New Investor from Chicago, IL!

New Member Introductions
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New Investor from Chicago, IL!

Hansel Sjukur
Wheaton, IL · Member since 2018 · 2 posts · 4 votes

Hello all!

Excited to be part of the BiggerPockets community. I'm 24 looking to invest in multi-family units in the Chicagoland area. Currently paying $1000 in the Western Suburbs. Managed to secure a pre-approval that can allow me to purchase up to 350k with 25% down payment. Goal for this first property is to primarily generate cash-flow, and secondarily for its appreciation -- whether forced or by the market. Some thoughts that are still in mind:

  • Should I consider pure investment properties vs trying out house-hacking?
  • What to look out for in determining potential neighborhoods (I am not local to the area and is curious on how "hot" neighborhoods started out and what signs to look out for)
  • How bad can a bad investment be? Especially financially?

My 5-year goal is to generate an equal passive income as my current working income. Open to explore out-of-state investing (learnings so far have been theoretical from David Greene's book) once comfortable enough in the REI scene.

I hope to get more connected to the community and learn from everyone! Cheers!

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Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
8y

@Hansel Sjukur

Welcome to the BP family! Glad you joined the best real estate investing website! Here are some recommendations for you:

Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

Wishing you the best!

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  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    8y

    @Hansel Sjukur

    Welcome to the BP family! Glad you joined the best real estate investing website! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
    Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

    If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box. He or she will be notified of being tagged so that the conversation will continue.

    Wishing you the best!

    2Reply
  • Jill DeWitPro Member
    Investor · Scottsdale AZ · Member since 2015 · 1k+ posts · 423 votes
    8y

    @Hansel Sjukur hello and welcome to BiggerPockets!

    The road map for real estate investing success can be found at Bigger Pockets!

    Connect with experienced investors and get deals done correctly on Bigger Pockets.

    Congratulations, Hansel, you came to the right place. I wish you much success.

    1Reply
  • Alex Fraher
    Real Estate Broker · Chicago, IL · Member since 2016 · 44 posts · 16 votes
    8y

    Welcome Hansel! If you are looking for properties that don't need a lot of work in some of the more desirable areas within Chicago it will be tough to buy a single or multi-family property for $350k. But there are a lot of investor friendly condo units out there and you could find one closer to the $250-$300k range. The more you put down the better the cash flow but I'm a big fan of house hacking and putting as little down as possible. The biggest risks financially would be that you buy into a condo association that issues a special assessment in the future or starts prohibiting rentals. Obviously there's a lot to consider and I'd love to discuss further with you!

    2Reply
  • Jeff Burdick
    Investor · Chicago, IL · Member since 2016 · 515 posts · 247 votes
    8y
    Originally posted by @Hansel Sjukur:

    Hello all!

    Excited to be part of the BiggerPockets community. I'm 24 looking to invest in multi-family units in the Chicagoland area. Currently paying $1000 in the Western Suburbs. Managed to secure a pre-approval that can allow me to purchase up to 350k with 25% down payment. Goal for this first property is to primarily generate cash-flow, and secondarily for its appreciation -- whether forced or by the market. Some thoughts that are still in mind:

    • Should I consider pure investment properties vs trying out house-hacking?
    • What to look out for in determining potential neighborhoods (I am not local to the area and is curious on how "hot" neighborhoods started out and what signs to look out for)
    • How bad can a bad investment be? Especially financially?

    My 5-year goal is to generate an equal passive income as my current working income. Open to explore out-of-state investing (learnings so far have been theoretical from David Greene's book) once comfortable enough in the REI scene.

    I hope to get more connected to the community and learn from everyone! Cheers!

     Welcome Hansel.  I'm a fellow investor in the city of Chicago.  

    Finding a hot neighborhood before it gets hot is more of an art than a science.  Generally, I look at what the previous hot neighborhoods were and try to get a sense for the path of progress.  

    The big advantage of purchasing an owner-occupied property is that the financing is so much better.  Lower down payment, lower interest rate, better terms across the board.  Property taxes are usually much better if you live there, as well.  

    Investing *can* be bad.  There are certainly some real horror stories out there.  Its extremely important to do your due diligence to minimize risk as much as possible.  

    What areas on Chicagoland are you looking?  City or Suburbs?  

    1Reply
  • Hansel Sjukur
    OP
    Wheaton, IL · Member since 2018 · 2 posts · 4 votes
    8y

    @Dmitriy Fomichenko @Jill DeWit Thank you for the warm welcomes, looking forward to learn from everyone here!

    @Alex Fraher Thanks for the insights! Agreed, I have been looking via realtor.com and have noticed exactly your point. I would love to go into details on how to estimate costs of putting work into it (materials, getting to know contractors, etc) to make an informed decision when purchasing a property up front. I have some hesitation with condos due to the HOAs as a recurring cost, but happy to explore all options.

    @Jeff Burdick Hello! Thanks for addressing my concerns! I am looking at areas closer to the city, trying to wrap my head around what could be considered A, B, or C neighborhoods and narrow down from there. I would love to hear more about your experiences investing in the Chicagoland area.

    Thanks All!

    1Reply
  • Jeff Burdick
    Investor · Chicago, IL · Member since 2016 · 515 posts · 247 votes
    8y
    Originally posted by :

    @Jeff Burdick Hello! Thanks for addressing my concerns! I am looking at areas closer to the city, trying to wrap my head around what could be considered A, B, or C neighborhoods and narrow down from there. I would love to hear more about your experiences investing in the Chicagoland area.

    Thanks All!

     Hey Hansel.  I've been studying real estate in many of the different Chicago neighborhoods for years now.  I'd definitely be open to discussing my experiences with you.  

    0Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    8y

    Welcome aboard Hansel!

    Podcast Guest on Show #121
    1Reply
  • Eric Flatt
    Chicago, IL · Member since 2018 · 31 posts · 33 votes
    8y

    Hi Hansel and welcome!

    I'm a new investor myself having closed on my first deal in January and it's a house-hack in Chicago.  I want to encourage you to BE PATIENT DURING YOUR SEARCH.  There really are deals in Chicago.  I spent almost all of 2017 searching for my deal with a real estate agent, nothing fancy.  However, I closed on my duplex for $345k and I'm a half mile from the United Center.  My point is that deals are in Chicago particularly for house hackers, but you must be willing to search and be patient.  My mortgage is $2500, but I have a tenant paying me $2k rent in my other unit.  When I move out and rent out the unit that I'm living in I should cash flow fairly easily. 

    As you can see from this thread there are so many knowledgeable and helpful investors on this site.  I'm a newbie, but it can be done.  Please feel free to reach out if you want to talk as you and I are both newbies (my deal is only 6 months old).  I will be posting my journey with this first deal in subsequent posts on the forum and I hope you find them useful.  I'll go into both technical (e.g. I did some renovations but not a rehab) and soft details (the struggle with fear).  You'll do great!  Just remember, you don't need to knock it out the park with your first deal - you're just trying to get in the game.

    1Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    I would househack a multifamily if it were me
    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    8y
    Originally posted by @Hansel Sjukur:

    Hello all!

    Excited to be part of the BiggerPockets community. I'm 24 looking to invest in multi-family units in the Chicagoland area. Currently paying $1000 in the Western Suburbs. Managed to secure a pre-approval that can allow me to purchase up to 350k with 25% down payment. Goal for this first property is to primarily generate cash-flow, and secondarily for its appreciation -- whether forced or by the market. Some thoughts that are still in mind:

    • Should I consider pure investment properties vs trying out house-hacking?
    • What to look out for in determining potential neighborhoods (I am not local to the area and is curious on how "hot" neighborhoods started out and what signs to look out for)
    • How bad can a bad investment be? Especially financially?

    My 5-year goal is to generate an equal passive income as my current working income. Open to explore out-of-state investing (learnings so far have been theoretical from David Greene's book) once comfortable enough in the REI scene.

    I hope to get more connected to the community and learn from everyone! Cheers!

     Hello and welcome! Best of luck to you!

    1Reply
  • Michael Facchini
    Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
    8y

    Congrats Eric, very exciting stuff!   You're onto great things!  And couldn't agree more...takes patience!  Patience and persistence wins this game!

    0Reply
  • Mindi Rosser
    Rental Property Investor · Oahu, HI · Member since 2018 · 77 posts · 42 votes
    8y

    @Hansel Sjukur If you decide you want to look for properties in NWI (Northwest Indiana), I'm happy to be a sounding board as to good neighborhoods and such. I grew up in the area and think there's a lot of opportunity here, if you know where to look (and which spots to avoid at all costs!) Happy Hunting!

    0Reply
  • Chris Youssi
    Rental Property Investor · Caledonia, IL · Member since 2015 · 289 posts · 213 votes
    8y
    Welcome to the BP Community. I’ve been investing for 30+ years and considered myself somewhat savvy. Quickly found out lots to learn and countless members on here willing to help . Based upon the response to your thread sounds like you have several willing to network and give you a hand up . Great news! Best wishes Chris
    0Reply
  • Jay Elsberry
    Residential Real Estate Broker · Chicago, IL · Member since 2016 · 8 posts · 0 votes
    8y

    Welcome Hansel! I am an investor and broker in the area.  There are not unlimited deals that fit your criteria at $350K, but they are definitely out there if you are patient!  Good luck, and let me know if I can assist you in any way!

    0Reply
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