All Forum Posts by: Seth Coronis

Thanks for the responses, this helps a lot. 

Hi, my name's Seth, I'm new to BP and a real estate investing virgin. I'm considering trying my hand at investing in rental properties in Chicago. Looking at hypothetical investment properties on Zillow.com (just to start getting an idea of what I'm getting myself into). After doing the math formulas described by Brandon Turner of BP, It seems like the only safe way to invest in a 1-2br condo and rent it out is to pay cash for the condo, because sky high property taxes plus a mortgage would cancel out any profit. 

What I'm looking to do is minimal work, so not really "house hacking" but rather using let's say $800,000 liquid cash to buy a handful of condos (possibly making small updates to counter tops/cabinets/appliances/hardwood flooring) and then renting them out. 

The math I've done points to between 4.5% to 6.3% ROI, not accounting for year on year appreciation.

Anyways, my question is, how do you make a profit on rental properties in Chicago without paying cash, and in your opinions, would spending $800,000 cash on say 5 properties be an idiotic move to get going in real estate? What are the pros / cons of using a loan vs paying cash? Any and all advice welcome.

Thanks