New to BP and looking to invest in Chicago multifamily.

New Member Introductions
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New to BP and looking to invest in Chicago multifamily.

Dave Shutack
Chicago, IL · Member since 2015 · 3 posts · 1 vote

Hi All,

My name is Dave and I'm hoping to learn everything I can about getting starter in real estate investing. I stumbled on BiggerPockets.com in my pursuit and have really enjoyed all the great content and community this website has to offer!

A bit about me: I have always had an interest in real estate investing and now believe it is time for me to get started. I'm a 24 year old finance grad from Michigan State University. I live in the northside neighborhood of Lakeview in Chicago, IL and work full time as a digital marketing consultant. Ever since moving here 2 years ago, I have been allured by the abundance of triplex and fourplex homes that line almost every residential street of my neighborhood. It is my goal to purchase a multifamily home with an FHA loan, reside in one of the units, and rent out the others.

I'm hoping to learn from other Chicago investors what their thoughts are on the local multi-family market, if it is recommended to purchase a first property here, and if so, what to look for in a property? Any advice is appreciated.

I'm looking forward to meeting some new people and continuing to learn more here on the forums!

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Brandon TurnerPro Member
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
11y

Hey @Dave Shutack thanks for introducing yourself! It's great to have you here! Don't miss The BiggerPockets Podcast - they are great for learning how others are finding success.

Oh - and be sure to set up some Keyword Alerts- especially for "Chicago" so you'll be notified when people mention it here in the forums.

Thanks again for introducing yourself!

Podcast Guest on Show #92
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  • Michael S.Pro Member
    Biggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
    11y

    @Dave Shutack

    Welcome to Biggerpockets. 

    BiggerPockets
    0Reply
  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    11y

    Hey @Dave Shutack thanks for introducing yourself! It's great to have you here! Don't miss The BiggerPockets Podcast - they are great for learning how others are finding success.

    Oh - and be sure to set up some Keyword Alerts- especially for "Chicago" so you'll be notified when people mention it here in the forums.

    Thanks again for introducing yourself!

    Podcast Guest on Show #92
    1Reply
  • Guyoz Golan
    Jerusalem, Israel · Member since 2015 · 144 posts · 14 votes
    11y

    Hi and welcome to BiggerPockets!

    I'm not from Chicago but sure you will find the right partnership right here on the forums.

    Feel free to connect and best of luck!

    0Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    11y

    @Dave Shutackwelcome to the sight and Go Spartans!  

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61090 Reviews
    WebsiteView Page
    0Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    11y
    @Dave Shutack Welcome to BP.

    Upen Patel, Mortgage Banker

    Federal NMLS# 1374243

    [email protected]571-200-6180
    0Reply
  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @Dave Shutack

    Welcome to Bigger Pockets. Consider sending messages to other members for specific guidance.

    0Reply
  • Account Closed
    Pasadena, CA · Member since 2015 · 73 posts · 11 votes
    11y

    @Dave Shutack Welcome to BP, it's great to have you here.

    0Reply
  • Josh Sartori
    Investor · Chicago, IL · Member since 2015 · 29 posts · 7 votes
    11y

    Hey Dave, 

    Welcome to BiggerPockets, this place is awesome for us Newbies. I bought a place in Logan Square right out of college myself about two years ago so I know exactly where your at right now. Feel free to connect and reach out if you have any Specific questions

    0Reply
  • Elizabeth J.
    Investor · Chicago, IL · Member since 2015 · 21 posts · 12 votes
    11y

    Hi Dave,

    I think it's great that you are thinking about multi-unit buildings.  My husband and I purchased our first multi-unit building this summer, after years of buying condos and town homes as investments.  I have stressed out a lot with this purchase, but the potential is great.  Our building has 6 units and we inherited a lot of building problems (have already redone the roof, some plumbing, electrical and rebuilt some stairs, along with renovating some of the units).  We wanted to purchase a 3 flat, but the numbers for cash flow were just not working out in the areas we were considering.  The 6 flat has much better cash flow (especially now that we raised some rents after renovating some units), but is a lot more work to fix up and required a commercial loan.  I found the commercial loan process to be quite a headache to get through, so the smaller buildings with conventional loans might be a better way to start off.  We purchased in an area with a really good rental market - lots of students in the area.  That has been really great for attracting renters.  

    My advice would be to do your homework on exactly when any work has been done on the building (our "turn-key" building was not so turn-key), obviously have a really thorough inspection done and inquire as to how existing tenants are.  We inherited a horrible tenant from the seller and had a really challenging time getting him out and collecting rent.  Our building is now running so much better with tenants that we have selected and screened.  If you are going to reside in the building, I assume you will manage?  If so, the rules are a bit more lenient than if you didn't occupy the building - but you still want to make sure you have the time to devote to fixing things, dealing with tenants, etc.  If not, you might want to factor in hiring some people for e.g. snow removal, etc.

    Owning a multi-unit building has been a lot of money and work from our standpoint but well worth it in the end with great cash flow and not having to pay assessments.  I don't focus too much on appreciation since we like to buy and hold, but I think some of our improvements will definitely add to that, as well.

    Lots of luck!

    Elizabeth

    1Reply
  • Kyle Tokasey
    Investor · Tempe, AZ · Member since 2015 · 304 posts · 19 votes
    11y

    Hey Dave,

    Great to see another young investor like yourself here on Bigger Pockets!

    Looking forward to interacting with you on the forums.

    Best of luck to you Dave,

    Kyle

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Dave Shutack - If you are looking for North Side I have some property analysis I can run that I can send you.  It will give you an idea of what numbers to expect at different price points and areas.  PM me your email address and I will send it over.  

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    0Reply
  • Erika Carter
    Residential Real Estate Broker · Chicago, IL · Member since 2014 · 155 posts · 42 votes
    11y

    Welcome Dave!  Im from Chicago as well!

    0Reply
  • Kumar Paj
    Real Estate Agent · naperville, IL · Member since 2014 · 193 posts · 53 votes
    11y
     @Elizabeth J.:

    Good info Elizabeth.. I think, I am at the exact spot right now where you were couple of years ago i.e. have been buying condos and SFH and now considering to buy a multifamily with Cash Flow. However, based on some initial research it seems that buying a multifamily is getting more and more competitive and hard to find a cash flow multifamily in B Class neighborhood.

    @Brie Schmidt would you mind sharing those property analysis with me? If you have any multifamily in B class neighborhood, I will be interested.

    Thanks

    0Reply
  • Renea Steward
    Massage Therapist · Chicago, IL · Member since 2015 · 613 posts · 84 votes
    11y

    @Dave Shutack

    Welcome to Bigger Pockets.  Involving yourself in forums, blogs, podcasts, and webinars will avail you opportunities to engage with members while ingesting informative information.

    At the bottom of this page is a list with help in it. Click on help. You will see answers to questions that you didn't even think of.

                               Enjoy as you prosper.....

    0Reply
  • Jonathan Pliszka
    Financial Advisor · Lexington, KY · Member since 2012 · 150 posts · 66 votes
    11y

    Welcome to BiggerPockets, @Dave Shutack. This is exactly what I did. I was living in Lincoln Park/Lakeview and then purchased a multi-family in Old Irving Park using a FHA loan, moved in the first floor and rented the other two units. Last year, I did refinanced out of the FHA loan, took some cash out and bought a condo in Logan Square.

    Let me know if I can be of any help as you look into the process. Good luck!

    1Reply
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