2017 Goals - Does this Chicago Suburb Rental deal exist?

Question

While I'm not new to investing, I'm new to RE investing and would appreciate some input from the BP community.

I'm looking to get started with buy and hold rental properties. I would like to buy SFRs or townhomes that can be cash flow positive at 70% financed with a 30 year am. I would also consider a 15 year am even if it meant cash flow slightly negative.

I want to net 10% or more and ideally would like to be able to purchase below market value. I have to be able to beat publicly traded REITs which offer more liquidity.

I'm wanting to put some cash to work and am looking very long term (i.e.  Buy and hold forever).

Anybody in this market have any suggestions? Is this deal out there? Where should I be looking?

Account Closed · Answer

A bit late to the party on this thread. My experience has mostly been with bidding on and purchasing REO's listed on the MLS. 10% ROI is tough now, three years ago, it was tough also. These days over 8% is doing really well.

Naila Qureshi · Answer

I'd be interested in your insights as well.  I purchased my first multi-unit property in October but I am also interesting in buy and flip.

Asif I. · Answer

@Ben Clark I am also building my rental portfolio in the western and north western suburbs and have experience in doing 7 real estate transactions last year. If you would like to connect and bounce-off strategies, let me know!

@Meghan McCallum I would like to connect with you and see what insights you can provide. Do you also have access to deals below market price/ARV?

Ben Clark · Answer

@Jeff Wallenius thanks! Would love your contacts for operators.

Ben Clark · Answer

thanks @Meghan McCallum and happy new year. I have a business, which I work on full time. My time is flexible, but I'm really looking to invest in real estate passively.

I have experience putting systems in place at my company to improve efficiency.

I would definitely set up an LLC.

Where is the best place to find a mentor or coach?

Jeff Wallenius · Answer

@Ben Clark welcome to Bigger Pockets! As @Meghan McCallum said you can accomplish every investment goal you set out in your post. The key is strong partnerships and providers you trust and have long track records. Many opportunities across the nation depending on your goals. If your looking in your backyard I've got a contact if your looking for proven operators. Be happy to assist if you need more information. Best of luck!

Meghan McCallum · Answer

Ben,

Happy New Year. This is absolutely something you can do. But, you need to think about how involved you want to be. However its much more complicated. Have you considered property management? Are you interested in turnkey properties? A few suggestions for you, find a partner, a mentor, or get some coaching. Every area in Chicagoland has so many variables indetermining market value. Finding great deals like you are talking about takes knowledge, systems, and experience...oh yeah a lot of hard work.

I'm happy to see you want out of REITs and want to own your own tangible properties. Please let me know if you would like to speak more in greater detail on what steps you may like to take moving forward. I have assisted many new RE investors with their first purchases and I myself have properties from DC through Iowa. Like I said, where to send you to invest all depends on how involved you want to be in the day to day.

In regards to financing, one can only hold so many loans in your name, your spouse can hold so many in theirs for traditional loans. Also, consider starting an LLC for some legal protection and other actions towards asset protection. It can get more complicated the more your net worth.

Welcome to BP and I look forward to speaking to you more as you move forward.

Meghan