All Forum Posts by: Michael J Scanlon

Its tough to predict but I think we will see a lot of people in financial trouble due to not realizing how their forbearance works. Some banks backloaded forebearances onto the end of the 30 years. However, many banks have stipulated that you can have 3 months off, but in month 4, that month plus the prior 3 months are all due at once. So if your mortgage is $2000, by month 4 after 3 months off, you'll owe $8000 at once. This will lead to a lot of distress and ultimately opportunity. 

It depends area to area. For example, I work the Chicago market. Overall, Illinois is declining in population. However, Chicago is seeing a lot of young professionals living in the city while the older generations are living in the suburbs and leaving the suburbs. So specific areas around Chicago are growing. The inner parts of the city are too expensive but areas like West Town (where I own) have gone up 181% since 2000. (USA.com). The area just to the west of West Town is called Humboldt park and that is right in the path of progress. There have been multiple rallies of tenants that are lower income complaining that they can't afford the area they were raised in anymore. I'm seeing similar growth toward the south if you stay east of the highway. Areas like Bronzeville and Hyde Park are along the train lines from the city and offer similar amenities at better prices. Plus the Obama library is coming into Hyde Park. Yes, we have higher property taxes and tougher landlord tenant laws, but there is still plenty of money to be made here in pockets. 

The main point is that there may be a better overall market if you invest in the southeast but you can still find great pockets in midwest cities and it requires the local knowledge of someone who lives/works there. 

That's a very tough question. It depends on a large amount of factors from differences in macroeconomic trends to job trends, population growths, etc. 

That being said, people are moving into the southeast so finding good cities in the general southeast quadrant of the US and comparing those can be helpful. 

I'm not sure if dealmachine does, but Remine does. It's a tool I have access to as a realtor here in Chicago. If you would like to chat, I might be able to help. Send me a message. 

I think we may naturally see a rise in it regardless of young people because baby boomers are getting older and retiring. The amount of people in the retirement age range increases every year. Ultimately you still need to find these sellers but I don't see any reason it would slow, but I could be wrong. 

Alignment of interests is pretty important. Just always talking things out and making sure you're of the same mindset moving forward. I've definitely had minor disputes over how we finance things and which direction go in rehabs but ultimately you have to compromise and make most decisions based on finance. 

What rents are you getting? 

Great job. Your lead gen seems to be working based on what I'm seeing tonight. 

Hope this one works out. Why not BRRRR? I know Chicago Heights doesn't command high rents but you could go 75% LTV, cash out with no money in and tax free income from the refinance and then have no tax hit from the flip sale plus all the advantages of ownership. Either way its a great deal but I'm just curious about the flip route vs BRRRR.

Great deal! Well done. Should be a good investment for the end buyer too as Pilsen is staying hot.