All Forum Posts by: Shea Murray

Hey @Keegan Mraz - As many have mentioned - it's a complicated question with a lot of 'it depends' caveats. 

This would be my general advice; If it's your first time, buy a 3 bed, 1-2 bath single family home in the Chicago suburbs. The house shouldn't be a brand new renovation, but it also should not require a significant rehab. Looking for something that might need kitchen cabinets, a few bathroom vanities, maybe paint, maybe floors (something like this). 

Put a small amount of money down and live in the place while you work on the minor upgrade work. Once you're done with the work - move out and rent it and then do it again. 

**This advice isn't right for everyone, but it's a good way to lightly get in the door without a ton of money out of pocket. It also allows you to get a baseline understanding of lower level maintenance work** 

Hey @Andrew Sangar! I don't mind the IDEA of the arbitrage model - but one of the primary ways people make outsized returns in RE is from the equity build, specifically leveraged appreciation. I like your house hack plan better than trying to arbitrage a ton of units, especially as a 23 year old. The power of being young in the RE game means you have a ton of time to let the money compound and weather the ups and downs of the market. These are where you find the stories of the people who bought a 4 unit building for $20k in 1970 and the building is now worth a million. 

 If you go the arbitrage route, you aren't in control of your own destiny, you are governed by the lease which can change at the owner's discretion. 

Hope this helps! Feel free to connect and DM me if you want to chat! 

Hey @Renee Krystek I don't disagree that the city of Chicago can be tough with short term, but I've heard some excellent success stories about short term rental in the Chicago suburbs. 

Also, if you go the single family STR route, you can always pivot down into long term rental if it's not going the way you'd hoped!

I know a couple that owns, operates, and manages a bunch of STRs - here's a youtube video of them: 

 - I'd be happy to connect you with them! I'll send you a connection request now! 

@Nicholas Sanchez I mostly agree with @Jonathan Klemm here. Though if you ask AI in this situation it will almost certainly come at it from a CYA perspective. 

I think if the plan is to expand, learning the process of getting the properties into an LLC could be valuable now.

Like others have said - just use an attorney and a CPA. I'm happy to give you referrals if you want to send me a PM. You could probably figure it out yourself - however, the purpose of the LLC is to give you additional protection and if they are not set up correctly they are easy to pierce if you run into a legal situation - at which point you've defeated the entire purpose of the LLC in the first place. TLDR - if it's not set up right it's basically useless

My understanding of the tax side is that the LLC doesn't really provide any sort of tax benefit - regardless of that, as you grow your portfolio you'll want to have an RE focused tax guy in your corner. The return on the money spent for a good tax guy (especially as you grow your portfolio) is very very high.

@Justin McCarthy if the tenant has renter's insurance a pro tip here is that the renters insurance will cover spoiled food from a bad fridge/freezer. 

If they do not have renter's insurance this is a good reminder to ensure your tenant's always have it! 

In terms of the fridge itself -- I'm not sure what the age of the fridge is but by the time you combine the variety of handyman trips, the tenants annoyance/headspace, and your headspace and time - buying a new fridge would probably be an easier remedy here. 

@Connor Gentry What's up Connor! Love the ambition and the understanding that it starts with building the network. 

I do think there is a lot of opportunity in the suburbs - but there are a lot of suburbs! Curious which ones you're considering / looking at? 

@Katrina Conley Welcome Katrina! If you're considering investing in the western suburbs let me know and I'd be happy to connect you with people who can help! Good luck! 

@Scott Mac Awesome video. You can pick up a few of the street signs towards the beginning I think I saw one that said 38th and then another that said 29th as they were driving north. Guessing Bronzeville based on that! However, like @Jonathan Klemm mentioned, there are 100 year old 2-4 unit flats all over the city! 

@Fernando Villasol Hey Fernando - this is something we have dealt with a few times before. Happy to talk it through, but I agree that if you continue to grow your portfolio issues like this will come up more and more. 

I will shoot you a DM, happy to discuss! 

@Evan Webster Hey Evan, I do think there are some opportunities, specifically in the suburbs. I know a few wholesalers in the suburbs that I'd connect you with, but I would want to understand more clearly what your plans are! I'll send you a connection request / dm now!