Rental Property Investor · Bolingbrook, IL · Member since 2020 · 17 posts · 7 votes
I hear find yourself the niche that you want to be in. Well apartments are where I want to be I like the fact you have one mortgage and tax payment on multiple doors. Except I have no experience in investing.
Should I start off with a small fourplex or should I just save a little bit more and then go for a larger apartment?
If there is anyone is the suburbs of Chicago that I could just shadow behind and help greatly appreciate it.
Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
6y
Hey Josh, I am in the south Loop. I'm a broker and also specialize in investor/commercial financing. I can tell you, if you do not have any other rentals, I would start with a triplex/fourplex. Simply because you should self manage your first couple of units. The experience and knowledge acquired during this time is of utmost value when you pivot into other assets or scale up your current portfolio.
You must know how to put into place checks and balances for the vendors you hire, otherwise there are plenty of companies that will simply take advantage of the situation. Get the landlording experience and focus on how to be a great landlord and run the property efficiently and ethically. I definitely vote for 3 - 4 unit starting out. There is more turn over on these properties , so when you go to sell, it won't be on the market forever (like office/retail/ other commercial assets effected by external economic forces). After the 3-4 unit, scaling up the multifamily route would be the way to go.
Holy cow - you are awesome. Thank you so much for typing out such a detailed response. I'm going to send you a message and invitation to connect. I definitely want you to expand on each point. Yes, I save 85% of my income. I am on a journey towards achieving F.I.R.E!!