All Forum Posts by: Brendan M.

Ah that's discouraging. I'm trying to avoid condos, I don't like the HOA fees and basically being at the will of the association. I've looked at some two flats but the numbers never work. They seem to be selling at a premium and it's difficult to get in where the numbers would work. I've been thinking more about my strategy and thinking of focusing on SFH initially. I can live in it for a year, refinance and then off to the races in buying other properties at better price points. It seems like Chicago can make sense for SFH if you can get them for cheap. I've also thought about investing in Milwaukee or Indiana area as the cash flow seems to be good with a lower entry point for homes. What do you think?

Also, if there are any wholesales or investors in the Chicago area, I'd love the opportunity to meet! Feel free to PM me

Nick Feliciano I tried to message you but your profile is private. Can you pm me

Hey @Account Closed

I'm looking at the north side of the city. I'm somewhat flexible but it really depends on the price point. 

Hi Everyone, 

I have yet to buy my first property and I am in the process of looking at properties in order to make my first purchase! I am currently located in Chicago and I am looking to buy my first property in the area using an FHA loan and living in it while renting out the other units. I am not against putting money into the property but I don't want to put more than $50,000 into the property if it's my first property. I also have no problem putting sweat equity into the property as I do want to learn how to care for and repair property as well. This should lower any costs but again this would be worst case scenario. I am seeing multiple opportunities at lower price points.

With that being said, I am looking up to $300,000 + $50,000 in repairs for this purchase (duplex or greater, ideally 5+ BR). This would be the very top end range of what I'd be looking. I'm trying to get the worst case scenario and work from there.  In the areas, I'm looking to buy, I'm figuring a rent rate of around $700 per BR (trying to be conservative). With that being said, these are the numbers I'm getting. I'm trying to prepare for the absolute highest cost point but I wanted to get your thoughts. Is there anything I am missing? Please feel free to share thoughts. 

All are annual. 

Total cost - $350,000

Down payment (FHA and closing costs) - $18,000

Rental income - $33,600 (4 BR that other's are living in, and mine)

Vacancy cost - $3360

Taxes - $5400

Debt Service - $18,000

Property Mangement fees -3360

Mortgage Ins. - $2400

HO insurance - $1200

Repairs - $2000

Total expenses = $35,720

Total income = $33,600

Annual Profit = (2120)

CoC = - 11.8%

My thoughts are that I'm only living in this place for 1 year and then moving into a new place. Also for the -11% return on cash, that would basically be a rent so I'm not too concerned with that. If I wasn't living in this property, than obviously that's a HUGE red flag. Since I am living in it and this is a thought exercise I am not worried about it. I will be living with friends in the apartment I am living and plan on having them sign an agreement and being upfront with expectations. I also am finding apartments for much less than the $350,000 I am quoting but want to work down from there so I know what to expect and any thoughts from you guys if I am missing something or need to plan for other things. I was also thinking of putting closing costs as a credit since I might not be that flush with cash depending on cost of house. I am pre approved for up to $350,000 so financing isn't an issue. 

Please let me know what your thoughts are. I appreciate it!

Thanks Dhru Das. I'll definitely check them out! I was wondering if any of you have experience investing in MFR? Or maybe tag someone who does? I appreciate any help

@Reginald Pintang, @Keishee Hill, @Marcin Talaga, @Laurice Allen, @Nino Alfano,@Mark Nolan, @Latrice Archer, @James Syed 

Thanks for the notes and support! I should have been more clear, I meant I just went to see the property and haven't yet closed on one just yet, but fingers crossed one comes up soon! I found another in Chicago that I hope to view in the next couple days. @Latrice Archer, Thanks for the names of Brie and George. I would love to meet and network with like minded people! I just ordered Build a Rental Property Empire: The no-nonsense book on finding deals, financing the right way, and managing wisely and The Book on Rental Property Investing: How to Create Wealth and Passive Income Through Intelligent Buy & Hold Real Estate Investing! so I'm looking to glean a lot of insights from those sources. Thanks again for all your help!

Hello everyone! 

I just wanted to introduce myself to everyone. Great website for learning and I find myself on here for hours reading every article possible. Anyways, I wanted to start contributing because I am looking to purchase my first Multi-family home and wanted advice/tips on how to proceed. I am seeing my second property today so excited about that!

I am investing for cash flow and was actually hoping I would be able to meet someone in Chicago who's been there/done that and I could pick their brain on everything. Thanks!