All Forum Posts by: Shannon Mogilinski

Thanks, everyone, for all your feedback... 

I saw another property in the West Palm Area.  The property seems to be in good shape and will requirecosmetic rehab.  

5/3 house 2600 SQFT

We will need a new AC, Kitchen upgrade, bathroom upgrade, flooring, painting, andcarpet upstairs.  

ARV 690K

Selling Price 500k

Rehab 85k

After closing costs, points, hard money, lender fees... My profit seems to be $20-25k.  That's only if everything goes well.  

If I'm spending 500k... my profit should be higher?  Thoughts?  Seems like a too much work for 20-25k.  

This is a very broad question. 

From a residential sales perspective, I think it will go up by virtue of life events (family formation, etc.) but it will be a wash.

Those that locked in a high 5% to low 6% interest rate in 2022 will now be gearing up to move because they aren't locked into their rates like those in the sub 4%. The problem: Yes they will buy, but they will also sell, so it becomes a wash in terms of supply and demand. 

I'm still gearing up to buy more hold properties. That's just me though. But I will say I am and going to be extra conservative going forward. The cost of maintenance is gone up so high there is no margin. Just to trim a massive tree on one of my rentals is $4,750. That's 5 months of profit gone just because the insurance company wants it done.

@Shannon Mogilinski

Are you referring to the residential market? Rates dropped 50 basis points and the 10 yr shot up. I don't see rates dropping, especially if they can't control inflation, which was supposed to be under control, but appears not. And who knows what is in store with the jobs market.

It also depends upon the election and what policies are implemented.

I am hoping prices continue to drop in multifamily, and we see a pick up in activity. Investors thought they could extend their debt, but that doesn't appear to be the case with what has happened to rates.

This cycle would have been a disaster if our banking system was in the same situation as 08. 

Gino

Hey @Shannon Mogilinski - I am actually from Elgin myself (down in Chicago now) so I know that Fox Valley Area pretty well....Geneva is a great area! Love to see MLS deals in that area!

Are you primarily doing flips in the Fox Valley area?

What are the terms that GreenState credit union offers with your holdings?

Last question, you are hiring an architect and submitting plans to the city in a renovation like this correct?

@Princess Subijano-Cannataro

Hi Shannon - thank you for your insight on a successful investment. I live in the western suburbs of Chicago and just beginning my journey on rental properties through the Brrrr approach. I would appreciate it if you could help me set up a team towards investing in rental properties.

I will be self funding my initial investment but will use refinance to fund subsequent investments.

I will appreciate your guidance.

Suhael Ahmed