Newbie from Illinois-small town

1 Reply

My wife and I are starting down this road. Our strategy is to buy local to start. Our budget for investing is about $100k cash each year and an additional budget of $3500/month that we are transferring to our llc. We are planning to start with $500k roughly of property. We have identified 7 units with 5 currently occupied and one duplex that needs cosmetic renovation. These units are in C neighborhood and will consume about 245k of our initial budget. The second bundle is a mixed used building with commercial long term tenant on the ground floor. And two structurally rehabbed residential floors above that are bare and need a complete buildout. That building is 225k and the commercial tenant’s lease covers the 15 yr note. The rehab qualifies for some substantial subsidies in downtown district with city having a grant program for market rate apartment buildout of $25k per unit matching dollar. Does this seem to ambitious out of the gate? The $142k budget won’t change our lifestyle at all or cause significant financial pain but I would definitely prefer not to lose it Thanks Tyrone
Originally posted by @Tyrone Riley :
My wife and I are starting down this road. Our strategy is to buy local to start. Our budget for investing is about $100k cash each year and an additional budget of $3500/month that we are transferring to our llc. We are planning to start with $500k roughly of property. We have identified 7 units with 5 currently occupied and one duplex that needs cosmetic renovation. These units are in C neighborhood and will consume about 245k of our initial budget. The second bundle is a mixed used building with commercial long term tenant on the ground floor. And two structurally rehabbed residential floors above that are bare and need a complete buildout. That building is 225k and the commercial tenant’s lease covers the 15 yr note. The rehab qualifies for some substantial subsidies in downtown district with city having a grant program for market rate apartment buildout of $25k per unit matching dollar.

Does this seem to ambitious out of the gate? The $142k budget won’t change our lifestyle at all or cause significant financial pain but I would definitely prefer not to lose it

Thanks Tyrone

 Hello and welcome! Best of luck to you!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you