All Forum Posts by: Larry Smet

Hi Polina

First off - congrats on finding a deal and I hope it works out for you! I just wanted to comment on one thing - you mention that you'd have 2 months to evict a tenant until you have to move in (if I'm interpreting it correctly). In Chicago evictions can take a LONG time!! Check this thread out for a number of recent experiences with the long wait time to get tenants out:

http://www.biggerpockets.com/forums/81/topics/122507-eviction-time-in-cook-county

I wouldn't count on any particular time line for getting a tenant out - it can take far, far longer than you would ever expect.

Also wanted to comment on what subsidy Section 8 tenants get - I don't believe it's a set percentage, it completely varies based on their situation. For example, for one building I was just looking at in Chicago the rent roll indicated that CHA subsidies were anywhere from 61-94% of the total rent for the three Section 8 tenants.

Thanks for sharing Polina and good luck.

Larry

Welcome @Jerry Brown

Hi @Jack Cascio

Welcome to BP. There's a number of people here who invest in Chicago using different methods. Keep us posted on your interests as you work your way through the amazing material on biggerpockets.

AMAZING! Congratulations @Brie Schmidt

This is awesome news!

I guess no more being away from home for 3 weeks, right? At least for someone else. ;)

Thank you for sharing this with us - it keeps everyone motivated.

I wanted to also echo what you said to @Alex T. - It took me over 8 months of working really hard (analyzed hundreds of properties) before getting my first property. But things accelerate once you finish the first one. The next year I completed 4 flips. Like J Scott said - he doesn't know any RE investor that only has only done one property! :) Keep at it Alex and you'll make it as far as you want to. Just look at Brianna!

Hi @John Casmon

Welcome to BP!

It's kind of funny - I have the opposite of your story - I've been flipping SFHs (mostly in Chicago) but now I plant to start investing in small multifamily properties - in addition to the flips. I'd be happy to lend a helping hand in providing advice that I've learned along the way.

Try to set up the main members of your team before you dive in. The team is even more critical than normal if you're trying to flip at a distance. And do as much due diligence as you can think of.

Your sister-in-law will be very helpful since you can get access to the MLS through her. Until you get to know an area (from actually investing there), you'll have to rely very heavily on your comps and get many opinions from your team.

Since it's very different working with an investor that a retail buyer, hopefully your sister-in-law has worked with investors - or reads the biggerpockets real estate agent's ultimate guide to working with investors found here:

http://www.biggerpockets.com/renewsblog/2013/08/24/real-estate-agents-working-with-investors/

Ideally you'll want to find an area of the city where the average days on market for rehabbed properties is fairly low for a quick resale and there is a good spread between "wholesale" and "retail" properties.

Good luck - let us know how it goes.

Larry

Welcome @Matthew Freund

After you do some digging and decide on what area of REI you want to focus on, please post so those of us focusing on that method can help you out. Do lots of reading and don't forget to ask lots of questions!

Good luck

Larry

Very cool - thanks for sharing

Hey @Adam P

I have a great inspector that I'd be happy to share. Just PM me if you haven't already secured one.

Hey @Roman Pak

A lot of people follow the 70% rule (if you search on biggerpockets you'll find many posts on the subject) when it comes to flipping. The other rough way to approach it is to subtract 10% from your ARV (to account for realtor's fees and closing costs - i.e., money you'll never see), subtract the rehab and holding costs - then subtract the profit you want to make - that leaves you with your maximum price you'd be willing to spend. Looks complicated when it's written into a sentence but it's very simple on a spreadsheet :)

Remember - those are rule of thumb and they won't work exactly in every market, but they're not bad for a quick analysis. Also, don't forget to factor in a contingency into your rehab budget - they always cost more than you think at first.

Welcome @Rick Baker

Lots of people on biggerpockets to connect with - don't forget to ask questions!