New to investing/rental properties/Chicago

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New to investing/rental properties/Chicago

Drew Obradovich
Chicago, IL · Member since 2021 · 2 posts · 3 votes

Hey BP world, 

I'm Drew and I'm very new to bigger pockets and real estate in general. I've been renting for years and am embarrassed to admit how much I've spent that way. I'd love to buy a rental property, or a multifamily home and rent the other unit. It seems the more I read on here, talk to others, and do my own research the more I realize I'm still at step 1. I have the down payment money ready, so getting a conventional loan wouldn't be much of an issue. My question is where do I look? I seems hard to find good investment properties on Zillow etc. I'm open to Chicago, Chicago suburbs, and Northwest Indiana for rental properties, and Chicago for multifamily. Help?

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Michael Facchini
Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
5y

@Drew Obradovich, kudos on making the decision to not only purchase your first place, but to house-hack a multi-unit!  This is where it all begins!  Regarding areas to look at, whether in the city, suburbs, or NW Indiana, there are of course pockets for each where you can find neighborhoods trending, where you might ride more of an appreciation wave....or neighborhoods that are a little more established and rents already stabilized.  Depends on what you're looking for, and your budget/price-point - I'd establish your requirements and price range first, then start exploring.  In terms of exploring, find a great agent for the areas of interest that know that sub-market AND specialize in multi-units.  The 2-4unit property is a different game, so you definitely want specialists on your team.  Good news is, you have down payment saved up and the drive to make something happen.  The rest can be figured out from here!

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

    @Drew Obradovich - depends on what your budget is and what you are looking for.  The closer to downtown the higher the price less cash flow/more appreciation vs suburbs it is lower prices more cash flow/less appreciation.  Will you be living in the property?  Then there are personal reasons like commute, access to transportation, condition, unit size, ect

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  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Drew Obradovich - Who cares how much you've spent on rent to date! haha It's in the past and the good thing is you have a new vision going forward.  Focus on that.  

    Step one:  Find an awesome agent like @Brie Schmidt (NW side of Chicago) or @Eudith Vacio (NW Indiana & W side of Chicago.

    Step two:  Talk to an awesome lender like @Zack Karp or @Michael Facchini

    Step three:  Let your rockstar team, guide you in the right direction (i.e, location, purchase price, etc.)

    Getting into real estate is tough which is why most people end up not pulling the trigger.  You are in the right place to get the right help you need to get started.  
    @Michael Facchini

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  • Olivia Radziszewski
    Realtor · Chicago, IL · Member since 2019 · 274 posts · 191 votes
    5y

    @Drew Obradovich congrats on deciding to take the step towards a real estate investment! It can definitely be hard to pin down exactly what location is best, however once you start looking with your price range and capabilities in mind, areas will start making themselves clear. Let's connect and talk more!

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  • Michael Facchini
    Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
    5y

    @Drew Obradovich, kudos on making the decision to not only purchase your first place, but to house-hack a multi-unit!  This is where it all begins!  Regarding areas to look at, whether in the city, suburbs, or NW Indiana, there are of course pockets for each where you can find neighborhoods trending, where you might ride more of an appreciation wave....or neighborhoods that are a little more established and rents already stabilized.  Depends on what you're looking for, and your budget/price-point - I'd establish your requirements and price range first, then start exploring.  In terms of exploring, find a great agent for the areas of interest that know that sub-market AND specialize in multi-units.  The 2-4unit property is a different game, so you definitely want specialists on your team.  Good news is, you have down payment saved up and the drive to make something happen.  The rest can be figured out from here!

    1Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    5y
    Originally posted by @Drew Obradovich:

    Hey BP world, 

    I'm Drew and I'm very new to bigger pockets and real estate in general. I've been renting for years and am embarrassed to admit how much I've spent that way. I'd love to buy a rental property, or a multifamily home and rent the other unit. It seems the more I read on here, talk to others, and do my own research the more I realize I'm still at step 1. I have the down payment money ready, so getting a conventional loan wouldn't be much of an issue. My question is where do I look? I seems hard to find good investment properties on Zillow etc. I'm open to Chicago, Chicago suburbs, and Northwest Indiana for rental properties, and Chicago for multifamily. Help?

    You are in the right place Drew!

    0Reply
  • Mark Plesha
    Realtor · Highland, IN · Member since 2015 · 47 posts · 29 votes
    5y

    I agree with @Jonathan Klemm, the money spent on rent is in the past, focus on making the best decisions going forward! That's awesome you have saved up enough money for a nice DP, now just don't spend the next 3 years in analysis paralysis like I did before I finally purchased a rental lol. If you are in the position to house hack, I would highly suggest it, I don't know what other strategy would get you to financial freedom or out of debt quicker if that's the goal. I live and invest in NWI and I'm a full-time Realtor, feel free to reach out anytime and I'd be happy to answer any questions about the area!

    1Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    Drew- I'd recommend figuring out where you'd like to live first and then explore there. Chicago has a rich culture and a variety of neighborhoods that appeal to all types of people. Let me know if I can be of any assistance in your house hacking journey. 

    [email protected]
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  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    5y
    Originally posted by @Drew Obradovich:

    Hey BP world, 

    I'm Drew and I'm very new to bigger pockets and real estate in general. I've been renting for years and am embarrassed to admit how much I've spent that way. I'd love to buy a rental property, or a multifamily home and rent the other unit. It seems the more I read on here, talk to others, and do my own research the more I realize I'm still at step 1. I have the down payment money ready, so getting a conventional loan wouldn't be much of an issue. My question is where do I look? I seems hard to find good investment properties on Zillow etc. I'm open to Chicago, Chicago suburbs, and Northwest Indiana for rental properties, and Chicago for multifamily. Help?

    Since you have the down payment required it also means you know what you can afford budget-wise so here are the steps I recommend taking:

    1.  Stop researching Zillow- While it's a good resource what you need now is some real-time data to make decisions to narrow down where you want to invest. 
    2. Hire a full-time agent with access to the data you need to make an informed decision. Data that will break sales price trends, market time, sales price versus list price, rental rates, inventory,..... 
    3. Use the data to narrow down where you want to invest
    4. If you haven't gotten your pre-approval letter from a lender then get one or get recommendations from the agent you hire for lenders
    5. Start interviewing lawyers or ask your realtor for recommendations
    6. With your areas narrowed down, realtor, attorney, and lender in place start making offers
    312-681-7487
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