All Forum Posts by: Francheska Viejon

Hello! 

I am in search of a CPA who has personal experience working with real estate investors, or is an investor themselves who works in the Chicagoland area. I am closing on a property in Berwyn at the end of the month and want to build a connection with someone who can help me with the taxes on my property. 

Thanks!

Hi everyone!

Thanks so much for everyone's responses, I was not expecting so much feedback, and I appreciate all of your guidance! 

I decided to follow through with the purchase! The current tenants' rents are much lower than they should be, they also include utilities. $2400 covers 2 of the 3 units rented. So there is a lot of potential to increase the rents in the future, especially after renovations and once I move out of the property. I currently live at home with my family, so I have zero living expenses and don't currently pay any kind of rent. My partner and I will be splitting whatever is not covered by the mortgage which should be around $400-$500/person, which is nothing compared to our peers at my age. 

I am really, really excited to get my foot in the door and make this property my baby as I will be living in the Chicago area for the next 2-3 years for sure.

Again, thank you for all of your help, it really guided me through my analysis paralysis.

@Chris Seveney

Thank you for your quick response! I really appreciate your input.

I needed to hear that from someone with more experience! 

The other part of this, is that if I am to house hack, would it be a better investment if I buy a duplex that is more updated and I'd still spend about $1200 to cover the mortgage, or stick with the 3 flat that needs more renovation? 

Hello everyone! 

I am trying to buy my first real estate investing property. I am under contract for a property at $389k, I will be using an FHA loan with 3.5% down payment. This is a 3 unit building with tenants on the top and basement floors, I would live in the middle unit. The building has not been updated for some time. The rents are currently below market value and would only cover $2400 of the potential $3370 mortgage. My intention is to house hack but I would have to cover the difference in the mortgage which is around $1100. My realtor is pushing that this is a good investment and the building is good, but I'm not sure it aligns with my financial goals. Should I invest in this property if there is no cash flow? I would have to renovate the bathroom in my unit, add AC units, new paint, and a stackable washer and dryer. The other two units need to be renovated, however the tenants are long-term and on month to month rental payments.

Any and all advice would be great! I am worried that there will be no cash flow on the property and I won't be able to save up for my second investment property. Is it smart to invest if there is no cash flow? 

Thanks!