All Forum Posts by: Vish Iyer

@Jay Hinrichs Thanks for the response sir. I am a bit confused here. Are you saying that we cant buy a distressed property, put rehab dollars into it, raise occupancy & rents and get a higher valuation based on new stabilized cash flow? Yes, pulling cash out or choosing not to pull equity out of the property is a personal choice.

The fact remains, the new appraisal will reflect the added value in rents and renovations.  I have plenty of investor friends who do this and so do I, in many mid western markets. I am just talking from personal experience and see no problem with the strategy.

@Account Closed Great question. One of the best ways to have that type of return is to get involved in value add real estate. For example, you could buy large apartment complexes @ 60-70 cents on the dollar and raise rents and in a couple of years do a cashout refinance. At which point you could have a million in equity or cash potentially.

We are doing one now, and here are the numbers for it....

Size: 60 units

Acquisition price: $800,000

Rehab: $700,000

ARV: $2.6 million (After rehab and raising rents)

You are likely to find these type of deals in midwestern markets. You could also go into it with a partner for a larger deal.

@Charlie Gruber You have a couple of options. 

1. To become a member of your local reia group and connect with experienced investors. You can develop your own criteria with your terms. Start with a smaller amount maybe? Maybe gap fund a deal?

2. To hook up with a HML and invest with them or even a crowdfunding platform

Books are a good way to learn and understand the general principles but nothing beats learning from an experienced investor or mastermind group.

regards
Vish

Hi,

I just got a 2 unit + 1 finished basement in westown/noble square area in Chicago under contract. Here are the numbers.....

Unit #: 2 legal units + 1 basement unit which is going to become one more additional legal unit.

Bedroom distribution in the three units are: 4,2 and 2

Price: 400k

Rehab: 60k

ARV: 700k

Exit Strategy: Long term hold

Rental Comps (potential): 6k conservative and 7k or more per month potential if rented out to software professionals per bedroom.

Hey guys,

I m looking for a cash out refinance on  a six unit in chicago which I bought eight months ago. Four of the six units are rented and other two should be rented any day.

Numbers: 

Aquisition price: 138k

Rehab : 45k

ARV: 290-300k

Actual income: $3200.00

Potential Income: $4800.00

Tenants pay all utilities

I would need max ltv. Please only experienced lenders and brokers with relationships will be considered.

The property is in Chatham area between 87th and cottage grove.

@Brad Chatman I suggest you connect with investors who are investing where the cash flow deals are presently in chicago. The REI clubs are a great source. Find investor friendly agents, property managers and wholesalers. Once you talk to 3 or 4 cashflow investors and their price points, you will get an idea.

Taking 3 months just to research might be a good idea, before you spend actual dollars. 

Regards

Vish

@Courtney Downtain Some of the points to consider are... 

- Look to buy value (see if you can get a discount on a turn key deal). There are multiple ways to negotiate that. 

- If you can even get a 10% discount from market value then you get an additional $200.00 positive it might a good deal depending on how long you want to hold it.

- Another way to look at it is, there are some other markets which are offering turnkey rental @ the 1-2% rule with discounts. You might want to consider those.

As a rule $200.00 positive is a bit skinny as just one repair can potentially wipe out cashflow for an entire year or six months.

Regards
Vish

Mark Davis, welcome to BP.  Chicago is an awesome market to invest in. It offers something for investors at every level. Let me know if you need any help in terms of reviewing deals or other referrals.

Hi,

I m looking for a portfolio lender to cash me out on a single family and fourplex both located in the south side of chicago. The ARV for both properties are

Single family home: 140k

Fourplex: 220k (making $3400.00 /month)

I presently have  hard money notes on both. Please contact me only if you have already done these type of deals.

Thanks

Vish

The Maywood property is sold. Thanks for those who contacted me on that.