Cleveland and Chicago - Would love feedback

[Mark Kovacs]

I’m 39 and have about 20k saved excluding my 401k. My salary is over 100k per year. I have a rental in Cleveland, Ohio I started renting 10 years ago when I moved to Chicago. I’ve had the same tenants in the house for 10 years but it only pays the mortgage. That house has approximately 50k in equity. I can sell it pretty cheap using my close friend who is a realtor in the area. I bought my second house in Bolingbrook, IL in 2012 and now has about 100k in equity. I want to move from Chicago area but my wife is committed to staying. 1) How would you approach the house in Ohio that is not cash flowing without scaring away the great tenants? 2) I want to buy more property and build my portfolio so I can eventually leave my salaried position. 3) would you recommend am LLC or wait until my portfolio is sizable? Several considerations: - I am willing to buy in other states (where would you recommend). - My wife is an accountant - I have great access to Chicago, Cleveland, Minneapolis, and Atlanta with free airfare, meals, and lodging. But do not need to be restricted to these areas. Thanks for any and all support in my journey and I am excited to build my portfolio!!

[Ibn Abney]

@Mark Kovacs Does the Cleveland unit cash flow if you raise the rents? If so, I would just give the tenants proper notice and raise the rents. This is a business. If they move, they will have to pay higher/market rents anyway. Or offer to sell them the property.

Going forward, I think there is a lot of opportunity in the city of Chicago. There are a ton of good areas and being local is always a benefit when scaling. 

Lastly. I like the series LLC structure and I would set up sooner than later, but get at least 2-3 rentals first, IMO.

Good Luck!