23 Year Old in Chicago with 20K
I am a 23 year old currently renting in the Lakeview neighborhood of Chicago for $950/month and my lease is up on May 1, 2016. I am tired of paying rent every month and have 20K to invest in real estate. Looking for advice on what kind of properties I should look at pursuing and the steps I need to take to insure that I have my own place to live in by that date. Any advice/opinions would be greatly appreciated.
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@Clark McNally $20k is enough for closing costs + 3.5% down payment on $450k worth of financing. I encourage you to give up the idea of living in those neighborhoods for a couple of years and focus on building your future. I thought those were the good neighborhoods for a few years after I first moved here but after living all over, it doesn't really matter. Really. I'm at Argyle & Marine and it's not cool at all here... unless you like the best Vietnamese food in the city, Lincoln Park (the park, not the neighborhood) & the lake as your front yard, and living between 2 of the best beaches and it's amazingly quiet.
Instead of those neighborhoods, move a little west and get a $400k 3 or 4 flat that cash flows with you living in it, pay yourself rent for 2 years and save another $20k and then rinse and repeat. Buying a $400k property every 2 years will give you $1.2M in property in just 4-5 years.