All Forum Posts by: Vishal Didwania

@Stephen Sokolow are these numbers for SFRs? I assume these are total home sold in last 90 days or are these cash buyers only? Any recommendations for a good local real estate attorney for LLC, etc. ?

Thank you all for the fantastic feedback. I was able to contact someone at Centier Bank and they have a portfolio home loan program for community improvement for investors for up to 4-6 properties under one name with no minimum, 20% down, 30 year amortization, and market interest rate. I think you might be able to do lower down payment but there will be a PMI.

@Marian Smith Point well taken. I agree that appreciation would be nice but i'm not counting on it in my numbers and they're still pretty good without it in terms of cash flow. 

@Steve Rozenberg That's some great advice and you are absolutely right. You gotta own and cannot expect it to be the same as a A or B class neighborhood. Just have to figure out a business model but I think that will be a learning process as things move along unfortunately.

@Lisa Drury @Kevin Hill Welcome to BP Lisa. I'm originally from Bourbonnais as well and have family there still. Know the area but haven't looked a great deal at real estate there. Would love to invest there in the near future. May be we can network. Good luck!

@Joel Florek I didn’t know you could do a secured line of credit through a bank on a cash purchase. That’s great news and really opens things up. Thank you. 

@Jesse Moran I believe a home equity loan or HELOC act as a second mortgage or second lien so if you purchased with all cash then I don't think this is possible.

@Derek Luttrell I am looking to invest in the South Bend area and just spoke to a few lenders on the phone yesterday. I agree with @Andrew Johnson that with a lower loan amount you are running into some limitation with the fees if you are doing a residential loan. I was told by the mortgage banker that there are rules in place where the closing cost fees cannot exceed a certain percentage of the loan amount although I'm note sure if this is true or what is that threshold. For commercial loans at least one bank told me that they don't really have a minimum for investment properties although they do process each on a case by case basis and may not approve it if too low or not worth it (not his words). The ARV is tricky. Speaking with a fellow investor in South Bend who purchased and rehabbed with all cash, he had a tough time getting a decent appraisal and it varied significantly between 2 different appraisers for the same property. That made it really difficult for him to do a cash out refinance.

Hello all, I recently went to South Bend over this past weekend and looked at a handful of SFRs. Some were in better shape than others. I'm looking at a place west of downtown and Marion street between Colfax and Route 20 that was built in 1999 and that is a 3 bed, 1 bath that is selling for $50k and probably will get rent of around $700/mo and currently getting $605/mo. tenant is M2M. It is about 2.5 miles from Notre Dame. Property tax around $600. I think the price is a little high for the location and time it has been on the market. I would appreciate some help from others in terms of if this is a reasonable area to invest, typical rents for this location, and what would be a reasonable purchase price assuming no major rehab ~5k?

Thank you!

@Alex Bok @Dhru Das thanks for the tips guys. This place is at 68th and Langley so pretty far west from Jackson Park. Trulia crime map of the area looks alright. What do you expect rents to be for a 2/1 and 3/1 in this area?

@Federico Gutierrez It's a strange situation. The person selling it is a family acquaintance who connected me with a realtor on the south side of Chicago as I'm new investor and was looking for help. I'm just learning the local market there. The realtor also happens to be the seller agent so I think I first need to find a non-conflicted agent. The numbers I was sent showed a total rent of $2k/mo exactly 1 year ago when both units were rented. I probably need to find another agent first and go look at the property physically. 

@Peter Halliday you're right. surrounding properties of similar size are ranging from $80-220k and of course differing on their interior build. This place has been on/off the market for 1 1/2 years. The numbers look good. Not sure why it has been on market so long.