All Forum Posts by: Ibn Abney

Ill be interested in anything you may have. send me a message with details. 

@Account Closed Lincoln Park is a great area, one of the best in Chicago. Definitely will get appreciation, especially if you are holding for 30 yrs.

With that said, I always invest for cash flow. Some folks speculate on where the market will be in the future, but I prefer to count appreciation as gravy on top. If the rent now is $1300 and your mortgage/tax/HOA is $1250 there is no money to be made. In 5 years rent will be $1400-$1500, maybe? but your taxes and HOA will increase as well. in a downturn you go negative.

Also, do you plan to live in a studio long term? Not much room to grow. I think for the money, you can get a nice 2 bed room in a decent area  and cash flow much better come rental time.

Lastly, I would suggest putting down 5%-10% for a owner occupied unit vs. 20%. Allows you to go after another investment much sooner and grow faster. let your future tenants pay down/off your residence balance. I believe the term is called "nomad investing" similar to house hacking (2-4 units), you buy 1 unit with 5-10% then wait 1-2 years and do it again and again. until you hit 4 mortgages. but by that time you have equity in 4 properties and 3 rental units.

good luck

Inga C. Honestly everything is relative. Really depends on your goals and exit strategy. How will you use this unit in 5 yrs? Live in or rental? Also, I found condos with less than 8 units easier to join the board of the HOA and usually isn’t professionally managed. (HOA can kill your investments). Not sure how big a building this unit is in. 1) it will take 30-60 days to close if going the tradition mortgage route. The tenant lease will be up by then. 2) think of you personal home (and rentals/flips) from an investment POV. When you move, how much rent can you get for a studio? Based on rent now and you HOA/taxes/mortgage you won’t cash flow. If the market goes backwards you go negative. 3) if you come up north some a bit more, you can get 2 bedrooms units for the same price or less. Rent rates are about the same.

@Andrew Johnson as you mention and I totally agree "BE SPECIFIC"!!! As a newbie myself, of course, if you have a real situation and need help that is the purpose of the site/forum.

But I literally see the same questions everyday for cities I have alerts set up for: "How do I start wholesaling", "How do I invest out of state", "how do I house hacK". 

I feel these basic questions/topics are covered in detailed through all the podcast and on the previous forums.

I use https://www.rentometer.com/ for rent estimates. 

depends on your level of finishes. I suggest you look at other comps and decide your rehab budget/specs based on the #'s. Can range a bit based on finishes and if you decide to go the section 8 route.

best of luck.

Newbie rule#1: everyone should listen to a min. of 50-75 Bigger pocket podcasts before posting anything on the forums (preferably episodes 1-100 to get the foundation).

Everything is in the podcast if anyone listened first. Second, search the forums. Then and only then you can ask a forum question or ask for advice on the forums if you still cant find the answer.

Barry L Hohstadt recently spent time on Oahu and Kailua. I was looking into properties but found property management to be my issue. Especially for small owners 1-10 units. May be a good area to start your own operation, if you are serious about the move. I am sure other investors would also pay to have eyes and ears locally.

IRS Pub. 527. Always a good annual read. Changes slightly every year. Good to know for newer investors.

https://www.irs.gov/pub/irs-pdf/p527.pdf

Chapter 1. Rental Income and

Expenses (If No Personal Use

of Dwelling) ............... 2

Rental Income .............. 2

Rental Expenses ............. 3

Chapter 2. Depreciation of Rental

Property ................. 5

The Basics ................ 6

Special Depreciation Allowance .... 8

MACRS Depreciation .......... 8

Claiming the Correct Amount of

Depreciation ............ 12

Chapter 3. Reporting Rental

Income, Expenses, and

Losses ................. 12

Which Forms To Use ......... 12

Limits on Rental Losses ........ 13

At-Risk Rules ........... 13

Passive Activity Limits ...... 13

Casualties and Thefts ......... 14

Example ................. 14

Chapter 4. Special Situations ...... 15

Condominiums ............. 15

Cooperatives .............. 15

Property Changed to Rental Use ... 15

Renting Part of Property ........ 16

Not Rented for Profit .......... 16

Example—Property Changed to

Rental Use ............. 17

Chapter 5. Personal Use of

Dwelling Unit (Including

Vacation Home) ............ 17

Dividing Expenses ........... 17

Dwelling Unit Used as a Home .... 18

Reporting Income and

Deductions ............. 19

Worksheet 5-1. Worksheet for

Figuring Rental Deductions

for a Dwelling Unit Used as a

Home ................ 20

@Alex M. great idea. add chicago..??  happy to join.

@Dinesh Selvaraj Good in what sense? as a place for you to live or a cash flowing property? $700K. Ill prefer to buy a 2-3 unit.. live in one and rent the other two.. 

if the market crashes, what is the max rent? $3K? Also, what is the HOA?