All Forum Posts by: Kamil Kaczmarczyk

@Kamil Kaczmarczyk You received some great information above from @Benjamin Matthews above. I would add to that, as soon as you are seriously considering a property or two, get a no-cost engineering based cost segregation pre-analysis/estimate. Two properties can look equally attractive until you find out one will give you far more in tax benefits and the resulting cash flow than the other. This can have the effect of "go or no-go" decisions. 

Agree with Barry, become really good at understanding the fundamentals of commercial multifamily real estate underwriting and financing criteria. When I was trying to get into commercial multifamily real estate, I found local players place all kinds of barriers and try to convince me I cannot do it without them. They wanted me to believe the only way in was through syndication - but that is not true. You are on the right track, start with something small like 5-8 units. I do know that this kind of mix may not be available in your local market, so go out of your area if you feel comfortable.

@Kamil Kaczmarczyk I think investing in a local apartment building is a very good way to invest. Chicago has so much great inventory. The inventory on the NW side won't be "cheap", but you can get some amazing tenants. I think one important thing to point out is that 5 and 6 units are taxed like houses (residential) whereas 7 or more units in Cook County are taxed as commercial. 

In terms of management, if you can pick up a nice six unit you will just need to find a local handyman to help with minor repairs. Over time, you build your relationship with your handyman and it gets easier and easier.