All Forum Posts by: Michael K.

Southwest corner of West Elsdon is right in the flight path from midway. I was actually under contract on a house there earlier this Spring. After we came back for the inspection we realized how oppressive the noise from flights was and canceled the contract. But you're definitely right, prices between Bridgeport and Midway are a gradient, so as prices rise further east it pushes the prices our west higher. I have a couple of people that are looking in Back of the Yards right now and I have seen flips there selling quickly. New demographic coming into any of those properties.  

Winter might not be the best time to bring your Airbnb online, the market here is still pretty seasonal and we're at the end of the peak season now. What work did you do for the flip? I know where you are coming from. In the past i've done a number of projects while living in the property and I won't do It again. Very distracting and takes away from work productivity. 

Looks like a great classic building. What are the unit layouts? and is there a garden unit already?

I find that buyers get more aggressive the more deals they lose out on. But sometimes that leads to overpaying and irrational decision-making, which aren't good either. If a person takes a long time to make a decision on a property then they probably don't have a ton of experience (or just dont have the bandwidth to take on another project). So maybe sometimes missing out on a deal is actually a good thing.  

Option 1: Pilsen, Little Village, Bridgeport, McKinley Park, Brighton Park. These areas may have some 2 flats that fit those criteria. They will not be nice or updated, but they should be livable without too much work. Those are B-C class neighborhoods. They are also closer to the medical district, which could be a plus if you want to go the travel route. 

Option 2: Condos will be easier to manage and there should be plenty of smaller (or older) units out there for under 300k in a variety of neighborhoods. Condos are harder to cash flow but you have less to worry about, which could be good based on your schedule. Condos vs multiunit = one tenant vs multiple tenants, so a month-long vacancy or a bad tenant here or there won't impact you as heavily. 

You could also get a 2 or 3-bed condo and rent out the extra room(s). but in a lot of neighborhoods, you will not be able to find them at that price point, especially a 3 bed.  

Great that you have some experience under your belt, that will serve you well. I meet lots of people who have never done a single construction project and want to start flipping and I always try to talk them out of it. You probably already know how unpredictable costs and time schedules can be when undertaking rehab projects. And when you combine that with the ongoing financing costs, flipping can be a risky endeavor. 

That said, it sounds like you have already done a "slow" flip on your condo. See what it might sell for now, and how much of an impact your improvements have had on its marketability. That might be a good springboard for your first real flip. Or just do that same thing again, buy something to live in that needs work and improve it over a longer period of time.  

Part of the initial appeal of Airbnb was that you were actually interacting with the homeowner, which was great for learning about local culture & places to visit. You might have been provided some basic food or even a full meal. BnB means bed AND breakfast, right? Have people forgotten this?

Growing pains aside, private home rentals do provide value that hotels can't - so they are definitely here to stay. I think the over corporatized airbnbs, where you have no personal interaction with the owner (or manager), are what sometimes gives the platform a bad rap (add lazy hosts to that list too). 

I also think airbnb should wise up and display the cleaning and services fees upfront. I'm both a host and a user and I still find it annoying when the price doubles by the time you get to the payment page. 

@Sal Grimaldi Inventory is still super low and higher rates are neither good for buyers or sellers. So I wouldn't expect a flood of homes to hit the market anytime soon. That said, I was just looking at multiunits in that area this morning (my wife wants to move us to the area long term) so there is definitely stuff out there. What are your search parameters?

@Aishah B. I'm guessing this would not be a primary residence? Are you willing to consider properties that require work? Most multi-unit inventory that hits the market needs work. With 200k in cash, you could put 100k down and leave the other half for improvements + repairs. 

Generally speaking, turnkey-ready multiunits are hard to find and when you do find them they typically have low cap rates, especially if they are in a good neighborhood. I'm not sure what your expectation is on cash flow, but that's something to consider. I think you would definitely stretch your dollar further if you are willing to pick up something that needs some TLC. Hope that helps!

Hi Anthony, I suggest looking for a boutique firm that might specialize in this. Most large firms are not going to have someone set aside who can teach you wholesaling, but you might be able to join a team at that brokerage that does wholesale deals. Apart from bigger pockets, Linkedin might be another good place to search. You might also consider getting some experience under your belt as a regular realtor before trying to get into wholesaling. That way you can start to build up your network.  

What made you want to get into wholesaling?