Chicagoland and how to find a good tax advisor

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Chicagoland and how to find a good tax advisor

Tiffany J.
New to Real Estate · Member since 2020 · 32 posts · 12 votes

Hello! I started looking at open houses in Chicagoland because it is the area that I know. Some people say to start off with an area that you are familiar with. 

However, I have also heard that the laws favor the tenants in Illinois. It also seems very difficult to find properties that will provide cash flow. Am I better off looking elsewhere even though I am new at this and this is the area that I know?

Also, do you have recommendations on how to find a good tax advisor? (Not asking for a referral but I am not sure how to find a good tax advisor.)

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Tony AngelosPro Member
Real Estate Agent · Member since 2019 · 192 posts · 131 votes
6y

@John Warren Also following this as I've been looking for a good tax advisor for a couple months. I just reached out to your suggestion so thanks for posting that!

@Tiffany J. Within the city limits itself, there is a pretty wide of variety of opportunity. You are likely able to find turn key or minimal cosmetic rehab in basically all areas, but have you thought about the type of return you are shooting to achieve? That will likely have a big influence in the area you decide to invest in.

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  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    6y

    @Tiffany J. Chicago is an incredible market, and there are plenty of areas that offer cash flow still. Which areas were you looking in and what type of investing are you looking to do? 

    As for a tax advisor, there are many good ones here as well. You could connect with @Steven Hamilton II. He is local and is well known here on BP. 

    1Reply
  • Tiffany J.
    OP
    New to Real Estate · Member since 2020 · 32 posts · 12 votes
    6y

    @John Warren

    I am just starting and have only looked in Skokie/Morton Grove area so far. I was originally looking at single-family only, but think that maybe small multi-family will provide more cash flow. I am looking for properties that need minimal to no work. I have very limited time. Therefore, the plan was to try to find some really good deals and hire a property manager to handle them. At this point in time, when buying real estate, cash flow is most important to me.

    Thanks for the tips!

    0Reply
  • Tony AngelosPro Member
    Real Estate Agent · Member since 2019 · 192 posts · 131 votes
    6y

    @John Warren Also following this as I've been looking for a good tax advisor for a couple months. I just reached out to your suggestion so thanks for posting that!

    @Tiffany J. Within the city limits itself, there is a pretty wide of variety of opportunity. You are likely able to find turn key or minimal cosmetic rehab in basically all areas, but have you thought about the type of return you are shooting to achieve? That will likely have a big influence in the area you decide to invest in.

    1Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    6y

    @Tiffany J. - I definitely agree with @John Warren for this tax advisor recommendation.  My taxes are starting to get complicated and I am super happy to be working with @Steven Hamilton II.

    Just to clarify are you looking for an investment property or would you consider doing a house hack?  Finding a single-family rental property with solid cash flow and needing no work is more like a turnkey property.  What type of down payment do you have available?

    If it's a straight investment property you can't do FHA so that's why I always recommend looking for a 2 flat house hack. I do like Skokie and Morton Grove but it will be a little pricey over there. If you need any other recommendations or referrals feel free to shoot me a PM. Happy to help.

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  • Tiffany J.
    OP
    New to Real Estate · Member since 2020 · 32 posts · 12 votes
    6y

    @Tony Angelos

    Would it be at all possible to find something that would bring in $200 or more monthly cash flow? $500 would be ideal but I don't know if that is possible at all.

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  • Tiffany J.
    OP
    New to Real Estate · Member since 2020 · 32 posts · 12 votes
    6y

    @Jonathan Klemm

    Investment property, not house hack. I have enough of a downpayment to do a conventional loan, I think. Thanks for the tips!

    0Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    6y

    @Tiffany J. you might try reaching out to @Brie Schmidt as she handles that area. The big issue when you buy in nice areas is that the cash flow is a bit slimmer. To get a good enough deal in that area you would most likely need to be a cash buyer or at minimum using a 25% down conventional loan. The nice thing though is that the tenant quality will be great meaning lower headaches. 

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  • Tiffany J.
    OP
    New to Real Estate · Member since 2020 · 32 posts · 12 votes
    6y

    @John Warren

    Thank you!

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    6y

    @Tiffany J. - inventory of 2-4 units is limited in those areas and the returns are not as good as you will find in the city. Feel free to PM me your email address and I can send over some property examples so you can get an idea of what kind of ROI to expect

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y

    @Tiffany J.

    I agree, if possible, you should invest in an area that you know very well. You have a competitive advantage in this area compared to those that are investing long distance and never been to the area.

    You may want to consider area's that you grew up, areas that you visited, areas that you went to school at.

    There is a risk in every decision that you make but you are always looking for ways to limit the risk.
    Yes, Illinois will have more tenant friendly laws but if you screen properly you should limit the risk of a tenant not paying.

    Good luck to your investing career!

    [email protected]917-280-8544
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