All Forum Posts by: Matt DuSold

So I know I left this broad, but it was somewhat intentional.

I finally have the ball moving with real estate and it has always been my goal to take fix and flip profits, and any other profits from RE, to turn them into rentals. Living in Chicago I know I have to invest outside of the state and Cook county at a minimum.

So before buying a rental, or going back to what you wish you would have known when you started, what should you know?

Obviously market research and knowing what kind of rents you can get in the area and so forth are needed. They type of neighborhood and area of a city (this I know varies greatly between investor especially when it come to low income and where the line is drawn).

On the opposite side I know you need your team as well. PM company or no PM company you need your contacts that can fix the place when needed.

I guess I am just looking for a condensed version of what you wish you knew before you purchased your first property. I have read many book and been on here for years so I feel I have a pretty good idea but I feel like it helps eliminate the "cold feet" if someone tells you directly what you need or don't need. If I learned anything up until this point, it's to take action because things seem to typically come together as long as you are being smart. I guess the positive to me not knowing, and asking these questions now, is that I am 4 plus months out from being able to purchase a property so it will give me time to really know everything and eliminate fear.

Thanks for the help as always!

Wow thanks for all the help guys! It definitely sounds as though there are more positive experiences with NW Indiana than Chicago. I kind of knew this coming in but the price points are tempting and I think there was a bit of "hometown" factor, granted the North side of Chicago and the South side are nothing alike.

One thing I liked more about Chicago as well is the prevalence of 6 flat type properties. I feel like anything over a duplex isn't seen out in NW Indiana as much.

Thanks again!

Ed, you seem to have experience with section 8. I knew it was not always 100% Garunteed but I did not know the amount could fluctuate. Has this happened to you and if so how often does it fluctuate? I thought I read it on here before but I could be wrong, don't section 8 tenants have somewhat of an incentive to cooperate because they could lose their funding if they don't? I could be totally wrong with that and know for the most part they are just like any other tennant.

Like you said David, I like having 6 units as opposed to one or two that way I have "less risk". The properties in Chicago are closer as well although not by too much. If you start the process of eviction on a section 8 you still get the rent until the actual eviction takes place?

Thanks for the help guys!

I am looking for anyone who owns property in these areas or has knowledge of the situation. I have always been told to stick in NW Indiana strictly because of eviction laws. But lately I have been able to find property in south Chicago at great prices.

The only argument I know of right now for NW Indiana are the eviction laws. I would guess taxes would be cheaper as well.

When looking at south Chicago I have found 6 flats that are all 3 bed 2 bath and you could be all in for about 225,000-235,000 depending on repairs. With each unit at $1,000 plus you would be cashflowing real nice. With that being said I have heard eviction laws in Cook county are bad enough to make you wish you never invested. I have though about section 8 tenants which would be great for payments but I don't want to evict a tenant and not get rid of them until a year later.

Let me know if someone can help me weigh the positives and negatives!

Sorry if this is answered, I feel like I've seen a lot of different responses on BP and then different responses on the web as well. I guess my question is pretty simple, can you use 401K funds for a flip and if so how much and what is the process like?

I've seen things say you can essentially borrow the money out of your 401K and then just pay it back like you would a loan. I have also seen things say you can only borrow up to 50k. I am sure this is somewhat dependent on the specific retirement plan itself. Has anyone had previous experience with this?

Thanks for your help!

Hey Bruce,

Welcome to BiggerPockets. If you look up in the top right corner there is a search area. Make sure the drop down says "Forums" and then search "Subject To" you will get tons of information.

You can also do a search for people, many people use the subject to method, but Nick J. will probably be able to answer just about any question you throw at him about it.

Wow I'm surprised at how negative the veiws are on property management. I'm glad I asked!

Joel, thanks for the tip! I will definitely look into it. I would think they would look highly of my sales experience so that could be a fit. I did a quick search an took a look at their websites didn't see much in the way of "careers" or "employment", best method just to walk in and see what opportunities may be available?

Appreciate the help everyone!

@ Joe, What do you mean by an LPA? Would that provide me steady income and benefits? You say PM sucks unless you have processes put in place. If you are working for an established company wouldn't those be put in place? Or is the kind of dependent on the tenant?

@ Chris, I agree BP is outstanding and full of information. But most people on here will agree that you need some sort of steady income or a lot of cash when starting. I have a good amount of cash for my age but no where near enough to not work at all.

I guess I asked this question as, If you had to get a job, and love real estate, is PM the best way to go or another avenue?

Thanks for your answers fellas!

Oh BP how I've missed you... So im back, and it must have been longer than I thought because the site looks totally different. (looks great Josh!)

So my title question kind of says it all. For people who are very interested in real estte especially in the investment side is property management a good place to start out in? Being relatively young still and knowing real estate is the one thing I do want to do (tried education, tried sales, tried fitness) would it be smart to get into property management?

I know people say you get burned out of it but at the very least I would learn quite a bit about how to run my own rental business without risking any of my own investments. I know the money isn't great but it would be stable and beat the sales grind. Is there a better way to go for someone who is interested in real estate and is looking for a job but is by no means pressured to get one? If property management is the way to go would you contact the biggest firms or try the local reia to hopefully find local PM companies?

Your thoughts?

Wow, that's awesome Will. You answered just what I have been looking for. I should give you the assist Mike.

I have heard a lot about finding people with self directed IRA's, but how do you find them? Surely you don't just walk down the street asking everyone if they have a self directed IRA. Would you find a lot of these people at REIA?