All Forum Posts by: Bob Crane

What a time to get the first deals locked in, Oy!

Short question - do you chase the bubble up at the beginning to keep investing or work harder for rare opportunities?

My plan was originally to acquire 3 single families per year for my first five year.  This year I've completed 1.  3 other deals looked great at first glance but the numbers didn't pass analysis.  The market went CRAZY in the last six months and each one of those either sold fast or is worth way more now.  Feeling like if I don't increase my risk I'm going to be sidelined for the next few years.  I'd love to hear from those who've been through hot markets - what have you done in the past and what's your plan today?

Deal 1 - 5 BR 2600 sq ft for $230k.  Needed lipstick.  Sold in March after 60 days on market.  Similar house same neighborhood with less SqFt just sold for $330k.

Deal 2 - 1/2 of a duplex (4br). Needed rehab. - 14 months on market FSBO $159k, seller wouldn't drop below $150k. Listed with realtor and sold for $168k in 3 days.

Deal 3 - 3/2 1200 sq ft SF - Need rehab.  $150k.  Couldn't make numbers work for more than $130k (which they wouldn't take).  Sold in 4 days.

I've remodeled a house for BRRRR and I'm waiting for my close at the end of July. I'd paid cash for that house and I'm financing to get my $$$.

I now see a solid next purchase that will require a mortgage (I can't do a 100% cash purchase).  Have any of you gone to the bank and started another mortgage app while one was in flight?

Even as I type it the thing sounds crazy.  But figured I'd reach out rather than just let this one get away.

Thank you for the advice.  I'm leaning strongly toward sticking with it.  This community is small without very many job prospects and the house is on a heavily traveled street (only street to grain elevator).    When I saw the larger $$$ for homes in the area I began to wonder if this is going to be the top of the market for a while.  Sort of "strike while the iron's hot."

But sticking it out still means more equity (as the renter pays things down).

Thank you @Christopher Phillips.  My wife and I were disucssing the article this morning and that was one of my theories.  I can name half a dozen people I know that have moved on from the building trade and have no plans of coming back to it.

Finishing up Reno on a 1450 sq ft 3/1 in central IL. All new HVAC, roof, plumbing, floors, fresh paint, etc. Plan was to BRRRR. I've got $62k invested and it will rent for $800 per month. Local realtor said I could sell for $80k. House next door with half sq ft and one less bedroom just sold for $76k.The same realtor laughed when he saw the listing and said it would never sell. Sold in three days. Would you plow ahead with buy and hold (my first deal) or try for $$$ now?

Some of you with more time may understand this more than I.  From my view everything seems to point to more demand for houses (at least in today's market).  Makes me wonder why we aren't seeing more permits and foundations.

Housing Starts Drop - SF Gate Article

Off and on I've looked at properties near AU.   I see there are 2-3 properties over there someone is clearly renting to students.

I'm wondering your thoughts on this (whether or not you actually are investing in student rentals at AU).  I can't decide if there is a big enough student population to warrant the investment.

@John Strong - thanks for the detailed reply.  How does repairs on the older homes impact you?  Is there a home that is too old?

I may reach out for some contractor contacts.  Finding anyone consistent in Dwight has been a struggle.

Picked up my first property last fall.  C-class in a small town (Dwight) about 30 minutes south of Joliet.  I've got $60k in and planning to rent for $800 per month.   I'll be financing in the next 30 days to pull the cash back out for future opportunities (about $30k for the next deal).

I feel the biggest opportunity in Illinois exists in Chicago.  Unfortunately I don't feel I have the $$$ to pick one up.

Central and Southern Illinois appear to be hot rental communities (many more renting than owning).  The cost per sq ft is quite a bit lower than Northern IL/Chicago.  Cashflows appear to work.  My concern is how to find a buyer when it is time for the exit.  Also I can tell you it was pulling teeth to find someone to work on the home I've purchased (had several connections in the suburbs make a drive down as a favor).  I have family in both communities that I can rely on for oversight.

Anyone have experience in these or similar communities?

Didn't see this posted.  Moody's posts an across the state forecast based on historical trends and known future opportunities.  Lots of comparisons between different parts of the state and Illinois vs the nation.

Link to PDF:  Moodys 2017 PDF

More real estate/people focus begins on page 9-10.

Bottom line - Chicago continues to have positives, Northern and central Illinois might be good bets, southern Illinois looks a little scary.