All Forum Posts by: Scott Swanson

Tim,

Just click on the link and it'll take you right to the county website. Type in the address and It will show you the exact amount of the taxes. Trying to "call" Cook County is like trying to call the White House! Hope this helps. https://cookcountypropertyinfo...

Michael,

Who said you need $100k for a good deal? We have sold sfr's for much less than $100k and the investors get anywhere from $1000 to $1400 a month in rent. So they cashflow very well! What cities and states are you interested in investing in? Also, are you familiar with subject 2's? If not, I would read up on them. I have found quite a few deals for my investors through subject 2's. They're not the easiest deals to find, but they're out there. Basically, you take over a tired landlords house. Everything is your responsibility. You give him a down payment of maybe $2000 to how ever much and then you take over all the responsibilities of the property. You make monthly payments to him and then you rent it out. Obviously the payments have to be less than what you charge for rent. You can also agree to purchase the property from him within a specified period of time. There's more to it than that, but subject 2's are a great way to get into the market, with little money. Best of luck. Message me if you'd like to know more. Best of luck to you.

A comp 2 miles away in Gary, is way too far. Areas change there very quickly. Sarah probably knows that. 

Austin,

IMO, you don't need to save another $100k. If you want to finance your properties and put down 25%, you could get 3 to 4 properties, depending upon their price. However, I strongly recommend you don't drain your savings! Having an emergency fund is critical. You can get sfr's in certain cities in Illinois and also Indiana, for somewhere between $75k and $100k and rents between $900 and $1300 per property. So the profit margin is substantial and they are NOT in bad neighborhoods. Those purchase prices include the rehab costs. So that equates to a down payment $40k or less. You could also get a duplex anywhere from $100k to $160k and rents between $1400 and $1600. That's approximately $45k down. The key is to find the "correct" properties or have someone assist you with that. I hope this helps. 

Becky and @Kristen L Garner, There is only a small area in Gary, that's worth investing in. It's called Beverly, or Beverly Shores. Those homes are upper income and many are on Lake Michigan or very close. Trying to purchase one of them at a good price, is going to be very difficult. But I would strongly suggest you stay away from Gary "proper" for any kind of rentals. The city is NOT getting any better! Best of luck.

Bryce, I'm with @Troy Brown. use a warranty deed. Do you know for a fact that there's no liens on the title or any issues with it? A quit claim deed will make you responsible for any issues that might be on the title. Best of luck.

Hank,

Typically, the Craigslist posts in Illinois and Indiana, are wholesalers selling overpriced junk. Finding good deals right now is tough everywhere. Finding off market deals seems to be one of the best ways to find a deal. However, that's a lot of work and it takes time. But there are deals out there. It takes patience and a lot of research! There are properties available in Illinois and Indiana starting at around $75k, with rents anywhere between $900 and $1200 a month. So the cash flow is very good. But you have beware of taxes too. That can stop a good deal in it's tracks. It's stopped us many times from buying rentals, because the taxes just eat up your cash flow. I would suggest you network with "quality" wholesalers in the area you want to invest. But since you're looking out of state, make sure they have the boots on the ground you need, to invest properly. You'll need a contractor, a property manager and someone to visit the properties, that can take pictures and calculate the rehab costs. Turnkey properties are another option, but I would be extremely careful with those. I don't know how many turnkey properties we looked at that were not even close to being turnkey "ready." Many of them just put lipstick on a pig and then you have some real problems on your hands. I hope this helps and best of luck to you. 

Hi Josh, in my opinion, with prices being as high as they are and the market so tight right now, you might want to start by getting yourself a reasonably priced rental and build up cash. Once the prices come down, then maybe take a look at a flip. But it's obviously your decision. Remember too, that typically your rehab costs are higher, when you're flipping a house versus a rental. So your cash outlay is usually less. We just sold a 3 bed rental for $65k and that included the rehab costs. The rent is $1200 a month. So if you run the numbers, the return and profit is very high. After all expenses, but not including a mortgage, the net monthly profit is over $700 a month or $8500 a year. It also comes in at 1.85% of the "1%" rule. Maybe do your best to save the profit from the rental and use those funds down the road for another project. You can also refi out of the rental after 6 months or a year. So now you would have the monthly profits saved and can add that to the refi funds you receive and be well on your way to doing a flip or just use the BRRRR method for another rental. I hope this helps and best of luck to you!

Hi Elaine, are you from Canada and investing in the states? Because that will make a huge difference when borrowing money. 

Patricia,

The tax sale starts November 10th. So time is of the essence, as you have to register to be able to bid. If you try to call Cook County, you might never reach a human being! You can go to the County website and find out if it's on the tax sale and it most likely is. Here's a link to the assessor's website. You can look up the property either by the PIN number or the address.  Best of luck.  

https://cookcountypropertyinfo...