All Forum Posts by: Shawn Q.

Welcome! I'll be honest - though I live and invest here I wouldn't be eager to jump into the Champaign/Urbana market at the moment. While the market is strong at the moment, it is still in Illinois. I expect in the next 5-10 years (because of debt problems in the state, county, and local economies) for taxes to continue to increase. Champaign is overbuilt already, and more developments are still being approved. Eventually the economy will slow, rates will go down, rents will decline (as the new building vacancy rates increase forcing developers to lower their prices), and state/local taxes will continue their upward march. We currently enjoy a good/fair market, but I think there are many potential threats to be aware of. 

If I were out of the area I would be looking at Indy and the collar counties there, and St. Louis and the collar counties there, particularly on the Missouri side. Happy to chat if you'd like, but thought I'd put my analysis out there. 

Welcome to BP! Jake is right in that there are almost as many strategies as there are people interested in investing. Luckily it sounds like you have flexibility in your situation. If I were in your situation I would listen to Craig Curelop on the podcast episode 252, as in a very expensive market like Seattle you're going to need to be more aggressive/less comfortable. 

Also, I would start shopping lenders right away. They'll be able to tell you if any credit repair is needed (which I'd also do right away) and how big of a loan you can get approved for. Your income will dictate how much of a property you can buy, and thus what you end up shopping for. All-in (PITI) a $2,200 payment won't buy much property in Seattle. Yes, you'll be looking for income above what you're paying for rent, but you could easily be looking at a $500K+ purchase price, so before looking you want to know what the lender will allow given your income.

 Ha! Even worse than I initially mathed then!

I got this email as well. No way am I paying for their service - it just doesn't create enough value. And sure as hell doesn't create $120/yr in value. 

Both share the challenge of being in the state of Illinois. The state is experiencing net population outflows, and there will likely be a corresponding increase in taxes over time. An unbalanced state pension system and the need to undo decades of mis-management are also current and future stressors. 

Bloomington I believe (though it's been a while since I checked population details) is shrinking, like the rest of the state. Even with a static number of units means downward pressure in time on rents. State Farm is far and away the biggest employee in that area, and I imagine they're going to continue their footprint in that market, or at least you need to factor that into your long-term calculations. 

Champaign is (again, if I recall correctly) growing in population, but slowly. However, it is being wildly overbuilt in student units, particularly at the high end. That's going to put downward pressure on rents, and upward pressure on finish as students come to expect more. That does create opportunities in non-student rentals, but those are challenged as well. A particular issue (as John Boland mentioned in the 'Where to start investing' thread) is that there's a shortage of midrange SFRs available. That creates another opportunity to fix a lower-end property and market as low mid-range, but that may be a bit more time or money intensive of a strategy for most. 

As everywhere, there are challenges and opportunities in both markets, but Bloomington and Champaign are going to take more work than some other non-Illinois areas to ensure you're in the right deal. 

I live and invest in Champaign, and you're right about the market challenges. However, there are still opportunities if you're patient. If I were you I'd at least be BRRRR'ing with my personal residence and/or house hacking to keep home-market exposure. Your access as an agent would allow you to find some diamonds in the rough too - they do crop up not all that infrequently.

As for your larger question - that will depend on your goals. Are you looking for cash rentals, a safe(ish) place to park your cash, or are you needing principal growth? Personally I would split the funds into thirds. One third would go to a nice 2-4 unit in Champaign to house hack or BRRRR. Depending on the size of the inheritance I would take either one or two of the other thirds and invest in a managed investment property in St. Louis or Indy (or another reasonable driving distance hub nearby). This would have the dual benefit of spreading your risk and getting your money out of Illinois, and giving you a tax-deductible reason to travel to (and fly out of) a hub city nearby. From your post it sounds like you're starting your career and I've found considering deductibility of expenses can be a valuable perk in the early stages of investing. Happy to get together for coffee if you want to chat more, and good luck! 

Welcome! I think your plan is a good one, though you'll need to be patient to find the right deal. The Champaign and Bloomington markets are both challenged for different reasons, and you'll need enough meat on the bone to stay defensive for coming challenges. Feel free to reach out if you want to chat - I'm always happy to meet with new investors. 

Welcome! If I were starting over again I'd definitely be house hacking. I did it for a few years on my last property and it's an awesome way to build wealth!

I'd be curious as to why you're looking in Illinois. If I didn't live here I wouldn't invest here. We have net population outflow in most markets and the tax situation is likely to go from bad to worse over the next 5-10 years. Just curious what your market analysis indicates as the short, medium, and long term prospects driving you to Illinois. I'll add some links below for articles on the net outflows for the state - should help in targeting those areas (like Champaign as Anna mentioned) that are at least population stable in stead of shrinking. Another note - I would avoid Champaign for now. We're putting on waaaay too many multifamily units these days and I think that's going to compress rents for the next few years and ultimately make the market less attractive. 

Links here and here for some interesting info on population. 

I'm visiting my mother in Pompano Beach next week and there's some work I'd like to bid or even have done while I'm there (if the timing works). I need a handyman to fix a small through-window leak from the outside and reinforce a corner of the Florida room (some damage at the top of the jalousie windows without removing or damaging them). Might also remove a drop ceiling in the kitchen and add a light/fan, and/or re-grout the step-in shower in the back bathroom. Those last items would depend on cost (I'm just starting my real estate journey, so I don't have money to burn). 

We also need a bit of a cleanout/labor at my uncle's condo down the hall. He has a bunch of broken furniture and stuff that needs to be curbed. Then he'll need a deep clean, then someone to level his concrete floor and install some new flooring he has on hand, then clean again (it's that bad). 

So, any recommendations for a good reliable handyman and a housecleaner that aren't too wildly expensive in the area?