Chicago, IL · Member since 2017 · 30 posts · 49 votes
It's been a long process since making an offer 4 months ago in January, but I'm officially the owner of a soon to cashflow 2 flat with a garden unit, each as 2 bed 1 baths! I'll be owner occupying the finished garden unit and currently looking for tenants to occupy the nice and spacious 1st and 2nd floor units. Initially I was going to live in the garden solo until a friend out of the blue asked where I was living and things just fell into place. I just scheduled my first walkthrough for this Saturday as well and am double checking all what I need to prepare to show the unit. I couldn't be more excited as my adventure and knowledge base all started here with BiggerPockets and the fine hosts and guests of the podcast. Cheers!!!
Rental Property Investor · Brattleboro, VT · Member since 2015 · 204 posts · 174 votes
8y
congrats! I also got started with a 3-unit house hack 2 years ago. it has been a great experience and the money I have saved from not paying rent has allowed me to purchase 6 more units in the past 2 years.
as far as finding tenants make sure to do a background check and call their previous landlords and their job to verify employment.
Rental Property Investor · Erie, PA · Member since 2016 · 168 posts · 124 votes
8y
Congrats! I am in almost the same set up as you, a flat 2/1's, and a carriage house that I reside in. You could amp up your house if you have three bedrooms. I have a permanent roommate in one bedroom, and then I AirBnB the other room. Just got the permanent roommate this summer, don't know why I waited so long. AirBnb has been going strong for 3 years. You are doing it the right way, keep it up!
Rental Property Investor · Brattleboro, VT · Member since 2015 · 204 posts · 174 votes
8y
congrats! I also got started with a 3-unit house hack 2 years ago. it has been a great experience and the money I have saved from not paying rent has allowed me to purchase 6 more units in the past 2 years.
as far as finding tenants make sure to do a background check and call their previous landlords and their job to verify employment.
Rental Property Investor · Detroit, MI · Member since 2018 · 47 posts · 36 votes
8y
Congratulations Danny! Do you mind if I ask where in Chicago you found the property/where you were looking? Feel free to PM me if easier. Awesome work!
Shawnee, KS · Member since 2018 · 33 posts · 10 votes
8y
Hey Danny, congrats! I am currently in the saving and learning stage and hope to buy my first property in 2019. How long did you do your research before plunging in the offers?
Chicago, IL · Member since 2017 · 30 posts · 49 votes
8y
@Dorothy Butala, @Josh Dillingham, @Brian Medansky, @Paul Bommarito, @Kris Mo thank you all! I am finally enjoying a beer after a long night of cleaning and prep. My first showing is tomorrow morning which I used GoSection8.com to schedule 5 potentials all at the same time. Rounded them up in just 3 days so feeling pretty good so far!
Chicago, IL · Member since 2017 · 30 posts · 49 votes
8y
@Paul Bommarito I currently live in Logan Square and commute to the suburbs of Addison everyday, 1 hour both ways. It sucks. But I love living in the city where all my friends are so I was then restricted from there to my income, but I also wanted to stay in the area. Southside would definitely have worked but much farther commute and way too much crime. I landed this place in Humboldt Park. I used Realtor.com and filtered a 300k max price, 3+ bed, 3+ bath, and multifamily. My goal was to analyze 200 properties and buy within 2 years so I could have it before I turned 30 as a goal. I ended up analyzing 32 properties mostly in Humboldt Park where the search results seemed most prominent and I eventually contacted a realtor. I gave him the same parameters and when one of the places I found matched one his results gave me I decided to look and ultimately made an offer on it after an inspection.
Chicago, IL · Member since 2017 · 30 posts · 49 votes
8y
Hi @Kris Mo, I spent about a year educating myself online and through the BP podcast. Once I found a place that looked to cashflow very nicely I went for it! It will need a new roof and a bit of masonry soon which I'll tend to over the next year once I have some income flowing. I felt a lot of trust with my inspector and valued his opinion when making my decision to go through with it if I could put in the sweat equity. $205k building, and with a 3.5% fha loan, owner occupied, and in a low to moderate income area, with lender credits, I only put down $4,500 with less than $1,800 in upfront costs, inspection, appraisal. Like holy moly I would have done this sooner knowing now that is all it cost.
Shawnee, KS · Member since 2018 · 33 posts · 10 votes
8y
@Danny Maller Ahhh that is SO EXCITING! I'm motivated even more now knowing you only put down $4,500! I was planning on saving 10 - 20K but I may be closer than I think! Looks like I need to spend the better of my time learning and educating myself than saving :)
Chicago, IL · Member since 2018 · 24 posts · 14 votes
8y
@Danny Maller That all sounds so awesome! I've actually been looking at Humboldt Park myself. It seems to be one of the next areas to become gentrified but, is definitely not a bad neighborhood. Plus it is still close to all of the "nicer" places.
Chicago, IL · Member since 2017 · 30 posts · 49 votes
8y
@Kris Mo Consider your big capital expenditures; roof, hvac, plumbing, etc. Then also consider what if the place doesn't rent right away, or you loose your job even. Save up enough so that if you buy a place and the roof caves or all your hvac units explode, you have the funds to cover it. It has happened to people. I have 20k in reserves now as an emergency fund. Once I build that amount from rental income I can reconsider that initial 20k my own again and do with it as I want. But it needs to be there for backup first. It allows me to sleep at night for SURE.
Chicago, IL · Member since 2017 · 30 posts · 49 votes
8y
@Brian Medansky I've gotten a lot of positive feedback from my realtor, lender, inspector, attorney all saying the area is set to appreciate in the next 3-5 years. I'm just like yeah we'll see. It'd be a cherry on the top for sure but I sure am not buying based on that, though still would be nice. Something I do wish I had done seems a little complicated but would be pretty awesome: use a large map of the area, print or digital, and put pins with sell prices on housing that matches what you're looking for. create several maps. year over year. and look for the wave of appreciation. I'm not sure how credible it would be but surely you could reveal some sort of wave I'm sure.
@Danny Maller Ahhh that is SO EXCITING! I'm motivated even more now knowing you only put down $4,500! I was planning on saving 10 - 20K but I may be closer than I think! Looks like I need to spend the better of my time learning and educating myself than saving :)
"Looks like I need to spend the better of my time learning and educating myself while saving"!
Chicago, IL · Member since 2017 · 30 posts · 49 votes
8y
Well edited @Brent Coombs! The real strategy to financial freedom and wealth building happens in tandem with continuous knowledge building. I'm speaking as a beginner but couldn't feel more confident in the approach of building initial wealth through frugality. Shoutout to @Scott Trench for that one!
Real Estate Broker · Staten Island, NY · Member since 2017 · 101 posts · 43 votes
8y
Awesome spot, congrats!! My mother is from Brooklyn but my father is from Bridgeport, Chicago (Southside- go Sox!) so I definitely understand you desire to be in the city, it’s one of my favorites. I’m looking to get involved in the Chicago market once I get a grip on this whole thing a little closer to me, maybe we’ll cross paths in a few years! Congrats and keep going!
San Jose, CA · Member since 2018 · 16 posts · 6 votes
8y
Flipped a few and have a few rentals. The biggest deal is we've been able to upgrade our primary home thru flipping and now have a considerable equity in it.
Chicago, IL · Member since 2017 · 30 posts · 49 votes
8y
@Alex Ferraro Thanks! Still getting traction here with renting, interest is starting to pick up this month. I've showed the place to about 7 potentials and gotten through screening with 1 that is looking to move in on June 1st. No contracts yet. I found out my basement has a leak and spent a few hours last night mopping with a tiny sponge mop. I think I've located the source of the leak and will bring someone in to assess repairs. My neighbors are wonderful and we're all on the same page in regards to some drifter people that hang out on the sidewalk sort of out front and to the side, and it has deterred at least 2 of the renters from applying. I had a property manager come visit and he thinks my rents are too high. Still getting a feel for everything while still feeling confident.