Need help and advice to invest in first rental property

Chicago, Illinois
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Need help and advice to invest in first rental property

Chintan Patel
Member since 2022 · 9 posts · 6 votes

Hello everyone,

I am seeking help and advice on investing in my first rental property. Specifically, I am looking to invest in a single-family property around $250K, but I am unsure of which area to invest in for 2023.

I would greatly appreciate any insights or advice on areas that are currently good for investment, as well as any tips or suggestions for someone new to the rental property market.

Thank you in advance for your help!

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  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    3y

    Chintan,

    There are a lot of great places places to invest right now I am seeing a lot of activity in IN, TN, FL, OH, and may other states. Reach out to Beau Matlock who owns Matlock Realty Group in Indiana and ask him to send you a property list of what SFR & 2-4 Units are available. I think you might be amazed at some of the price points and cash flow opportunities.

    If your looking to buy in the $250K range that puts you into the 2-4 Unit range just might have to do a little TLC or buy turn key.  

    [email protected]727-637-4289
    0Reply
  • Kristen L GarnerBusiness Member
    Lender · Phoenix, AZ · Member since 2021 · 451 posts · 287 votes
    3y

    Hi Chintan, In the $250k price range, I'm seeing the most volume in IN, OH, MI, and FL right now with GA being a runner up. 

    [email protected]213-880-0434
    0Reply
  • Chintan Patel
    OP
    Member since 2022 · 9 posts · 6 votes
    3y

    Thanks Jason and Kristen. I am living in Chicago so currently I am considering investing in Chicago suburbs. Is it good idea to invest outside of Chicago ? 

    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Invest within a 30 minute radius from where you live. Avoid markets you do not have easy access to when you are starting out.

    0Reply
  • Paul De Luca
    Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes
    3y
    Quote from @Chintan Patel:

    Thanks Jason and Kristen. I am living in Chicago so currently I am considering investing in Chicago suburbs. Is it good idea to invest outside of Chicago ? 

     Depends on your goals and preferences. I agree with @Eliott Elias.

    0Reply
  • Lee Burns
    Investor · Chicago, IL · Member since 2018 · 337 posts · 164 votes
    3y

    I closed on a 2 family in the Avondale Park area on Feb 27th. They were asking 350 and it was on the market off/on for a bit, but I used a VA home loan and bought it for 295 (they accepted 285, but my lender and REA helped me strategize putting the price at 295) and the seller even offered some money toward closing. It's totally doable and the neighbourhood seems nice so far. Do you have at least $10k in savings and have you thought about using FHA to start?

    0Reply
  • Chintan Patel
    OP
    Member since 2022 · 9 posts · 6 votes
    3y
    Quote from @Paul De Luca:
    Quote from @Chintan Patel:

    Thanks Jason and Kristen. I am living in Chicago so currently I am considering investing in Chicago suburbs. Is it good idea to invest outside of Chicago ? 

     Depends on your goals and preferences. I agree with @Eliott Elias.

     Thanks for the advice Eliott and Paul.

    0Reply
  • Chintan Patel
    OP
    Member since 2022 · 9 posts · 6 votes
    3y
    Quote from @Lee Burns:

    I closed on a 2 family in the Avondale Park area on Feb 27th. They were asking 350 and it was on the market off/on for a bit, but I used a VA home loan and bought it for 295 (they accepted 285, but my lender and REA helped me strategize putting the price at 295) and the seller even offered some money toward closing. It's totally doable and the neighbourhood seems nice so far. Do you have at least $10k in savings and have you thought about using FHA to start?


    I have saving to put 20% down and financing is not a problem for me. getting into right first rental property and real estate market is challenging for me since I am new into this.

    0Reply
  • Scott P.
    Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
    3y

    In my anecdotal experience of owning in Indiana and having friends & co-workers who own rental property in Cook County, it seems to me that Chicago is more tenant-friendly than Indiana and that Indiana is more friendly to folks who work, save and make down payments to invest in rental property to provide Others a nice place to live in exchange for a fair, market-based monthly payment. 

    From Chicago you could easily invest "local" in northwest Indiana.

    Connect w/me here on BP if you'd like me to try to connect you with a friend of a friend, born I think in India, who owns rental property in Indiana.

    0Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    3y

    @Chintan Patel if you want to DM your email I can share with you a “Best places to invest in Chicago suburbs” ebook I wrote up.  Pros and cons of choosing city or suburbs depending on location and if you are managing how far you will be from the site. 

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61061 Reviews
    WebsiteView Page
    0Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    3y

    @Chintan Patel I am a big believer in investing close to where you live. You are the number one factor in the success of your property, even if you are using other people to do work for you like manage, lease, do construction, or rent out the property. If you invest in a different state, you will have much less control over the outcome and you will likely not have as positive of an experience. 

    0Reply
  • Harmeet Dhaliwal
    Real Estate Broker · Indianapolis · Member since 2022 · 10 posts · 6 votes
    3y

    Chintan,

    Finding the right property at the right location is key. Have you considered Indianapolis? Indianapolis has grown consistently over the past few years and is a stable market.

    0Reply
  • Chintan Patel
    OP
    Member since 2022 · 9 posts · 6 votes
    3y
    Quote from @John Warren:

    @Chintan Patel I am a big believer in investing close to where you live. You are the number one factor in the success of your property, even if you are using other people to do work for you like manage, lease, do construction, or rent out the property. If you invest in a different state, you will have much less control over the outcome and you will likely not have as positive of an experience. 

    Thanks John for the advice. yes, this is the reason I am considering Chicago suburbs only.
    0Reply
  • Chintan Patel
    OP
    Member since 2022 · 9 posts · 6 votes
    3y
    Quote from @Harmeet Dhaliwal:

    Chintan,

    Finding the right property at the right location is key. Have you considered Indianapolis? Indianapolis has grown consistently over the past few years and is a stable market.


     Hi Harmeet,

    No. I did not consider Indianapolis. Looking into Chicago suburbs only.

    0Reply
  • Victor SoBusiness Member
    Real Estate Agent · Chicago, IL · Member since 2017 · 325 posts · 193 votes
    3y
    Quote from @Chintan Patel:

    Hello everyone,

    I am seeking help and advice on investing in my first rental property. Specifically, I am looking to invest in a single-family property around $250K, but I am unsure of which area to invest in for 2023.

    I would greatly appreciate any insights or advice on areas that are currently good for investment, as well as any tips or suggestions for someone new to the rental property market.

    Thank you in advance for your help!


     Hey Chintan, what strategy are you looking to employ? Househack? Buy and hold?

    Victor So Real Estate LLC517 Reviews
    WebsiteView Page
    0Reply
  • Chintan Patel
    OP
    Member since 2022 · 9 posts · 6 votes
    3y
    Quote from @Victor So:
    Quote from @Chintan Patel:

    Hello everyone,

    I am seeking help and advice on investing in my first rental property. Specifically, I am looking to invest in a single-family property around $250K, but I am unsure of which area to invest in for 2023.

    I would greatly appreciate any insights or advice on areas that are currently good for investment, as well as any tips or suggestions for someone new to the rental property market.

    Thank you in advance for your help!


     Hey Chintan, what strategy are you looking to employ? Househack? Buy and hold?


    Right now considering buy and hold.

    0Reply
  • Nick GiulioniPro Member
    Rental Property Investor · Carmel, IN · Member since 2016 · 1k+ posts · 615 votes
    3y
    Quote from @Harmeet Dhaliwal:

    Chintan,

    Finding the right property at the right location is key. Have you considered Indianapolis? Indianapolis has grown consistently over the past few years and is a stable market.


     Yup! The water's warm out here! :) 

    0Reply
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