All Forum Posts by: Paul De Luca

@Madi Shanahan

First, I recommend house hacking a 3-4 unit property to reduce your housing expense & start building wealth. Once you move out and fully rent it, you should be getting some cash flow. I would use house hacking as just one tool in your overall strategy for building wealth and acquiring more rentals. Between house hacks, you could use other strategies such as BRRRRing or flipping to generate some more cash to put back into rentals.

It's impossible for anyone here on the forums to state how many units you will need to retire. There are several variables that go into answering that question such as your current living expenses and estimated cash flow amount per door.

It might be worth checking out the book "Retire Early With Real Estate" by Chad Carson to think about the right questions to ask yourself and how to get there.

@Rochelle Fernando

Avondale has seen stronger price appreciation over the long run and within the past year (10.9% YoY) while Lower West Side Pilsen is -4.3% YoY. Of course that's no guarantee of future appreciation rates but something to consider.

It's difficult to say which is a better fit for you without knowing the financing terms, condition, and projected cash flow. It also depends on your willingness to do rehab or if you prefer to get something more turnkey. Run some different scenarios with estimates of the future tax amount for the Pilsen property to see if the numbers still look attractive with higher taxes.

Rental demand in both areas seems similar as well based on median & average market time but Avondale generally has higher median and average rents.

@Drew Waters

It's still a seller's market in Chicago. Inventory is still low compared to other markets. Also, the real estate market here typically slows down in August and further slows in the fall/winter. That should be a consideration for your pricing strategy. But if it's priced close to it's market value, you should be getting some interest. Investor purchases hit the highest level (33%) in the last 5 years in Q2 this year so investors are still buying.

It's unsurprising to me the forums are quieter these days. I don't have any data to back that up, but it seems like common sense the forum traffic peaked sometime in 2020-2022 and then dwindled from there. 

With the changes in the real estate market within the past 2-3 years, I have to imagine the interest in real estate investing has declined. I'm sure that translates to fewer people listening to real estate podcasts, buying books/courses, and attending real estate events.

The real estate market is cyclical so that seems normal to me. The ebb and flow of the market.

@Thomas Barnes

Welcome!

@Ted Smith

Welcome! What are you focused on learning here specifically?

@Maya Jones

It's not necessary to notify tenants that you will be entering common areas. But yes you do need to notify tenants if you need to access their property/the premises. Consult your lease.

If the tenant is storing their personal property in common areas and that's not allowed per your lease, notify them it's a violation of the lease and ask them to remove their personal property.

@Zachary Overstreet

Welcome! House hacking is a great way to get started & build your portfolio. I've house hacked four times in the Chicago area so if you have any questions feel free to PM me.

@Anupam Banerji

Are you sure you have the units listed with a market rent? Most of the time if you can't fill a vacancy, it's because of the rent price. If renters perceive your units offer good value at a fair price, you should be getting showings and applicants.

I know some people offer concessions to incentive renters but personally haven't needed to resort to that. To see how long it typically takes to fill a vacancy in your area, I recommend pulling rent comps to see the median and average market time. Most of my units are filled in 30 days or less.

@Eric Flatt

You're definitely not alone in your struggle to find cash-flowing deals. What's your specific buying criteria though? I've been able to help several house hackers get some cash flow on 2-4 unit properties in C class neighborhoods post move-out. 

Especially with lower rates lately I have been able to underwrite some 2-4 unit house hacks that have cash flow potential. Usually need to make some improvements and raise rents though. 

I see you are including property management in your underwriting too, which will lower your cash flow.