All Forum Posts by: Crystal Smith

In the current market we are in (inflation, rates, housing market uncertainty, etc.) what are your thoughts on buying vs renting your primary residence?  

I own a small portfolio of SFH and a couple of duplexes and we have been renting our residence for the past year. Our lease is coming up in a month or so and while we do plan to stay for another year because of our kids I have started to think more about buying. If I buy another house we would have to downsize but our monthly mortgage would still be higher than what I am paying for rent. I know that depending on who you talk to, your primary is not an asset because it does cost you money each month but I still struggle with paying rent and not building any equity.

What are your thoughts either way?

I signed up Propstream and started texting offers, and I got my first lead. The seller is going to call me, and I don't know how to close. I need help! Should I contact "constant close" that I have seen on youtube? It is the best not seller know this is completely new to me, isn't it?

This seller's info: pre-foreclosure on 2/23/22. Equity 35%

I started texting pre-foreclosre houses.

Hi all, I'm looking to get into my first investment property and have ran the numbers on what I think is a great opportunity. I have 2 questions, see the details on the deal below:

1. Does my math check out? Am I missing anything (besides the fact that all numbers are estimates and there is always risk involved)?

2. What is the best way to get the property under contract? Do I reach out to the seller first or do I find an investor friendly agent that can represent me as the buyer first?

The Deal:

610 sq ft. 2BR, 2BA unit in Illinois with an unfinished basement that I will convert into a 3rd bedroom and add ~30% more livable sq. ft. to the house (610 sq. ft. to ~800 sq. ft.) and one of the bathrooms is already in the basement with necessary plumbing but needs serious cosmetic work. I am aware of typical code requirements such as an egress window and minimum room size, but if there is anything else I should look out for in the new room let me know. 
The whole house is functional, but outdated. The renovation will cover the following:
Kitchen - new floor, cabinets, appliances, paint, and remove a non-load bearing wall to open up the kitchen and living room.
Living room - new floor and paint
2 main bedrooms - new floor and paint
Main bathroom - gut renovation, new floors, vanity, sink, shower
Basement - convert portion of the basement into a 3rd bedroom with new sheetrock, paint, and flooring for finished part of basement and staircase, - wall off 2nd bathroom and gut renovate

Purchase Price: $60,000
Repair Cost: $30,000 (my own initial estimate came in around $25-30k so I am using 30k to be safer)
ARV: $130,000

Down Payment: $13,500 (15%)
Hard Money Loan: $76,500 (85%)

Monthly Expenses (6 Month, Interest Only Term):
Interest: $825 (11%)
Taxes: $220
Insurance: $40
Total Monthly Expenses: $1,085
Total Expenses Over 6 Month Loan Term: $6,510

Cash in the deal by the time of ReFi:
Down Payment: $13,500
Monthly Expenses for 6 Months: $6,510
Purchase closing costs: $2,500
Total Cash in Deal: $22,510

Refinance:
ReFi Loan: $97,500 (75% LTV)
HML Payback: $76,500
Closing Costs: $3,000
"Profit" after ReFi: $18,000
Equity after ReFi: $32,500


Rental Income:
Gross Income: $1,300/month
ReFi Mortage Payment: $642/month
Fixed Costs: $260/month
Variable Costs: $299/month (23%)
Cashflow: $99/month

My 2 exit strategies would be to simply flip the house, or, if the valuation comes in slightly lower than expected, I am confident I can still rent it at this price because it is a very rent heavy area compared to owning and continue with the BRRRR method with slightly better cashflow because of a slightly smaller ReFi loan amount.

I would love any thoughts, feedback, concerns, etc. about this deal. Thank you in advance!

Hey guys!

I was just wondering if anyone had any tools or apps they used when they determine a multifamily property to purchase? I know about rentometer, but I don't want to pay for a subscription really when I know i'm not going to be using it often. I occasionally come across multifamily deals where I work, so I want to check average rent prices in the area to see if its a good enough deal for me to snag myself, but it isn't a constant occurrence where it justifies me paying a subscription you know? I've been using Zillow, but i'm not quite sure if its really that accurate, so I wanted to see if any of you guys had any suggestions, or do you primarily stick with rentometer to determining average rents?

Also, any other useful apps or websites you use to help you in your rental property purchase? I'd love to hear any recommendations, thanks!

I made a post over in the Starting Out section but it didn't get much traction. Really looking for feedback so I'm giving it another shot in the general forum.

Colorado Springs Metro vs Nearby 'Rural" was the Title. Trying to just get straight to the point this time. 

The response I got was to never invest in anything rural.. but then i felt like maybe my definition was incorrect. just to clarify I would have never considered this place Rural in the literal terms. I only referred to it as that because when I ran the neighborhood scout report it came back saying density was "rural" level.

(Link to old thread .. no need to click just linking it --> https://www.biggerpockets.com/forums/12/topics/1166206-seeki...)

Ill try to attach the report here to this thread not sure if i can do that .

below ill also give some general stats so you have a better idea of the "Rural" I'm talking about. I'm looking to purchase a new build in this zip code. maybe ill be getting in before major expansion? maybe its at its peak now ? etc etc

Population of Zip code : 34.3K as of 2022 Dec +4% from Prior year +11% from 2017
Population of County : 169k as of 2022 Dec (Comparison to the Colorado springs El Paso county population of 740k)

Because this will be my first Multifamily as well as my first time being a landlord (Just not my first time purchasing a house. currently about to leave my previous house hack into this duplex) , I'm very much in love with the idea of very low CAP Ex Repairs needed in the first 5 years, the tenant quality applying to a new build unit in a new community, Just a much nicer and newer product for the money . I'm 30 years it would be nice to have a property that rents like a 1995 house does today and not a 50-70 year old property like a 1970 would be at year 30. Location of the unit is right up against that Lake Pueblo State park too. I actually frequently go there with the family in the summer.

I would greatly appreciate any experiences, advice, or considerations that could help me weigh these options more effectively. Have you invested in either a Local Metro or a Nearby Rural area? What factors did you find most crucial in making your decision? Any lessons learned or pitfalls to avoid?

Thank you in advance for your input. I'm looking forward to a discussion that will hopefully guide me toward making a well-informed choice.

- Robert-Lee

Hi, I’m new to wholesaling and I have questions as how to acquire a purchase agreement or a sellers agreement. 

Good morning, I am a new member here.

I am just starting out my Real Estate Investment journey.

My first experience in Real Estate was purchasing my Single Family home in 2021, when we decided to escape the City and move to the suburbs of Chicago post Covid. The real estate market was on fire, here, houses were selling the same day they posted, everyone wanted more space, and to get out of the city.

I was lucky, and I found a great realtor, and he had a great team, and lenders he worked with. The transaction was very smooth, and a good first experience, especially since it was my first time navigating the process of purchasing a home. I also got a great interest rate with a traditional loan before the rates went up.

I have always wanted to invest in real estate, knowing that it is a proven way to achieve financial freedom.

I have now made up my mind, that now is the time, and I am going to do it.

I am open to opportunities anywhere that makes sense.

I am currently looking at Multi family buildings locally, but I am also looking at deals out of state as well.

I recently watched a youtube video, that got me thinking, I have been focusing on 2 unit and 3 Unit buildings that are in my price range.

But the young guys in the video were doing deals on large unit apartment buildings, 20 plus units with the help of investors,

I am interested in learning how to put together deals on big apartment buildings.

I just started looking around the forums this weekend, and there is a lot of information, and it looks like a lot of experienced and knowledgable people here.

I look forward to meeting and learning from you.

Thanks in Advance,

David

hi everyone i hope everyone is doing ok. im a out of state investor and looking to buy a triples or fourplex in subur of chicago, my question here is : are there specific suburbs  where i can find those type of properties. 

anybody here investing in chicago suburb, which suburbs of chicago is a good place to invest . thanks for your response