All Forum Posts by: Ibn Abney

Dee Jay I hate when people who don’t invest in Chicago or live here, speak on Chicago investing. Every Large MSA have several sub markets and not all move in the same direction and grow at the same rate. Even within the city, folks tend to only know one side of the city as the area is so large and dense. Plenty of great areas and inventory in Chicago!!! Yes the market is doing well but deals are there!!

@Edit B. 

1) If rent rates can cover all expenses including taxes and still cash flow per the investor desired return than whats the big issues with taxes? Never understood this argument. 

2) Assuming the $400K property is equal to the $290K property in all aspects as possible, how does paying 28% more for a property with the same or less cash flow make sense? I can buy more doors with the same or better cash flow, which my tenant pays. I can get my principal back faster to reinvest which equates to compounding returns. (who hates compound interest?)

3) States like NJ is much worst and property values are much higher. Yet people make money in NJ. At the end of the day its all about the numbers.

4) If you are flipping, successfully, taxes shouldn't be too big of a holding costs for a 3-9 month hold.

my 2 cents

This a club for anybody, interested in REI and SouthEast Side of Chicago.

https://www.meetup.com/South-East-Chicago-Real-Est...

@Casandra M. could be very lucrative. But honestly, I feel there is so much competition in that area between airbnb landlords, hotels, and other STR sites. Also, HOA rule changes can be a killer (i don't like large condo buildings).

I would suggest targeting small buildings 2-12 units, in areas with less hotel competition, like near Univ. of Chicago or Loyola, Northwestern Univ., whitesox field or ohare airport for an airbnb. (my airbnb is near Loyola. the final four in march was a great time!! :-)

good luck!

@Katie Fiola Jones Chi-town is the place to be...!!! 

strong rental market, diverse economy, and a food scene you will enjoy... my 2 cents 

:-)

Too many project going on right now!!! Looking to move this property which was recently purchased via foreclosure auction!!! Property located in historic Pullman District. http://www.pullmanil.org/

Great Opportunity to Owner Occupy or Rent for Passive Income! 4Beds/1.5 Baths. 

Rents range $900-$1100. ARV $75K-$90K

Very Minimal Rehab Required (Under $15K, all Cosmetic). Seller Financing Available. Project Management/Contractor available if needed. Few Pics:

https://www.dropbox.com/sh/gz1ioxq9zs572t9/AAAx5eR...

Comps:
https://www.redfin.com/IL/Chicago/10745-S-Champlai...
https://www.redfin.com/IL/Chicago/10661-S-Champlai...
https://www.redfin.com/IL/Chicago/10647-S-Champlai...

https://www.redfin.com/IL/Chicago/10704-S-Langley-...

Michael Tootelian with any wholesale deal as long as the numbers work it will sale fast!! Condos on the Northside, especially without rental caps, will sale fast. Not at $350k tho.. more so under $150k If there are rental caps and/or home occupy requirements that will definitely delay a sale. Good luck!!

@Dan Razowsky @Andrew Fredrickson i'm down and in the city!!!  Lets do it!!! Saturdays are best me?

@Michelle Osunmakinde Congrats!!

Honestly, with those returns sounds more like a D/F area. Do you mind sharing the area?

However, those returns definitely sound realistic in Chicago. As you mentioned the property management/tenant screening/tenant relationship is key.

Many people are just scared to go to these areas, so the ROI is great. With all things equal the typical break-even point is 2-3 yrs in these areas. However, the turnover cost (when a tenant moves out) are usually higher ($2K/unit) and you are assuming everyone pays rent 100% of the time.

Economic Vacancy is usually much higher than the standard 5% physical vacancy assumption.

Good Luck!

Philip Chung congrats on getting started!! I am a local long term Buy and Hold Guy. I honestly feel you may be cutting yourself short on the city. There are a lot of great neighborhoods which are safe and in your price range, especially if you are willing to go more south or west of the loop. $300 a month is doable on the north side of the city and I would aim higher when going south or west of the loop or outside of Chicago. Min. ($450-$600)/month ( don’t just look on Zillow/Redfin for deals). Lastly, everyone is different and if you were in Cali investing in the Midwest it would be different, but I think there is a lot of value when self managing your first few doors to gain experience. Handling people/your tenant is a large part of owning real estate! Good Luck!