My Financial State After Moving to my First House Hack

[Darren Bloomfield]

I am looking for some support as I've been feeling a-little antsy lately and some what detached. I've caught a bug... the real estate investing bug that is. I closed on my duplex end of September 2022 with a 3.5% down FHA loan in fast appreciating Logan Sq/ Avondale area. . It took me around a month to rehab and I signed my annual term tenant Nov 2022. The property is two units of 2 bed/ 1 bath's. I am living in the top unit and am renting the other unit for $2,100/ mo. My mortgage (PMI/ taxes/ insurance) is $3,412/mo & a water bill of $218/mo. So essential I am paying $1,530/mo in "rent" to myself. When I move out, I think I'm on track to get at least $1,750/mo (and even more cash flow once I hit 20% and I refinance out of my PMI).

SO WHAT'S THE PROBLEM? 

What do I do next? The obvious answer is to scale. As I said, I've caught the bug. I have time, but now I no longer have liquid capital. I don't have enough "lendable equity" in my property for a HELCO. What do I have? Time, drive, and knowledge. I think one of the most important muscles for a new real estate investor to develop is the ability to ask the right questions. The right questions usual are the ones that you don't have the answer to right away. They are the ones that stir in your brain until you find the answer. 

The main questions that have been on my mind is "where will my next property be?" and "How will I afford it?"

If anyone is looking for an operator to find/ manage a deal, I'm looking for a money partner to team up with in Chicago. I am interesting in a cash flow/ equity split. I have relationships with inspectors/ general contractors/ lawyers/ accountants/ mortgage lenders and most importantly an investor friendly agent! Help me, help you.

[Tom Shallcross]

@Darren Bloomfield - congrats. REI is a get rich slow game, it's great to be hungry and proactive, but you don't need to be reckless. Below are my two cents on your situation:

-If you are truly obsessed with getting the next property but don't have the cash, do the dirty work to find an off-market deal. Whether it's making phone calls, knocking on doors, or committing to a year of direct mail, if you can find an actual genuine deal in one of these Northside markets, you will find someone to partner with you. If you don't have the cash, but truly have the hustle, this is your next logical step 

-Continue to put yourself out there. Let others know you are looking for partners and get involved with the numerous Chicago meet-ups. A partner is not going to magically fall into your lap, you need to take the initiative. Feel free to reach out if you want a list of meet-ups. 

-Hone in on the market. Become an absolute expert on housing and rental pricing in Logan/Avondale. By taking the time to establish this baseline, you will be better suited to find arbitrage in the market that others will miss.