All Forum Posts by: Aaron Mikottis

@JD Martin - nope, $24,500 was all in. None of the major systems are due for replacement in the immediate future. Definitely lucked out because the list price was $60k. Long story, but the short version is that I hit a snag with my financing and the bank really wanted to get this off their books. They came back to me with a cash price and I accepted. (cash price was about the same as the down payment I was expecting...!)

@Chris T. - thank you! I am definitely looking to cash it out for at least one more property, hoping to get enough for two down payments.

Hi everyone - I have finally hit a major milestone and I wanted to share it with this community. Over one year and three failed contracts later, I have finally purchased an investment property, fixed it up, and rented it out. 

Full album here. I had an uploading issue this morning with the upstairs unit but I will add the photos to flickr later tonight.

The numbers:

Property Type: Two-flat in a quiet neighborhood on the west side of Joliet, IL. Elementary school across the street!

Purchase Price: $20,000 Cash (It was an REO)

Repairs: $4,500 (consisting of windows, minor plumbing, and cosmetic issues)

Rent: 2/1: $700/mo. 1/1: $650/mo

Getting ready for property #2!

@Nathan, I know exactly what you're talking about. There's some really nice historic houses in that belt. I felt like the area was totally fine but my realtor looked at me like I was insane.  

I guess it just depends on what you're comfortable with. Because I'm into urban exploring I'm crawling around in areas like Englewood and Roseland all the time. I have a hard time batting an eye at any of the neighborhoods in Joliet, but I suppose from an investor's perspective your mileage may vary.

If we are talking about generalities, the West side is considered desirable whereas the east is considered undesirable. Take a look at the location of our housing projects, however, because there is a band along the river on the west side that is a little rougher. 

Here is a link to the map I made when I first started looking at Joliet. The orange areas are places I would like to invest in based on a metric I made up trying to find places with a good rate of return while still being in reasonable areas. Now that I know the market more there are more places on the west I would absolutely work in... But you're gonna have a harder time getting a 1-2% deal there. And there's a few east side areas I'm more leery of now. So basically, use this as a launching pad but do more research.

https://drive.google.com/open?id=0ByqwQQCenUK7SFFwOEd4aktRcjg

Hi Christopher,

I invest in the Joliet area and I think that it's fantastic for job growth right now. Property taxes are a little high and the school systems are not the best, but overall it's a strong rental market. Average prices are low, but you may have a hard time hitting that $80k mark unless it's a beater in a bad area. I'd say off the cuff somewhere more around $100-120k would be normal.

Let me know if I can be of any help.

FINALLY closed on a duplex. I'm going to be working on it all week to get it on the market. I'll make it back out for a WIN event soon!

I've also got a two bed on the west side I'm looking to rent by October 1st. Send me a PM and I can get you details and photos.

This looks right up my alley but I'm going to be caving in central Indiana that day. 

Next time I see you I'll officially be an investor! Closing on my first duplex in eight days.

Hey David, I'm about to close on my first property in Joliet. Welcome to the community! May I ask which neighborhood you are from?

Before you decide on any rehab plans I'd recommend you dive into some research. The Millionaire Real Estate Investor by Gary Keller is a great nuts and bolts book that got me started thinking in the right direction. Bigger Pockets is also a great learning resource - if you haven't started on the podcasts yet I'd give em a try. 

@Patrick Mueller - I do not own any property yet. Had several deals fall through for various reasons. I am very much interested in Joliet, not so much DeKalb. I believe that there is a very strong rental market there with great job and population growth.