Newbie needs help with starting point in Chicago

6 Replies

I'm a newbie that's in the learning and networking phase. I'm aiming to start looking for my first property next year and want to get some feedback on how feasible/realistic my strategy is. I plan on doing a house hack on a multi-family building (triplex or quad) in the Chicago area (northside, near west or near south) and I have $50k set aside for this with ability to borrow another $10k from an insurance policy. 

What do you guys think? Any suggestions, tips, or alternate ideas are much appreciated.

@Daniel L.

Welcome. 

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers).

Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

Consider checking out HUD homes for small multi's owner occupied gets first crack.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good Luck

Paul 

Originally posted by @Daniel L. :

 I plan on doing a house hack on a multi-family building (triplex or quad) in the Chicago area (northside, near west or near south) and I have $50k set aside for this with ability to borrow another $10k from an insurance policy. 

This is a very realistic strategy. It is how I started and a lot of people I know started. After you hold back money on reserves you could buy a $200k place with conventional or a $800k place with FHA - pretty big difference. I would suggest speaking with a lender and seeing what you can get approved for and then talk about the pros and cons with different financing. That will give you a starting point. Once you have that you will have a better idea of what areas to start looking in because some have pretty high points of entry.

Brie Schmidt, Real Estate Agent in Illinois (#471.018287) and Wisconsin (#57846-90)

Like @Brie Schmidt said, get the financing facts and the to do list for a loan going.  You have a healthy down payment now, even with 50k, so don't wait till next year because in Chicago you will pay 5-10% more holding out 12 months.  

2015 is the year for the Cubs and for @Daniel L. to buy his first three flat!!!

Make it Happen!!!!!!

Mark Ainley, Real Estate Agent in IL (#471.003954)
630-587-7400
Originally posted by @Daniel L. :

 Your strategy is very realistic, but why wait until next year.  Given the time value of money your $50K will buy less next year than it will right now.  

Ok sounds good. Thanks for the advice everyone!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.