Beginner Investor Moving to Chicago

Beginner Investor Moving to Chicago

Investor · Chicago, IL · Member since 2020 · 66 posts · 55 votes

Hello,

I am a senior in college finishing up my last semester. In July I am starting my career in investment banking in Chicago.

During this downtime I have invested nearly all of my time into learning about real estate investing and educating myself before I start investing on the side of my job. I am interested in investing in multi-family residences. The plan is to spend my first year of work saving money and learning absolutely everything I can about investing in multi-family properties. Then come around May-July of 2021 I want to buy my first multi-family residence (most likely a duplex or triplex). Then I want to slowly "trade-up" and continue saving and adding more properties as I work towards larger multi-family residences. My goal is to own luxury apartment complexes down the road.

My Favorite Business Book: Rich Dad Poor Dad

My Favorite Real Estate Related Book: The Book on Rental Property Investing by Brandon Turner

Hobbies/Interests: College Football, MLB, NBA, NFL, architecture, The Office, golf, surfing

Contact: I am very responsive to my email which can be found on my profile.

Thanks a lot and I hope to meet and learn from some of you.

-Reed

3Reply
101 views

Most Popular Reply

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

@Reed Meyer - what kind of budget and areas are you looking in?  What type of loan program?  I would definitely suggest renting for a year and getting to know the areas during that time.  In Chicago it is illegal to deny a sublet, so as long as you find an adequate replacement tenant you can move out anytime during your lease, offering flexibility with your purchase timeline 

See this reply in the discussion

33 Replies

Jump to latestLatest
  • Investor · Arlington Heights, IL · Member since 2014 · 58 posts · 15 votes
    6y

    @Jeff Burdick congrats on closing on a new place! Would you mind sharing the details? Price, taxes, expected rent, Capex, etc? I have ran numbers on dozens of places and could not justify the capital vs the return.

    I agree on condos completely. My first place was 50k that is now worth $110,000 and I rent it for $1100 a month so I got a steal with that one...until that special assessment comes...but it has produced a 150% ROI over 4 years so far. Agreed that this is not the norm or anywhere near what my recent purchase will be.

  • Investor · Chicago, IL · Member since 2016 · 515 posts · 247 votes
    6y
    Originally posted by @Trevor Fritz:

    @Jeff Burdick congrats on closing on a new place! Would you mind sharing the details? Price, taxes, expected rent, Capex, etc? I have ran numbers on dozens of places and could not justify the capital vs the return.

    I agree on condos completely. My first place was 50k that is now worth $110,000 and I rent it for $1100 a month so I got a steal with that one...until that special assessment comes...but it has produced a 150% ROI over 4 years so far. Agreed that this is not the norm or anywhere near what my recent purchase will be.

    I'll PM you.   

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

    @Jeff Burdick - but how long ago was that?  I haven't seen a non-gut rehab for $300k on the north side in years

  • Investor · Chicago, IL · Member since 2016 · 515 posts · 247 votes
    6y
    Originally posted by @Brie Schmidt:

    @Jeff Burdick - but how long ago was that?  I haven't seen a non-gut rehab for $300k on the north side in years

     We closed in January. 

  • Chicago, IL · Member since 2017 · 2 posts · 2 votes
    6y

    Hi Reed,

    I don't have much experience to add to this conversation but I am actually in a similar position to you. I am a junior in college and plan on moving to Chicago when I graduate in May 2021. I'm hoping to secure a full-time job and house-hack a 2-4 unit property with an FHA loan within 1-2 years of graduation. Best of luck with your plans, I would love to hear about your experience house-hacking in Chicago if you do go down that route next year.

  • Accountant · Chicago, IL · Member since 2020 · 62 posts · 23 votes
    6y

    @Brie Schmidt Hi Brie,

    I saw your previous comment regarding the average home prices up north and near downtown. What about the southside? Areas like Oak lawn, Chicago Ridge, Evergreen Park, Hickory Hills, etc. How much of a down payment should I save? How much should I save in cash reserves?

    Warmly,

    AJ

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

    @Alleia James - I have no idea, I only work in the city.  maybe @John Warren can tell you

  • Craig CurelopBusiness Member
    Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    Hi @Reed Meyer. Welcome to BiggerPockets!

    Great to have you here in BP and good to know that have started educating yourself about REI. A lot more information and resources are available in BiggerPockets site, just keep searching and connecting with other successful members around. I am giving you some of my tips/insights:

    1. Subscribe to the BiggerPockets Money and Rookie Podcasts

    2. Attend the FREE WEBINARS

    3. Attend a Meetup in Your Area

    4. Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy

    5. Peruse the forums! Ask questions! Answer Questions!

    Good luck in your investments! Keep safe and see you around!

    Best regards,

Join the conversationCreate a free account to reply, vote on answers and follow this thread.