New Real Estate Investor Starting out in Chicago

[Ryan Schickerling]

Hello everyone, My name is Ryan, born and raised in the western suburbs of chicago and currently living at a 3 bedroom rental property in the city. Over the past few months I have been listening to bigger pockets podcast which has opened my eyes to the fantastic investment opportunities real estate has to offer. In the next few months I will begin my real estate investment journey, and am trying to determine the best strategy for new investors in Chicago. My plan as of right now is to house hack with a multi-family property, and make the initial down payment on the property with an FHA loan. I am questioning if this is the right strategy, or if I should begin my real estate journey with a single family property, given that I have been able to find less expensive property which will allow me to invest more capital in renovations. Neighborhoods I am looking to invest in are Logan square, humboldt park, Ukrainian village, Avondale and Pilsen. I am open to suggestions in other emerging markets in Chicago. I really appreciate any advice, and am very excited to construct a plan of action for buying my first property.

[Jeff Burdick]

Originally posted by @Brie Schmidt:

@Ryan Schickerling - Like others have said, it starts with financing. I would strongly consider the 5% Home Possible loan over the FHA for the first. It is cheaper, has higher loan limits, and can only be used on your first. Then you can do FHA on the second and use two low money down programs.

I agree with this completely. I love the idea of tag-teaming a Home Possible Loan for the first property with an FHA for the 2nd. A great way to quickly build a portfolio with not a lot of cash up front.