Engineer · Savoy, IL · Member since 2013 · 92 posts · 12 votes
Champaign Urbana Savoy and surrounding markets, I'm looking to purchase by end of November. I'm planning on conventional bank financing for a 1-4 unit.
If you know of anything, have something under contract but aren't planning to keep it, let me know. If you're thinking of selling any of your personal inventory, shoot me the info.
I'm also seeking opinions on SFH vs 2-4 units. If you have specific knowledge to the region, that's of course ideal, but I'm open to generalized arguments as well.
I'm in the same boat, getting ready to start looking for one more property to pick by the end of the year. I just finished the rehab on my most recent purchase and got it rented so I haven't really ramped up my search yet to have any potential leads.
If you are able to get 30 year fixed financing, I would lean towards a multi-unit just for the sake of maximizing the number of units you can acquire with your ten fannie/freddie loans. That being said, in Decatur, multi-unit properties are few and far between to start with and then trying to find a good one out of the minimal options is very tough, which is why my last four properties I've picked up have been SFR. I just can't find a multi that can compete with the cash flow of SFR without making huge sacrifices in neighborhood.
Champaign-Urbana is definitely a different type of market than Decatur so I'm not sure if you will find the same thing there but just my two cents on my market. Not sure how seriously you are considering buying outside of your home area but if you are I'd be happy to provide more insight on Decatur. Price point will likely be lower here for similar quality/neighborhood houses so just something to keep in mind if that plays into your situation at all.
Thanks for the thoughtful input. I'll have to get an update on your progress since last we spoke.
I'm generally in alignment with your view on SFH v multi unit. I mean from what I am perceiving, the 2-4 units have much lower (buy & sell) turnover and typically (at least on the open market) the units are sitting out there for many months or even years without much price adjusting. It seems that each duplex seller is holding off for the live-in-one-side-rent-out-the-other price. I'm leaning towards SFH for the ability to buy and sell quickly as well.I will indeed be able to get 30 year financing and you bring up a good point with the 10 max loans.
I appreciate the insight offer on the Decatur market, but plan on sticking to Champaign county for the time being. It makes the most sense for me currently anyways.
I'd be interested to see how you do locating a multi family. From my experience in the champaign market, you can find ok deals on the mls every once in a while but they are always the wizard houses with 2-4 units on top of each other. If you're looking for traditional 2-4 multi family you will almost have to find an off market deal. I agree 100% with what your talking about when you say the owners are holding out for buy and live in one side pricing. But I will keep my eye out for any and let you know if something comes around. Are you wanting to stay away from the bradley mckinley and beardsly stuff?
I'm late in responding here, so forgive me for that. I appreciate your post. Also, I just read your profile details and I love it. Quotes are good and by the looks of it you've maybe picked up another property or two since we last talked.
I'm still searching for my next property. I bought a new personal residence last month and just now am getting my duplex rented out. Silly to move this time of year! The multi-unit search has been returning nothing for me. I've not set up any marketing or mailers for my search, of course. I don't plan on buying in the bradley beardsly area right now, although if the deal is right, I may consider it. I did look at a few of the older homes in that general area that were swapped over to multi's at some point. They were just so old and in such shabby condition that I was concerned with the maintenance costs over time not fitting into the pricing properly. The deals just weren't right.
Still searching! Let me know how you've been progressing sometime. Let's get coffee or a beer, eh?
@Anthony Hornbeck New house thats exciting! Yeah i agree we need to set up a time to catch up. This weeks crazy but i got your number ill touch base next week.