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All Forum Posts by: Jacob Lopez

Jacob Lopez has started 4 posts and replied 23 times.

Post: Running Cash Flow #s by the Four Square Method - Deal or Bust?

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15
Quote from @Robert Rixer:

I've said this a number of times before, house-hacking sounds good on paper but rarely pans out as people expect. Namely high prices compared to returns in multifamily and also high interest rates. The biggest thing that few people talk about is the ideal investment property and the ideal place to live rarely overlap. You will almost always sacrifice one for another. I would bet you could make house-hacking numbers work in an the absolute worst neighborhood in your city, but chances are you're not willing to live there. 

Hello Robert,

Grateful for you spreading some wisdom on my post here. I think you bring up a great point about being realistic on what sorts of goals one should or would want to achieve through investing in real estate. At the moment, properties I can afford are in the not-best areas, which I am vehemently refusing to live in, hence the unlikelihood of finding a property I may cash flow in.
The search continues!  

Post: Running Cash Flow #s by the Four Square Method - Deal or Bust?

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15

Hey BP Community,

I have been diligently running cash flow and Cash-on-Cash return #s from many duplexes and triplexes in the Chicago and Chicago suburban areas. To my dismay, I have found that as someone who wants to live in one of the units (house hack) that significantly reduces my cash flow to next to nothing, or to nothing, or even negative earnings. 

BP Community - is this the best way for me to be running these #s, or is this just the new normal and the "live for free" model has slowly disappeared? 


Thank you!

Post: 203k Purchase and Gut Rehab of 4-Unit Building in Chicago

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15

Hello Gabriel,

Overall, if you were to achieve your goals of completely rehabbing everything for this property you just listed at the lowest price possible - this could be an ideal investment.

Logan Square is a good location in Chicago, and you would have a ton of leverage in upping the value quite a bit would you ever be interested in selling? But as with all properties you're looking at buying, really make sure you run your numbers and ask yourself if this is something that you can commit to. If you feel as though this is a summit you can surmount, don't let analysis paralysis stop you - jump in and get to work! 

Post: 1st Time Investor - House Hack Multi-Family Unit - Worth it to buy ASAP?

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15
Quote from @Diya Shenme:

There are potential tax benefits associated with house hacking. Expenses related to managing and maintaining the property may be tax-deductible. 

House hacking provides flexibility in terms of lifestyle. It allows individuals to live in a desirable location, potentially in a larger or more expensive property than they could afford if not for the rental income.

Hello Diya!

The points you have brought up are some of the reasons why I know that househacking would be an ideal start in my real estate investing journey. 
The trickiest part at the moment is finding an ideal spot (looking more at the Chicago suburbs) which itself will come with its own pros and cons: higher taxes, higher property prices, etc.

Thank you for taking some time to give me advice on my post! Best wishes! 

Post: 1st Time Investor - House Hack Multi-Family Unit - Worth it to buy ASAP?

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15
Quote from @Jonathan Klemm:

Hey there @Jacob Lopez - Generally speaking, I think every real estate deal is a great deal, IF the numbers make sense for your situation.

Naturally, ALL real estate like the stock market goes up over TIME but different from stocks you don't only make money from appreciation but also cash flow, debt paydown, and tax benefits!

I think like @Paul De Luca pointed out...it's hard for us to speak to your specific deals if we don't know all of your numbers, your criteria, and your exact situation.

My opinion would be to go for it!  Because the key to getting ahead is getting started and there is nothing that will replace experience.  Just make sure you have the right Chicago team around.


 Hello Jonathan!

I'm grateful to also have such an array of experienced RE investors, agents and even contractors chime in on my little post.

I am incredibly eager to pull the trigger and purchase my first property, but from the responses of the amazing members here - I think that I still need a little time to educate myself on what exactly I should expect and or want out of my first property. 

There is nothing that a little more time and a little more money saved up couldn't help, right? 


Thank you! 

Post: 1st Time Investor - House Hack Multi-Family Unit - Worth it to buy ASAP?

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15
Quote from @Paul De Luca:
Quote from @Jacob Lopez:

Hello BP Community!

I have recently located an ideal MFP in the Chicago suburbs (Bellwood) that I would like to invest in. The property overall is in nice shape with some work needing to be done on replacing carpets, some painting, and or replacing wallpaper (at least from what I could tell from the MLS photos).

The property is listed at 250K, and with some TLC on the units I could charge a reasonable amount for rent of the other unit I will be leasing to someone else.  

Even though this is not a full analysis of my research on this property, would this be a good investment regarding the condition of the property, the location, and the quality of tenants I may be able to attract? 


You can't answer the question "is this a good investment?" without assessing the condition of the property and quantifying the projected return. Bellwood is a C class area, is close to 290, has a metra stop, and isn't far outside of Chicago. But the specific neighborhood also needs to be considered. 

What kind of return are you aiming for? What kind of tenants are you interested in having? How much cash do you have for a down payment, closing costs, and potential repairs? Does the property have city violations? These are all things to consider to decide if it's the right investment for you.

The property is priced on the lower end of the spectrum for a multi-unit.

Hello Paul,

Thanks for the insightful response on my post. 

I understand that not all of the numbers are there for an actual thorough analysis of this property - but overall the property seems to have most checkboxes ticked off for me in terms of my first-time purchase. 

Despite this realization, I will make sure going forward to give more thought on all of the questions you have listed above to ensure that this is right for me. 

Post: 1st Time Investor - House Hack Multi-Family Unit - Worth it to buy ASAP?

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15
Quote from @Jake Fugman:

@Jacob Lopez The price point sounds reasonable if in solid condition. Outside of Chicago city limits you need to watch out for the property taxes - which even in suburban Cook county can be 40-80% higher VS Chicago addresses. Make sure the current assessed value is w/in about 25% of actual market value or you will have to underwrite in a decent property tax bump w/in 1-3 yrs. Your agent should be able to help you run some current VS pro forma cashflow #s to make sure it meets your ROI expectations. The gross income is the largest "lever" you can pull so make sure its realistic/accurate.


 Hello Jake,

Thank you for your timely and thoughtful reply. You honestly covered a factor that I had initially overlooked - which is the wide range of property taxes within Chicago limits and the outer Chicago suburbs. 

Going forward I will ensure to add that to my checklist of high-priority numbers to run before even considering looking at a property. 

Also - could you elaborate on what "pro forma" cashflow is? I may just be getting my terminology mixed up on that. 


Thanks! 

Post: 1st Time Investor - House Hack Multi-Family Unit - Worth it to buy ASAP?

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15
Quote from @Jake Barr:

Hey Jacob,

I am so glad to hear that you are looking to invest in real estate. House hacking is certainly the best way to get started with this. When looking at this deal, here are my initial thoughts and questions. 

When considering a house hack deal, you need good estimates and knowledge of what your are looking for your monthly payment to be, what that payment will be before deductions (gross rents), what your monthly deductions will be, and what your net rents will be. Unfortunately, in the year 2024, the once common 'live for free' model does not really exist. This is why its important to manage expectations and really know what your end goal is.

in the right area, appreciation can offset a monthly loss and some with enough time. This brings up again the factor of rehab, and elongated rehab over many years. If you put enough work into a property and have spent 5-10 years there to gain some appreciation, you may be in a position where you could refinance and gain equity on your refinance. You can then keep this property with the equity you have now gained, or could sell the property with the gained equity, and buy something with the gained income. 

There are many strategies that can all be effective. Make sure your goals are clear and concise and you have a plan in place! Please let me know if you'd like to further discuss. 


Hello Jake, 

Thank you for your insight!  I have already tried to limit my expectations to look for properties after running numbers,  that would help me reduce my rent as much as possible - but realistically at this time, not completely. 

I also do have a game plan to utilize this golden opportunity to not only get my hands dirty with becoming a landlord, but also learn what sorts of rehab I am capable/willing to do, and what sorts I am not. For this, I will need to carefully select a reputable contractor for such work. 

If I need anything else I can hopefully reach out to you or to the great ppl in the BP community. Cheers! 

Post: 1st Time Investor - House Hack Multi-Family Unit - Worth it to buy ASAP?

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15
Quote from @Twannisha Jackson:
Quote from @Jacob Lopez:

Hello BP Community!

I have recently located an ideal MFP in the Chicago suburbs (Bellwood) that I would like to invest in. The property overall is in nice shape with some work needing to be done on replacing carpets, some painting, and or replacing wallpaper (at least from what I could tell from the MLS photos).

The property is listed at 250K, and with some TLC on the units I could charge a reasonable amount for rent of the other unit I will be leasing to someone else.  

Even though this is not a full analysis of my research on this property, would this be a good investment regarding the condition of the property, the location, and the quality of tenants I may be able to attract? 

yes, it would be a good investment. gonna need somewhere to live & others as well. might as well be ur place :) $$
Thank you for the insight Twannisha!

Post: 1st Time Investor - House Hack Multi-Family Unit - Worth it to buy ASAP?

Jacob LopezPosted
  • New to Real Estate
  • Chicago, IL
  • Posts 23
  • Votes 15

Hello BP Community!

I have recently located an ideal MFP in the Chicago suburbs (Bellwood) that I would like to invest in. The property overall is in nice shape with some work needing to be done on replacing carpets, some painting, and or replacing wallpaper (at least from what I could tell from the MLS photos).

The property is listed at 250K, and with some TLC on the units I could charge a reasonable amount for rent of the other unit I will be leasing to someone else.  

Even though this is not a full analysis of my research on this property, would this be a good investment regarding the condition of the property, the location, and the quality of tenants I may be able to attract?