
I have some cash (let's start with $25k) I want to put to work (I currently have mostly paper assets/investments at the moment and want to diversify) in either rehab flips (to grow the cash) or rentals (to send me a check each month).
I have an excellent "theoretical" grip on REI thanks to a guru course, numerous books, friends who currently invest, and of course BP. I also bird-dogged and wholesaled with my brother in SoCal for about a year.
I have a full-time job that I love, so I'm not looking to take on REI as a full-time job. I understand there is no such thing as "passive" income, but I would intend to make any cashflows as passive as possible (PMs, GCs, etc).
I think now is a great time in the market to start building a long term rental portfolio and that's what I plan on doing.
Where I'm looking:
The FNMA properties with the Homepath financing (reno version or not) seem very attractive to me at the moment due to 15% down being offered on NOO's. I understand that they may be priced a touch higher than other REOs, but I think there are still some opportunities with the Homepath product. HML and conventional are still options although I have my reservations (HML; some are reporting 6-12 month seasoning for refi, Conventional; 25% down, property condition needs to be good).
Geographically speaking, I live and work in Chicago, but tend to share the view of people that say out of state investments can be profitable and not much more hassle than local (although not always).
My goals:
With this first $25k, I'd love to get $1000/mo cash flow going (who wouldn't!? that's about 50% ROI). Maybe that's a little too high, lets say $500/mo (could be possible).
I thank you all for all of the wisdom already on the boards, for your warm welcome, and for many years of community to come.
Scott