Need help and advice to invest in first rental property
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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#3 Private Lending & Conventional Mortgage Advice Contributor
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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.
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.
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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 ?
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Invest within a 30 minute radius from where you live. Avoid markets you do not have easy access to when you are starting out.
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.
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?
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.
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.
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.
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@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.
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@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.
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.
Quote from @John Warren:Thanks John for the advice. yes, this is the reason I am considering Chicago suburbs only.
@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.
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.
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?
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.
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! :)
