Making sure I start off right

[Tim Duffey]

Hi guys,

Was looking into getting started in REI in Chicago where I live. I have looked at some properties and ran some numbers in areas such as Logan Square, Bucktown, etc. My initial strategy is to do a multifamily house hack where I live in one unit and rent out the rest for a year, using the FHA loan. Then I would rent out my unit after the year is up and invest in a new property afterwards using the Stack method. Question is for areas such Bucktown, West Ridge, Logan Square, etc, is it ok to have a low CoC return if appreciation is most likely for the property in 10-15 years? Some properties I see almost hit the 1% rule now and maybe after some rehab doing the BRRR method I can increase my rent to increase my cashflow and CoC. Just curious in these areas if it's a good bet to start investing now based on my observations and maybe other observations you know of that I do not know of yet. I appreciate any input on this. TIA.

[Joe Villeneuve]

Would you work full time at a job, barely making ends meet, basing your acceptance of this on your boss giving you a raise 10-15 years down the road?

That's what you're asking your money to do.