All Forum Posts by: Michael J Scanlon

Yeah he’s phenomenal. I’ve closed something like 40-50 deals with him in the last year. He gets the investor side and even comes from investor lineage (his dad owns like 6 buildings). 

Highly recommend. 

@Riley Ricobene

I got you, don’t worry

@Sean Byrd

Potomac east of humboldt is an awesome area. I imagine it was a VA loan? If it were a traditional purchase, the numbers would all change but $600 cash flow with $0 down plus principal paydown on a building of that price is still very solid.

@Jonathan Klemm

Thanks Jonathan. I agree Elgin and Aurora are great for cash on cash return. But there are a ton of factors to consider. Elgin and Aurora have older buildings much like Joliet and parts of the city. But with that comes slightly higher cap rates to offset. Cap rates are essentially risk modulators. So it’s a complex intermingling of age, growth, current cash flows, etc.

I would consider a multifamily house hack in Chicago too! Still look for outside investments but house hack while you're young. : )

@Jake Fugman

Hey Rick, like Jake said, I’m doing basically that exact house hack right now in Wicker. I sent you a message last night so feel free to reach out and I’m happy to help.

@Jonathan Klemm is the man out there

Thanks @Jonathan Klemm

@Paul Brown I work that area daily with investors and I know it very well. Happy to help if you need anything. 

@Matthew Krueger

My first step would be to cash out refinance my 15’s into 30’s

On a 30, your cash on cash should be at least 10% and your rate, even as an investor, for residential should be sub 5, maybe even sub 4. Therefore your highest and best use of your money is to deploy it rather than putting it into your properties for now. You can actually pay off your current properties faster by switching them to 30s, buying more property and then selling the extra properties at the 15 year mark. Your arbitrage is ROI exceeding your cost of debt which accelerates your velocity of money.

That being said, with $60k, you can find some nice multifamily in Aurora/Elgin with 3-4 units around $300k with very good cash flows on a 20-25% down payment. My house hackers are cash flowing even with pmi and only 3.5% down.

It’s become pretty tough to find those in the current market but I’ll keep an eye out.