All Forum Posts by: Joe Sierocki

 Appreciate the insight! This gives me hope when all I feel is nerves 

 I do agree with you, however I suppose I meant that my savings was my only liquid asset not including stock options and things of that nature. I'm also lucky to have some supportive friends and family that I know would loan me some money if I needed it and I have a very well paying job to pay them off diligently.

 Hey Aldo, this is super common with us newer investors as I'm now realizing. I'm in a similar boat as you but the key thing to understand is that times have really changed and it's hard to replicate what all of these other people have for the past couple of decades. One way I'm realizing to force more cash flow/equity/appreciation is to try and find something below market value and add value to it. Whether it be an outdated house that you can put new flooring in, trim, painted cabinets, fixtures, etc. It doesn't have to be anything crazy, but because you are bringing your own value that some people just don't want to deal with you are forcing your property to look nicer, which will increase it's value, you'll be able to increase rents because everyone will pay a premium to stay in a nicer place, and down the road when it appreciates even more you'll be able to pull some cash out and refinance if you want. I wouldn't try to necessarily look for cash flow on day 1, but moreso look for a property that you can fix up and even break even on rents for the time being. Rents will generally always go up, and when interest rates inevitably come down you'll have a cash cow! Good luck!

 Appreciate it, I am definitely trying to explore my options. I have a very well paying W2 job and am currently living at home with my dad with minimal expenses so I feel like I have a little bit of risk tolerance to feel more comfortable using most of my savings for now. As long as it's a good deal of course. Appreciate the response

 Thank you for this. This is also everything I hear and I am definitely a huge overthinker especially when it comes to this. I have been looking and educating myself constantly for about 6 months and can tell I am slowly getting more comfortable with the many ideas and strategies in real estate. Trying not to be too impatient here.

It is just outside of the ADU zoning map for the area so that's a no go. The building was built in the late 1800s though so it may be grandfathered in and be allowed to be changed into a legal 2 unit.

 I have had this pitched to me a couple different ways. My realtor has pitched the idea that down the line I can convert the rooms into a true single family residence and sell for massive profit. Which sounds fine and dandy, but it obviously comes with these unknown risks. I also have been talking to my aunt who is an appraiser and she was saying it shouldn't be a problem to get it rezoned as a 2 unit if I'm uneasy about it. I just can't tell if this is worth all this hassle as it's already been on the market for about 40 days.

 So I saw this property yesterday, and surprisingly it really doesn't need any work day 1 besides some handyman things that I'm fully capable of doing myself. That being said, it is not 2 legal units. I have been advised by my agent and lender that it's really not much of a problem and long term could be beneficial if I decide to transform it into a true single family.

Hi all, as the title suggests I am submitting an offer on a non-conforming 2 unit in the Logan Square area of Chicago. The property would be conveyed to me as vacant and after crunching all my numbers over and over again it seems like I will be about breaking even on day 1 with everything rented. If anyone is familiar with the Logan Square area, it is definitely a very popular area within Chicago with good appreciation and kiddie corner to Wicker Park and Bucktown which are two places with no properties below $1 million. I don't have a portfolio at all yet so this would be my first acquisition and I'm becoming very paranoid about the situation I'm in. The down payment alone would be my entire savings, and I'm worried about the property not performing like I'm hoping and my agent is expecting. Any advice for an overly analytical first time investor?