All Forum Posts by: Elbert D.

For everyone that is saying to me it's the simplest. I actually think it isn't. It's not hard by at all but there are many people that don't know what their doing within the business. Or they try to scam people. I'm also trying to not be biased here lol. I love reaL estate of course! But I personally think a business that your running(not actively working in if you know what I mean) is right up there if not better than real estate by a small margin. 

Usually sometimes, our able to negotiate some portion of the water bill down.....it beats some of the water bills I seen in Chicago! I have seen some water bills owed in the range of $3,000-$5000!!! 

I have a question for you, is real estate the only or best way towards financial independence?

Lima One and Renovo are very good HML for Chicago and Indiana markets! I also hear Midwest corp is good as well.

congrats @Joel Florek your pretty aggressive and from our conversations you know what your doing. Keep it up! 

hmmm......well this is a good question. It varies from person to person but I think the formula is known now that you have to transition into the business and or investor side of things. I think for you to "officially" to be recognized as an investor you have to have 200k in income and a million in assets. According to the government atleast, so the first step is to generate income high enough for those purposes. But I think going back you have to have the strong mentally to endure the pain and become discipline enough to get through the hurdles that may come your way. Running a business isn't extremely hard and you have to be discipline to become an investor. It's wins and loses are apart of the game so keeping at it will definitely test you everyday. 

For me I'll say becoming a real estate entrepreneur( wholesaling, flips, and buy and holds) and starting a technology based business is my ticket into freedom. But I have to free my mind first. So I work on myself and money management skills first. There are pros and cons to a business but I truly think that you are offering people value and solving a need you will become successful. 

@Jun Zao well for rentals, you should look at cash flow it should be your number 1 stat to look at. Appreciation is the cherry on too of the cake. What cash on cash return are you getting with this buy and hold? Are you planning on acquiring more properties in Chicago?

Hows it going @Zhou Ye I agree with @Darrin Carey especially if your into Section 8 housing in Chicago. I have questions for you, how many SFHs are you looking to acquire? Are you open to MFHs as well? Dont forget about Northwest Indiana being an extension of the Chicago suburbs. 

As far as turnkey rentals. I never seen a house that didnt need a little work. Its very rare that I come across houses that need very light rehabs as well.  The south suburbs of Chicago SFHs are generally kept up more than the ones in the inner cities, but the taxes for the suburbs are generally higher as well. Which in returns kills the Cash on Cash return. 

What CCR are you looking for?

PROPERTY DESCRIPTION

A nice “solid” brick multi-unit that’s currently cash flowing. This 4 unit is in an ideal location. The units are within a 2 minute drive to the expressway to Chicago suburbs and 45 minutes from downtown Chicago. Shopping is within walking distance and the elementary, middle and high schools are minutes away. Three of the 4 units are currently rented. These units should be renting for at least $700 per month. Three of them are currently at: $550, $475 and $475. The tenants have been there for years and the landlord hasn’t raised the rent in years. The tenants pay all utilities, except for water and trash. The new tenant for the unoccupied unit will be paying $700 a month. There is also a potential for $750-$800 in rent per unit, within the next year, because the area has a high demand for rental units. However, we would suggest you begin with $700. We used $700 to calculate the cash on cash return percentage.

As always, we will manage the property for you, if you need that service.

ARV: $225,000-$250,000

Asking Price: $180,000

Cash on Cash Return: 13.18%!

PROPERTY DETAILS

• Bedrooms: 8
• Bathrooms: 8
• Square Footage: 3596
• Unit Sizes: Approximately 900 square feet each
• Year Built: 1964
• Basement: unfinished & “dry”
• Plenty of upfront parking
• Heating: Forced Air - Gas
• Cooling: Window Units
• Water: City
• Sewer: City
• Taxes: $3316.00
• 100 amp electrical service – “Up to code”
• Utilities are sub metered for each unit
• Roof is only 8 years old

Repairs needed

• We’re estimating $3500 in repairs are needed.
• We will pay for the cost of the repairs that are listed below!
• Our crew will take care of the following repairs, immediately after close.
• Vacant unit needs painting, cleaning, touch up and either new carpeting or laminate. (It’s your choice, carpet or laminate.)
• Replace two windows
• Paint cabinets in one unit
• Trim trees and dispose of branches
• Miscellaneous clean up – Cleaning crew coming in after we paint and put in carpet or laminate. Also other small items like: a new
• light fixture, new bathroom faucet etc.
• Three of the four units will just need a typical touch up when tenants leave. (NOT included in estimate.)

Comparative sales

Here's a similar property with two 2 bedroom units and two 1 bedroom units listed for $250k:

https://www.zillow.com/homes/for_sale/Merrillville-IN/apartment_duplex_type/2120862056_zpid/19328_rid/2-_beds/1-_baths/1900-1989_built/41.573719,-87.190418,41.386984,-87.437611_rect/11_zm/0_mmm/

This particular comp is only a 2 unit, each with one bathroom.

https://www.zillow.com/homes/recently_sold/Merrillville-IN/apartment_duplex_type/99168151_zpid/19328_rid/2-_beds/1-_baths/1900-1989_built/41.572691,-87.200032,41.385953,-87.447224_rect/11_zm/

Terms of sale

The highest offer will take the deal. Please send in Proof of Funds along with your Offer. Cash or hard money offers will be favored over financing.

• $2500 earnest money deposit required. Will be escrowed with the title company
• Buyer pays all closing costs. Estimated closing costs are approximately $1200
• We receive a substantial discount on closing costs and Title company fees. If you use our Title company, we will pass the savings onto you. Attorney fees are the buyer’s responsibility. However, Indiana does not require an attorney. It’s at your discretion.
• 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

Contact Details

Please contact me by Private message, call or text 7734017321

I have tried IG Ads and havent gotten much results back....I do think there is a ton of untapped potential in FB and IG marketing.