Small multi-family (2-4 units) buy & hold investment in Chicago.
Purchase price: $40,000
Cash invested: $65,000
Duplex, complete remodel, Section 8
What made you interested in investing in this type of deal?
Friend's who have invested in the same area.
How did you find this deal and how did you negotiate it?
Property Management Company recommended the exact property.
How did you finance this deal?
How did you add value to the deal?
Remodel and Rented
What was the outcome?
Property Management company did not do a good job. Property has appreciated 200% in 3 years. Cash flow has been good but not consitant because of poor property managers.
Lessons learned? Challenges?
Most important lesson is to really find the best property management company.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not at the Moment. The property is up for sale, and will recommend the Agent after the sale if they get it sold and are professional.
@Vincent Khristov - Congrats sounds like overall the deal was a success, but came with a few speed bumps. I have a couple of questions:
Can you share the exact neighborhood where you invested?
Who was your property manager?
How come you are selling?
If you are looking for a solid Chicago property manager I would connect with @Mark Ainley with GC realty.
@Vincent Khristov That's awesome! When was the purchase? 3 years ago? Also, interested in the answers to all of @Jonathan Klemm 's questions
Hi Johnathan & Tony,
I invested in Chicago's Oak Park area in 2016. The property appreciation has been great! I'm looking to move on to bigger properties with a group of investors I put together, so I'm deciding to sell.
The property management company I use is Homeriver Group. They were actually called something else when I first started with them. They changed the name. They have improved somewhat, but really try to squeeze a lot out of you in terms of paying for upkeep and some fee's. Also didn't handle some evictions I needed done in timely manner or really secure the property after I did it, so they returned. The maintenance work I paid for is not great. Said they bought new refrigerators and they look old to me etc. Just did a ton of maintenance work through them to get new renters in. A few days after they move in they say I need new cabinets and to replace windows? My question is how was this not assessed before when we were doing the work. Constant problems. Another big reason I'm selling. I think its just too much hassle to have small duplexes etc.
Hope this helps and great connecting with you all1
@Vincent Khristov congrats on buying a great deal! Sorry to hear about your management issues. Oak Park should be an easy area to manage in as the tenant quality is great and there is high demand. If you end on holding onto it, why not look at other management options? You have quite a few options in the area there.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you