All Forum Posts by: Elbert D.

Whenever the gov is involved in anything.....it becomes inefficient and more taxes and rules are put in place to benefit them.....They are a business entity to.....

@Jameel Jason how’s it going. Are you a newbie investor? If so I wouldn’t recommend starting with a large number of units.  Also are you looking to flip as well? There seems to be a ton of people on the West Coast in places like Seattle and California  cities looking to invest in the Midwest. Chicago has high rent numbers and nice room for appreciation on properties but there’s some areas I would never recommend any investor to go. Also watch out for the taxes on properties. 

The Midwest is thriving right now in terms of good ROI and cash on cash return percentages. Like most investors who invest out of town I recommend you work closely with people who has experience within the area. In addition, also look into areas of northwest Indiana. They have a good number of areas with very nice CCR.

I personallly work with a couple of property managers and two sets of rehab guys that do excellent work, so I have built a nice system for out of state and foreign investors. So if you need any help on where to start looking to invest or have any other questions in general please let me know and I’ll do my best to help you. 

@Saumya Dash hows it going, I can assist you in looking for great cash flowing properties. Its good that you are open to some things. What type of Cash on Cash return are you seeking? Usually 10% is the baseline. IMO If you want strong cash flowing properties, I would not look into North Chicago because things are too expensive. THE CCR is usually about 5-6% compared to 11-15% in a decent area on the west and south side of Chicago. I tell many investors from California and other states that arent in the Midwest, the key to having a successful transition into buying and holding here or flipping is building a team. I would strongly recommend using a property manager for buy and hold. There are many upsides and downsides to investing here, but with risk as many successful said before....its only risky when you dont know what your doing.

PM me and I can give you a full list of details of honest facts and my opinion of investing in Chicago. Its really not bad but there are a few areas you want to stay away from. Chicago is so big and the city has man suburbs that are pretty good cash flow areas too. Always pay attention to taxes when your looking at rental properties in Chicago because they will kill your cash flow if your not careful. 

Also, dont sleep on Northwest Indiana as well. Its literally next door to Chicago and considered an extension of Chicago south side suburbs and you could find high cash flowing properties in Indiana as well. The expressway takes you right there. Taxes are low, laws favour the landlord and overall since your a newbie I would kind of point to Indiana first but its up to you. You can get 2 or 3 properties that cash flow very well with 250-300k. This includes rehab! Its many ways to go about getting set up with either state. The key is having a team and people that you trust.

we are about half way thru the month of December I hope everyone has started their plans for the New Year. 

lol it’s funny....it seems as if a thread like this pops up almost every other week. Illinois will be fine. Overall the Midwest is a great area to invest in. Me personally I focus on Chicago(south, west and north sides along with their suburbs) and northwest Indiana which is basically an extension of the south suburbs of Chicago. It really depends what type of return your looking for. If you want 20% ken higher as a flip then there are certain areas you can’t fix and flip in because the area isn’t for flipping because of various reasons such as the purchasing price and the comps that’s go in that area. 

If you want nice cash flowing areas I personally wouldn't recommend anyone to look for cash for up north. Not saying it's not possible but just rare. I seen 5-7% CCR which If that's ok with you then there are several of those that you can find. But you could go to a decent area on the south and west side and get a property to cash flow at 12-15% CCR.

So as others have mention. There is still a ton of opportunity here in Chicago and other places in Illinois at well. Don't sleep on Northwest Indiana by the way. There aren't as many available properties there because they are gone so fast because of the much lower taxes and laws that favor landlords. Not to mention high cash flow. I came across several properties which had 14-17% CCR!!!! All one would need is a good property manager to place a good tenant in. I know some good ones for Chicago and Indiana.

with 30k. I'm not sure how the houses are in New Jersey but I would buy in a safe but cheap area. I would learn everything I could about fix and flips and buy a loan/mortgage from HML and find the best rehab crew for the Best dollar value. Then I'll flip a house that doesn't need too much rehab work. Put it back on the market for a quick sale(hopefully you did your DD on DOM and it isn't longer than 60-75 Days) hopefully your profits is about 25-40k I feel you didn't your numbers correctly. Then I'll get a house hack going in a decently price area and collect rent. While I'm doing the rehab I'll live with a friend or other relative. Temporary pain for long term pleasure. ^__^

I personally like Quartz. For my personal places I pick quartz especially black. It looks so good to me. Granite is nice too but I’m giving the nod to Quartz. Both can be high end rehabs. 

I humbly aspire to be like @Jay Hinrichs and other big investors on BP. I’m growing everyday. 

PROPERTY DESCRIPTION

-Great cash flow opportunity in South Deering. Brick single family in a nice neighbourhood with 3 bedrooms, 1 bath. Entire block is full of brick houses of similar structure and upkeep. House is already in great structural condition and the rehab is mostly cosmetic. A full driveway is a great amenity, close to Olive Harvey College, CTA bus station building, and a police department is close to ensure the neighbourhood’s safety. Very close to the Bishop Ford expressway for added convenience to travel towards Downtown Chicago. Great cash-flowing property!

Price: $53,000

Rehab Cost: $30,000

ARV: $115,000

Cash on Cash Return: 11.5%-13.5%

Rent: Can receive $1250-$1300 for rent, if placing a section 8 tenant is there can receive up to $1450 for rent at 13.5% CCR!

PROPERTY DETAILS

• Bedrooms: 3
• Bathrooms: 1
• Square Footage: 1054
• Year Built: 1954
• Type: Brick Single Family
• Basement: unfinished
• Garage
• Heating: Forced Air
• Cooling: Central A/C
• Water: City
• Sewer: City
• Amenities: Full Driveway
• Taxes: $1,969

REPAIRS NEEDED

• Medium rehab
  
• Hardwood floors sand and stained
  
• Kitchen needs new cabinets, kitchen faucet and counter top, kitchen appliances.
  
• Bathroom needs a medicine cabinet and sink faucet
  
• Replace AC Unit
  
• Replace furnace
  
• Vent doors on air ducts in the house.
  
• New light fixtures throughout entire house
  
• All bedroom doors need to be replaced
  
• All New closet doors
  
• Replace some baseboard in the house
  
• A garage fascia
  
• Power wash garage and paint garage
  
• New garage doors and remote
  
• All new light fixtures throughout house
  
• New screen and storm doors
  
• Entire house needs painting Paint front of the house
  
• Very light landscaping

COMPARATIVE SALES

-Please reach out to me for them

TERMS OF SALE

-The highest Cash Offer will take the deal. Do your due diligence before contracting. Send in Proof Of Funds along with your Offer. Cash Offers will be favored.

We have equitable interest in the property and we are selling our contract.

• Do your own due diligence. The info listed above is to the best of our knowledge Cash or private/hard money only
• Buyer pays ALL closing costs which include Transfer taxes, title insurance, and title company fees
• Buyer will receive taxes prorated to 100 percent and free and clear title
• Proof of funds required for viewing
• The first investor with a signed contract and earnest money gets the deal
• This is an IRA Qualified investment
• Our licensed, insured and bonded contractor will do the rehab for you if needed

*DISCLAIMER: This information is deemed reliable but is not guaranteed

PICTURES

https://www.dropbox.com/sh/jr2b5eneqto8w5y/AAAIEoF...

CONTACT DETAILS

Elbert

Phone: 773-401-7321
Email:

@Joseph M. They really are. The cash flow is great on a lot of Indiana properties. One thing to pay attention to is the basements(if they have them) I have came across several properties that basements had issues with them that looked ok in the pictures. Fixing leaks in basements can really become a pain adding a large sum the rehab cost. 

But then again it’s actually funny because the same can be said with some of Chicago properties. The point is that you have to go see these houses yourself and not buy just because of pictures. Or have someone you trust to go see the properties.....