All Forum Posts by: Nnabuenyi Anigbogu

@Drew Millard

I would like to pick your brain if you dont mind on investing in those areas. I live in old irving and just bought a 4 unit in albany park. I really would like to invest in avondale/west edge of logan  and humboldt going forward as you can find better deals there. 

@Dyryl Burnett

One of the best ones i know of is the NHS (http://www.nhschicago.org/)

I know an acquaintance that was able to use it to purchase a 2flat with no money out of pocket and he moved in and fixed it up. He just finally finished up the second flat and the rent from that will cover the entire mortgage plus expenses. I believe they can also help you clean up your credit and they teach you about owning a home.

I wish i could take advantage of it but i am past the income threshold. Look into it and see if you qualify. There are also a couple of other Illinois specific ones that i have explored. Ill look up the info and send them to you later (at work right now)

@Matthew Krump

@Mark Ainley makes a great point. Prices for multifamilies are jumping these days. In February i was in your shoes and wanted to buy a 2-4 unit. I told myself i would wait till September when my fiancee started working to buy. However as i started following the market and learning all about RE Investing i decided to jump in immediately instead of waiting. Fortunately i had positioned myself to be able to do it without her income.

Fast forward to today and i closed on a 4 unit approximately a month ago in a multiple offer situation. The prices now compared to when i started are going crazy and i am so glad i did not wait for September. Im not saying to jump in if you are not comfortable or ready (i owned my current place so no lease to worry about) but that you should keep in mind that sometimes the market moves fast and there is no time like the present. 

Take care.

Hello @Matthew Krump

Welcome to Bigger Pockets. It is definitely a great place to learn what you need to know.

You are on the right path with the 2-4 unit purchase (my opinion lol) and the neighborhoods you listed are great for that. I currently live in the Old Irving Park neighborhood and it is a great place to live. Multiunits are not as cheap around here though.

The best thing is if you are a first time homebuyer, then there are plenty of great programs that will let you buy a 2-4 unit for very cheap and sometimes no money down (dependent on income).

I am a beginner who just purchased a 4 unit about a month ago so im not too far removed from where you are. If you have any questions don't hesitate to ask.

Take care and see you around on the forums

Hello @Dyryl Burnett

I have one idea that you can consider with a grain of salt. If you have never owned your own property before (first time home buyer) there are some great down payment assistance programs that may allow you to buy up to a 4 flat. They are usually income restricted but im assuming (maybe incorrectly) that working for CPS you will not be above the income threshold (some are up to $80,000 a year for a single person).

I assume you are paying rent and if you could convert that rent to a mortgage and get DP assistance that might be a viable way to start investing while saving up money. I know a person who did this personally while he had issues similar to yours and not much if any money.

Thanks John. You have some good points. My main goal is to have it rented by August 1'st so that i don't have to pay the mortgage by myself. The good thing is i can afford to leave it vacant to take the time to get a good tenant. I think i will try that $50 reduction first prior to going to an agency.

On the other hand i have realized that i could possibly get higher rent if i went section 8. I could potentially get 20-25% more which i believe could mitigate some of the risk from going section 8. It is another strategy that i think might work. Im keeping that on the back burner just in case.

The price for the unit is $1950. It is actually priced below other 4 bedroom units in the area. The people who have told me why they didn't go with it essentially said it was too much space. The others that came to see it never responded afterwards even though they seemed to like it during the tour and the rest (that wanted it) did not meet my qualification standards.

Im using 3X rent in income, no evictions or felonies, credit score above 600 as my base criteria. Im sure i could rent it if i drop these but ive read the horror stories on here.

Hello all,

I am currently in the process of trying to fill a vacancy in my first ever rental unit and i wanted some advice.

Unit Stats
Located in Albany Park Neighborhood in Chicago
4bd/2bth Duplex with separate living and dining room
Fully renovated with brand new stainless steel appliances and hardwood throughout (tile in basement level)

I have been marketing it for about 3 weeks now and have done quite a few showings. I am trying to see if i can get it rented for the 1st of July. I used Craigslist and postlets (which puts it on Trulia, zillow and a couple others). However the main issue im seeing is that for a unit of this size it will take longer because you either need 4 roommates or a pretty large family. 

If i open it up to section 8 im sure i can get it rented ASAP since half my callers are section 8. However i haven't decided to go that route yet and its a last resort. I'm thinking of going with a leasing agency since im tired of driving home quickly to show the unit. If they find someone for me it will be the same as finding a tenant that wants to move in Aug 1st anyway.

Any input would be appreciated. Thanks

@Matthew Koczwara

haha. That is a huuuge area. Its a good start though and then as you do research you can narrow it down

My long term goal is to actually replace my W2 income with passive rental income. My goal right now is to buy a new owner occupied property once every year (have to live in it for a year due to the type of loan) for the next 5 years. In between that i will focus on some fix and flips to build capital and also hold on to any good properties i come across. 

Living at home is great. I lived at home for a year while working and going to grad school. I saved up and bought a condo in the city (chicago) and have not paid to live since then. I bought a HUD property, fixed it up, and rented out my spare room to my friend. His rent covered 97% of my PITI + Hoa fees so i have essentially lived free for the last 2 years. I saved up all that money and bought a 4 unit that i moved into and the other 3 units cover PITI + vacancy+ cap ex + maintenance. When i move out it will cash flow since i can rent my unit out. I believe this is one of the best ways to get started.

While living at home you can also take the time to start learning fix n flip if you are inclined to do that. I wish i discovered that back then because it is a good way to build capital for the buy and holds if done right.

Looking forward to seeing your success.

@Matthew Koczwara

Glad to have you onboard Matthew. The route you want to take to get started is an excellent one. I am currently on my second owner occupied property and doing the multiunit  (4) thing.

What area are you trying to focus on? Turnkey multis are hot in chicago right now (in good neighborhoods) and its easy to overpay if you are not careful. Keep an eye on HUD and Fannie properties because owner occupants get first crack at them so they are a great way to go.

Good Luck!!