All Forum Posts by: Michael Pelant

What are some general surface indicators of a strong rehab project? I am talking indicators that could be seen from advertisement pictures or a simple quick walk through of the property. What do you look for in the neighborhood and surrounding area?

Thanks for all the quick feedback everyone, much appreciated and many great points made. My true investment goal is to buy, remodel, and hold to generate passive income. I have been told by many industry professionals that holding is simply the way to go. "Only sell if forced to do so" is a common phrase I have been hearing. I currently reside in Chicago, seeing as I attend DePaul University. That being said, my family is from a small city north of Chicago. My initial plan was to invest in a Wisconsin property, closer to home and presumably cheaper than a Chicago rental. I have been looking at several communities but am having some trouble deciding on which region would appreciate best, while still maintaining the return I need. Does anyone have any recommendations for Wisconsin cities to invest? In my opinion, I think it would be smarter to invest in Wisconsin over Chicago for my first deal, and then transition into larger markets once I have more experience under my belt. Thank you all again for your input!

Hi All, Just for some background info, I am a 22 year old college student with a bank account representative of your average college student. I have approximately 3 years of experience in real estate, initially working with a large property management company in Chicago and transitioning into retail brokerage. I am a licensed broker in the state of IL and am pursuing an MSRE degree. My father has extensive knowledge in development as well. That being said, my brother and I have a whopping $25k to invest in real estate. My first question, would you recommend a traditional (20% down) mortgage or possibly an FHA loan that would allow for approximately 3% down? What qualifications must be met to obtain an FHA loan and does this correlate to much higher interest rates? My second question, what are the pros/cons of investing in commercial real estate as an initial investment? Obviously increased capital requirements will be a concern, but from my limited experience, commercial RE seems to be just as stable and way less of a headache (no calls at midnight about a clogged toilet, etc). Any additional tips or recommendations would be great. I am eager to get started, I just want to clarify certain aspects before jumping into the deep end.

I am wondering what methods you guys use for assessing the strength of a communities rental market. Are you using STDB.com or Esri? Any insight would be great, as I have had some difficulty assessing how easily I would be able to lease residential units in certain areas.