Researching opportunities in Oregon and Illinois

[Charles Jones]

Hello to all, I am relatively new to B.P., but have long had an interest in real estate investing. My only experiences have been through buying and selling my own personal residences (3 purchases, 2 sales). At present, I live in Corvallis, Oregon, but I am originally from (and have family living in) rural northern Illinois. 

In the last few months, I have read ~10 real estate books. I have started attending a local REIA monthly meeting (I've attended twice) and I've been listening to the BP podcasts (sequentially starting at #1). I've also identified two co-workers as potential partners (we are exploring the idea together, sharing research resources, sharing our R.E. analyses, trying to identify potential deals, and getting a better understanding of creative financing options. All 3 of us are relatively new to the game, but we all have great skills and between us we have enough capital to get started with an acceptable amount of risk (in case of total failure). We also all have good jobs and great credit scores. I am mostly interested in multi-family units. The other guys are more open to SFRs and condos, both of which I am leaning away from.

I am finding that properties in or near my home town in Illinois are much more affordable and according to my analyses can provide cash flow at or above the 2% of purchase price. I could even move forward without partners, if preferable, and any trips home would be potential tax write-offs. In Corvallis and surrounding areas, it is necessary to invest a bit more capital for smaller ROI's.

Anyhow, my potential partners and I have been discussing the idea of acquiring an FHA loan for a local multifamily (one of us living in one unit), but are unsure how we would handle the loan in regards to a potential partnership. Would it be in all 3 of our names? Would we later transfer the deed to our LLC? We're not sure of how to tackle those issues at this time.

Well, I just wanted to introduce myself (as well as mention to @Joshua Dorkin that I share his enthusiasm for Star Trek... TNG was great, but 7of9 may have converted me.)

Cheers.