Relatively new to this

8 Replies

Good Evening.  We’re new to this site so I figured I’d take a sec to introduce us.  My husband and I are investors in single family home rentals in NW Indiana.  We currently own two rentals in Valparaiso and are looking to expand into more doors.  We’re currently looking for a multi-unit which is terrifying but I keep telling myself, in for a penny, in for a pound.  

@Mindy Kristensen welcome to BP. A small multi unit isn't that much different than a SFH. It is still about the numbers. If the numbers work go for it. If they don't skip it.

Originally posted by @Mindy Kristensen :

Good Evening.  We’re new to this site so I figured I’d take a sec to introduce us.  My husband and I are investors in single family home rentals in NW Indiana.  We currently own two rentals in Valparaiso and are looking to expand into more doors.  We’re currently looking for a multi-unit which is terrifying but I keep telling myself, in for a penny, in for a pound.  

Welcome! I'm in Valparaiso, too. We have 3 single family homes and then 2 apartments in our own home. The main thing I've noticed over the years between sfh and apartments is that some tenants really want to have their own place while others don't mind sharing a building with others. I've had several tenants/applicants whose reason for moving is just that they're tired of apartment living and want their own space. And they're willing to pay a premium for it, compared to what they'd pay per room or square foot in an apartment. 

The nice thing about multi-unit, of course, is that you get more paying tenants under one mortgage/roof/major repairs.

@Mindy Kristensen Welcome Mindy!  I'm also looking for a multi family home in NW Indiana (Highland Park, Dyer, Munster, St. John, Schererville).  

Goodluck!  There's so much competition and so little inventory.

Hey all! 

@Daniel Guerra & @mindy 

Just curious, have you considered other markets? There are several markets that still offering fantastic deals. Check out the chart I attached to get an idea of which markets are coming out of a bottom despite the elevated asset prices we are seeing. 

@Thomas Staub

Hi Thomas,

You definitely have an interesting chart.  I live in the Chicago area and honestly, feels like Chicago is overpriced in the good areas.  What hurts the Chicago area prices are the high property taxes in Illinois (2nd highest in the USA).  

Anyways, I did look at different markets from a distance.  Unfortunately, I feel as a first investment having a long distance property would be too risky.  I think the closest spot near me that you cover would be Indianapolis.  That's about 3 hours from me.  I would consider going there but not as a passive investor.

@Daniel Guerra - Interesting re: Chicago. Are you seeing a migration to Milwaukee? That is a market we are considering expanding in to but I'm having a hard time confirming the variables we typically solidify, are there. I know investors are pouring money into that area but wonder if there is any movement from Chicago to neighboring cities. 

@Bobby Sharma

@Thomas Staub

People are definitely leaving the Chicago Area.  There's people heading to Wisconsin, Indiana, Arizona, Texas, Florida, etc.  The only thing that's keeping the Chicago Area population at bay are the newborns.  I just realized I don't live too far from Milwaukee Wisconsin (less than 2 hours).  I'm currently looking at properties in Northwest Indiana (Lake County - 30 minutes from me).