Married couple in Central Illinois aiming for 4 plex in a year

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Married couple in Central Illinois aiming for 4 plex in a year

Brian Engstrom
Member since 2019 路 9 posts 路 0 votes

Hello everybody - I am a carpenter and my wife Molly and I are just starting out, trying to learn as much as possible before we find and buy a 4-plex with an FHA next fall. We are in our late 20's have a 3 month old daughter who keeps us motivated to create more family time and money.

We are planning to buy a 4plex around Bloomington or Champaign, Illinois, so we're learning and saving as much as possible in the mean time. (Podcasts and audiobooks everyday, 10% of income saved as in The Richest Man in Babylon.) We also have some credit repair to do. 

Anyway thanks for checking out our post and we're excited to start connecting with people here on the forums!

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  • Account Closed
    Real Estate Agent 路 Las Vegas, NV 路 Member since 2015 路 2k+ posts 路 1k+ votes
    6y

    Congrats on creating a goal and a plan to carry it through .  BP should be a big help in your quest

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  • Brent Paul
    Rental Property Investor 路 Shakopee, MN 路 Member since 2015 路 985 posts 路 374 votes
    6y

    Welcome to BP!  That's a great goal and plan.  Tons of free resources here to tap into before you make the purchase.

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  • August Kleinschmidt
    Real Estate Agent 路 Jacksonville, IL 路 Member since 2014 路 8 posts 路 1 vote
    6y

    Hey Brian, welcome to BP! A group of us have started doing a meet-up in Springfield. It would be a little out of your way but you and your wife are welcome to join us. Next one will be in January. Good luck!

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  • Quentin McNewPro Member
    Real Estate Investor 路 Champaign, IL 路 Member since 2017 路 63 posts 路 37 votes
    6y

    @Brian Engstrom you can get a couple now in Champaign and Bloomington that are hitting over that 1% rule that would eliminate/lessen your housing expense. I鈥檓 still in Champaign area if you ever want to meet up just shoot me a message 馃憤. 

    [email protected]
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  • Brian Engstrom
    OP
    Member since 2019 路 9 posts 路 0 votes
    6y

    Thank you to everybody for the encouraging responses!

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  • Marcus Brown
    Investor 路 Phoenix, AZ 路 Member since 2013 路 136 posts 路 29 votes
    6y

    Be careful in Champaign, violent crime seems to be increasing.

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  • Anthony McEvoyPro Member
    Investor 路 Champaign, IL 路 Member since 2018 路 160 posts 路 114 votes
    6y

    @Brian Engstrom - awesome!  Congratulations on starting to work towards your plans.  I am also in the Champaign area and got started last year with my first rental.  Let me know if you and your wife want to meet up!

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  • Shawn Q.
    Rental Property Investor 路 Champaign, IL 路 Member since 2015 路 146 posts 路 80 votes
    6y

    Welcome! I think your plan is a good one, though you'll need to be patient to find the right deal. The Champaign and Bloomington markets are both challenged for different reasons, and you'll need enough meat on the bone to stay defensive for coming challenges. Feel free to reach out if you want to chat - I'm always happy to meet with new investors. 

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  • Jeremy TaggartBusiness Member
    Real Estate Agent 路 Pittsburgh, PA 路 Member since 2014 路 850 posts 路 646 votes
    6y

    @Brian Engstrom best way to start! Will change your life

    DHRE- The Jeremy Taggart Team590 Reviews
    View Page
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  • Kolton Weichman
    Normal, IL 路 Member since 2019 路 8 posts 路 5 votes
    6y

    @Shawn Q. Very true. What challenges do you see both in Bloomington & Champaign?

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  • Matt PowellPro Member
    Investor 路 Bloomington, IL 路 Member since 2016 路 59 posts 路 19 votes
    6y
    Originally posted by @Shawn Q.:

    Welcome! I think your plan is a good one, though you'll need to be patient to find the right deal. The Champaign and Bloomington markets are both challenged for different reasons, and you'll need enough meat on the bone to stay defensive for coming challenges. Feel free to reach out if you want to chat - I'm always happy to meet with new investors. 

    Hello,

    I am an investor from Bloomington. I think I see where Shawn is leaning on this. Some rentals in the Bloomington market are a little more pricier and the difference in rent for say Pontiac, Decatur or other similar cities aren't that different. As with any city it is all about buying wisely. I'm also available to talk. We usually have weekly meetings on Friday afternoons in Bloomington if you'd like to sit in or even have a one on one. Either way.

    Good luck and Congratulations on your decision! It will be worth it. 

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  • Shawn Q.
    Rental Property Investor 路 Champaign, IL 路 Member since 2015 路 146 posts 路 80 votes
    6y
    Originally posted by @Kolton Weichman:

    @Shawn Q. Very true. What challenges do you see both in Bloomington & Champaign?

    Both share the challenge of being in the state of Illinois. The state is experiencing net population outflows, and there will likely be a corresponding increase in taxes over time. An unbalanced state pension system and the need to undo decades of mis-management are also current and future stressors. 

    Bloomington I believe (though it's been a while since I checked population details) is shrinking, like the rest of the state. Even with a static number of units means downward pressure in time on rents. State Farm is far and away the biggest employee in that area, and I imagine they're going to continue their footprint in that market, or at least you need to factor that into your long-term calculations. 

    Champaign is (again, if I recall correctly) growing in population, but slowly. However, it is being wildly overbuilt in student units, particularly at the high end. That's going to put downward pressure on rents, and upward pressure on finish as students come to expect more. That does create opportunities in non-student rentals, but those are challenged as well. A particular issue (as John Boland mentioned in the 'Where to start investing' thread) is that there's a shortage of midrange SFRs available. That creates another opportunity to fix a lower-end property and market as low mid-range, but that may be a bit more time or money intensive of a strategy for most. 

    As everywhere, there are challenges and opportunities in both markets, but Bloomington and Champaign are going to take more work than some other non-Illinois areas to ensure you're in the right deal. 

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