Best Real Estate option

[Daniel Botvynko]

Hey everyone

I really hope to receive some advice on the current situation.

I am 20 years old I am interested in real estate, in 2022, I was planning a lot of things, however, I have some difficulties starting.

The main problem is the fact that I live in the suburbs of Chicago and the prices for properties around Chicago are extremely high. Also for the past years, I was working for W2 and I can't get a loan. I was looking for different options for buying properties, however, I can't even get a loan for $100k for 1 bedroom apartment with a $20k down payment. And even if I did buy an apartment for a good price, it would take time to sell it for a profit, I would need to wait around 5 months. ( Mortgage broker told me so)

So I was looking around different states and noticed that there are a lot of areas where you can purchase a house for a very cheap price, I am talking about houses that may cost between $10k-$40k. If the house cost so little, I would be able to buy it for cash, fix it, and flip it. However, I know very little about the market in different states and am afraid that I would not be able to make my money back. I am ready to travel to a different state to start my plan of fixing houses for a profit, Illinois is too expensive to start for me now.

I would really appreciate any advice from you if you know any states or locations with the criteria that I am looking for. If I will look for houses by myself, how can I know that I am in the right spot?

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[Benjamin J Paoletti]

Hey Daniel,

I am also in my early twenties and was struggling to find real estate deals for a couple years.

With low inventory and real estate investing become more popular, a majority of the best deals will get picked up in a couple days by an experienced investor or someone who has enough saved up to afford a large down payment or cash offer. We are also not going to win a multiple offer situation.

In my opinion, that leaves us, the beginners, to try and identify properties that have been on the market for awhile (30-90 days) and try to get a good deal.

A good deal could mean $25-$75k under listing price, seller credits at closing for down payment assistance or repairs, and finding a way to update the property to create sweat equity.

Hopefully that was some helpful advice. Message more if you would like to know how I purchased my first property about a week ago in Irving Park.