First time home/Multi unit buyer

13 Replies

Is there anybody in Chicago (NW side specifically) who is willing share with me in purchasing my first home (multi unit)? Please let me know, I don't know many investors seeing that I'm just getting started. Willing to buy coffee 😁

Are you looking for advice or partners? The forums don't allow any "deal making" which would include looking for partners, financing, real estate agents, etc. Be sure to read the rules located at the bottom of the screen.

And good luck getting started!

I'm looking for advise and what other investors use to make a decision on whether to buy or wait. I know it's a bit expensive in the NW side, so cash flow is harder to find. Any investors in this area, I would greatly appreciate your time and advise. 

@Paul L Harast Jr you should reach out to @Brie Schmidt . She works with a lot of buyers on the north side, and she also runs a meetup that meets the third Tuesday of each month. Meetups are the perfect way to meet LOTS of investors, and you can often times learn an incredible amount from the more experienced folks there. 

Quick history, I just graduated college and have my 1st big boy job. Looking to find a multi unit property that will be my primary residence for under 350K. I already have a real estate agent, already pre approved. I just want to speak with people who own multi units to see if I'm getting myself a good deal or not. Also, just to network and learn from their experience. I already put an offer on a multi unit, but I got out bid, so I'm using those time to hopefully be guided in the right direction by a seasoned investor. 

@Paul L Harast Jr - You need to determine what your REI goals are, both long term and short term. Once you know what you want to accomplish, you can bounce your thoughts off of others.

That is to say, cash flows aren't going to be enormous in stable areas, but appreciation should be around 5% annually and depending on the number of units and how much value you plan add to the building during your term of ownership, you could easily end up living for practically nothing on a monthly basis. 

Well my 1st goal was to live rent free, but as I look at the market in the Northwest side of Chicago I'm finding out that's very hard with the dollar amount I've been approved for. I still want to live in that area because it's closest to my job and I want to reduce my commute while I build equity. Just need help with the first goal, finding cashflow after shouldn't be hard because I won't have to reside in those units. 

"
I still want to live in that area because it's closest to my job and I want to reduce my commute while I build equity. Just need help with the first goal, finding cashflow after shouldn't be hard because I won't have to reside in those units."

AND

Your "first goal" is: "Is there anybody in Chicago (NW side specifically) who is willing share with me in purchasing my first home (multi unit)?"

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You suffer from woolly thinking. You are looking for an investor while you "build equity." Any investor, however, is going to take a slice of that equity, which means your equity grows slowly, if at all. That investor is also taking a slice of the cash flow.

You need to answer two questions: First, how much of a commute are you willing to stand? Second, is your building equity going to be in the form of appreciation, or in the form of cash flow? I can tell you right now that it is a rare thing to have a purchase situation where you are getting BOTH cash flow (properly defined) AND appreciation. Choose one.


One you figure out your commute time and what form your desired equity build will take, figure out your desired return on investment. Look at properties that meet your commute time and dig into the numbers from there. In your numbers, include management company expenses. You are a rookie after all, and no experienced investor is going to let you collect rents, screen tenants, arrange maintenance and all that other good stuff. Let me tell you something; There went your return on investment goal,


Once you do that, BEFORE you talk to an investor, figure out your exit plan. Your exit plan is not for you, it's for him; At one point or another, your investor will want to cash out and move on. How are you going to handle that? In what time frame? You need to have a complete dog and pony show for your investor, not something that you both will make up on the fly.


At the end of the day, I think you will start looking at the South side near mass transit in addition to your preferred NW side.


Ahhh, the hopes of youth.

Hey Paul, 

My buddy and myself did exactly what you're referring to after graduating college in 2012. Graduated, wanted to live in the city without having to pay for it, and didn't want to pay rent. We've since sold that property and I've continued buying investment properties while my buddy got out of the game. Nevertheless, I'm in Logan and willing to grab coffee and offer any advice that I can. Feel free to DM me.