All Forum Posts by: Alex Manwell

@Brie Schmidt that answer was a quick google search away... so basically anything anything under 20% will require that. My mistake @Rhoda Agyepong!

Perhaps best to wait until you’re back in nyc, or put 20% down.

@Brie Schmidt 5% conventional would have the same 1-year expectation?

@Kevin Scanlan Jr. threading the needle of finding a solid multi-family in a Chicago B-neighborhood that cash-flows AND is commutable to downtown on CTA/Metra (I'm guessing that's important...) is tough in 2019. Meetups are where it will probably happen. 

A neighborhood you didn't mention but may work for you... South Evanston. I own a 3-flat there, and I see 3-4 units with decent cash flow for <500k come up every couple months. They go relatively quick, but are not impossible. It's an active rental market and the area has improved rapidly, especially along Howard St. The purple line (express train downtown), red line, Northwestern, proximity to the lakefront, and solid schools are assets that will ensure healthy rental growth long term. 

@Rhoda Agyepong that is indeed the case with FHA. At the closing you sign a HUD form indicating your intent to occupy the property as your primary residence for one year... so buying with an FHA might not be the best option for you.

However if are ready to do *something*, consider purchasing a condo with a 5% conventional mortgage, and keep it as a rental when you move out of town. You'd be in good company: South loop is a very active rental market, and lots of out-of-state investors park their capital South Loop property. 

Key here is running the numbers and making sure your prospective property will cash-flow upon moving back east. That is to say:  rent covers the expenses, including your mortgage payment.

The kicker with Chicago buildings is HOA/association fees. They will make or break your cash flow. Important to find buildings with good reserves, that are friendly to rentals, and have reasonable monthly HOA fees.

Happy to talk more! Feel free to shoot me a message with any questions. My brokerage's office is at 18th and Michigan, so South Loop is a market I follow closely :) 

@Rhoda Agyepong welcome to the Great Lakes!! Just in time for summer :)

Buying a multi-family (3-4 unit) in Chicago to occupy as your personal residence while you’re here would be the “house hackers” way to get started. You can do this with a 5% down payment conventional mortgage.

Where in the region do you commute for work?

@Tony Sawah little village was an excellent choice. Touché!!

@Lauren Billups do you own any properties already? If not, I’d suggest looking into that. A federal government paycheck will make any mortgage broker smile :P

I found that my personal experience buying, managing, renting, etc. my own portfolio has given me much more credibility when dealing with brokerage clients, especially as a newer agent. Many agents don’t even own their own home, let along invest in multi family. Build your knowledge base by getting your hands dirty :)

@Brandon Tobalski thank you for sharing Brandon.

Something that stood out from your post above is that you are active military. This is huge, as you can qualify for the holy grail of financing: a no down-payment mortgage through the VA!

The VA offers active service members and vets 100% LTV mortgages (aka 0% downpayment), and they can be used for up to 4-unit properties.

If I were you I’d call a mortgage broker and walk them through your financial situation, making sure to mention you’re active military. They’ll give you some guidance if you need to pay-off some of your debt, or boost your savings a before getting qualified. But buying a multi-family property might be more feasible than you imagined :)

@Lauren Billups congrats on passing your exam, Lauren! The beauty of brokerage is that it’s possible to begin building your business while working another job(s), but it requires discipline. Do you have a full time job already?

Choosing a brokerage with established training programs and a welcoming support structure is important.

However, I think the real way kick start your business is to find a mentor who you respect and is willing to train you. I would focus on finding someone in your target market who is busy and offer to help them out with showings, dealing with rentals, etc... Busy agents always need help. This is how I got moving fast and got comfortable dealing with clients. In my experience, after doing some favors for agents in my office, they threw me referrals for smaller deals they don’t have time to handle. It’s a win/win.

@Tony Sawah nicely done! I recommend to all my friends that they buy multi-family for their first property versus a high-end condo. As for the property manager boondoggle... that’s a live-and-learn moment. We’ve all been there.

Which neighborhood in Chicago did you buy in?