All Forum Posts by: Aleksandar Popivoda

Another big government screw-up that is conveniently being used to vilify the wealthy and productive and boost the victimhood mentality of the dependent class. If you can sprinkle some identity politics on top of it then you just have a perfect recipe of how to run Democrat state/county for decades. Enjoy the ride!

I have a hard time thinking that Dave and Rob didn't catch this colossal misrepresentation. Having said that, this is not the first time that BP Podcast is presenting  false figures and not bothering to correct them, even after some comments clearly call them on their BS numbers. I remember a show, a year or two ago, when a highly pumped-up guest claimed that after just one year of investing, as an inexperienced beginner,  he jumped into serious fix and flip game, by doing 80 flips a year!? In no moment Dave asked him how is that possible and what exactly he did to scale that rapidly. 

However, looking at the content of the vast majority of comments under this YT video, we can see these are mostly people who come for inspiration and cheering, not for some serious RE discussion. I guess BP Podcast now mostly tailors their show to this crowd, there are more likes and views in that. Corporate strategy, I guess. 

@Greg C. Thank you for your feedback and information you provided. I've already took into account the IL and Cook County failed policies but it's always good to be reminded about them. 

I am an investor in NW Indiana and I know that market pretty much. However, I recently stumbled upon a 6-unit building right across the border, in Lansing, Illinois. Sellers are mom & pop type, friends of friends, ready to retire and go back to their homeland in Europe. They've kept the property in pretty good shape, based on what I saw.

Anyway, I think I can get it for $430k and they would be willing to do seller financing with a 3-5 year balloon and favorable terms. 

Current Rents are under market, approximately $800-$900 per 2b+1 unit. I would describe the area as B- and based on what I've found through Zillow the expected rent should be $1,100 per unit. So, there is a nice value add right there.

Expenses:
Tax: $20k (based on 2022 assessment of $290k)

Insurance: $3,000

Water: $1,400

Common Power: $900

Garbage: $900

Lawn: $1,200

Repairs: $4,000

PM: myself, (or, to put a price tag of 6% Revenue - $4,300)

Based on the numbers, I will have a decent CoC return of 15% and Total annual ROI of 20% at the first year of stabilization. It looks enticing in this market, doesn't it?

Here are my questions:

1. How particularly hard is property management in Lansing, IL? Does anyone have first-hand experience in stabilizing MF properties in this area?

2. When can I expect the next tax hike? On the Cook County assessor site it says that the next re-assessment is scheduled for 2023. If they reassess the property based on the sale price I can expect tax to be close to $30k, almost half of my Income?! How does it make sense for anyone to invest in Cook County then? Am I missing something?

Thanks for your insight in advance.

Quote from @Chris Gavre:

Hey Guys. I've been in the game for about 2 years. Started out wholesaling single family, built up a decent portfolio of about 170 units. 

I don't get this. You have been wholesaling for 2 years and built up portfolio of 170 units...??

Sorry, but I respectfully disagree on the tenant education part. I do more then enough by making sure that my tenants have highly satisfying living conditions backed up by excellent customer service (I manage my properties). It's not my job, or a moral obligation, to educate them on improving their credit profile/ scores and their overall financial knowledge. Financial education takes time and most importantly - willingness of the student to learn and get engaged in it. It's not my place to put myself on that pedestal. 
If they come to me and ask me how I've accomplish what I have - I would tell them my story in general, of course. But you should always keep in mind - your tenants are not your friends or family. 

Agree with the @Matthew Paul. When they come out and look, they don't only assess the job and their profit margin but they also assess you. They have a plenty of job and they don't need yours at all. You are in their mercy, so you better compete for them instead of looking at that other way around. 

Congrats on the job well done!
Can you give us some specifics that would help us see the bigger picture here - how long it took you to renovate, how much was the holding cost and how much was your profit after everything was paid? 

Congrats on the deal!

Just to clarify - you said that you want to fix and flip front unit, but then you said you want to refinance?! What is the strategy here?
Also, can you give us some numbers so we can assess the deal? How much is your renovation budget and how much are you projecting your ARV to be at the end? That would be helpful.

Congrats on the first duplex completed!
One thing I have to notice is that presenting your profit on this particular duplex can be little misleading. You calculated the purchase price of $100k?! How did you come to that number if you bought a portfolio of properties, not just this one? As you said this was the nicest property of the 12 you bought and therefore required minimum renovation budget. I tend to believe that the seller put more average weight on that property than on the others when he decided to price the whole deal. The real return will be known when you finish all of them, particularly those that require highest renovation budget. 
Anyway, it seems to be a great start.