All Forum Posts by: Account Closed

By renovating dogs do you mean the D hood?  What do they say when you tell them its a bad idea?   Or do you edge them on?

Im fascinated by coasts investorS who think D is for Delirious amounts of profits.

@Account Closed I was just speaking about this with my lender, who is also an investor locally in the Chicago market. He said credit is getting too easy, and he has seen this show before. The main thing is to have strong cash reserves in place and to have long outlooks/multiple exit strategies in place on deals. I am buying an apartment deal right now locally in my Berwyn market, and it is the type of value add deal that looks really good on paper with a 3-5 year hold. I want to be able to survive an interest rate rise at the refinance by having adequate cash buffers in case I ever had to bring money to a closing to refinance. This is easier said than done, but it is something I am trying to do more and more. For me, investing is a long game, and it is more important to not lose than to win big!

Jack and Jill first time buyers that only use traditional methods of buying off the MLS may be buying at the top of their market cycle, but maybe not. RE is always local.

We are investors and can buy from distressed sellers all asset types for value adds or re-purposing.  We can buy off market and get creative with our seller solutions.  

These articles are for the 3 or 4 over their lifetime, your house is your biggest asset home purchasers.  Which are you?  A Jack and Jill emotional home buyer that gets all giddy at the open house or are you an investor that buys right no matter what, solves seller problems, adds value and has multiple exit strategies?  

I have never tried this and do think there is some risk ...

similar to cash for keys ... Cash to move away from your rental.

Offer to pay $100 for each tent and all occupants to move away and not come back.

If it works:

• Time is money.  A few tents is a few hundred dollars.  You can easily spend scores of hours dealing with this issue and may not have any success.
• It likely affects your property value more than a few hundred dollars.
• It may result in happier and longer term tenants.

The risk is they tell all of their homeless buddies who now set up behind your rental in hopes of getting an easy $100.

It is just moving the problem elsewhere but in this case the NIMBY can affect your finances.  In addition, I feel an obligation to provide safe and nice homes to my tenants.  I do not feel I have the obligation to provide safe and nice homes to everyone.  I do not have the means to address homelessness on city wide basis.

I think I would try it on these initial few tents and if anyone else moves back to the same location in the next 6 months, I would look for a different solution.

Good luck.

Right on, I will keep that in mind and keep up the search. Thanks for your insight on this, @Account Closed

Thanks @Ray Johnson, for the insight. I've got a great agent in the area as well as a reputable Property Management company. I was born and raised in this area, so I've got other objective contacts with many decades of experience to assist with Due Diligence. I've also got my loan Pre-approval process underway and have been given the above numbers (5%, 1-point) as what my interest rates will be. My minimum Cashflow would be $200/month. 

As for the low end tenants, @Account Closed, I definitely don't want to go down that road- I'd rather not deal with low quality tenants. For that, I am looking closer to the state university in the town and farther away from the quasi-warzone area where all the $20k properties are. I will also be very clear with my property manager about tenant screening (prior evictions, criminal records, etc.). 

Any words of advice for avoiding low quality tenants?