Newbie from Libertyville, IL & Worcester, MA

[Jennifer Bayon]

Hi – I’ve been a wannabe for years, obsessively looking at listings, and joined to overcome my analysis paralysis. I recently lost my job due to Covid and now have the time and energy to educate myself on the process and most importantly, the numbers to make a new deal.

I discovered Bigger Pockets via the podcasts, and hooked ever since. I took on the Pro membership and have committed myself to this path. My RE experience to date (other than buying my own home) has been fixing up and renting out my partner's home when we consolidated households earlier this year. Moving forward, I'm focusing my searches in 2 markets (Lake County, IL and Worcester, MA). For Lake County, IL - looking to "Buy and Hold" single family homes and/or townhomes to start. I've been schooling myself on the BRRRR method, though cautious that it may be "too good to be true." (I expect to get some heat for that comment!) For Worcester, MA - I'm interested in "buy and hold" for single or small multifamily. Worcester is on my radar as it's where I'm from and I have local support.

As I embark on this chapter, I’m eager to connect with other more advanced “newbies” on how they got started, especially those that don’t currently have W-2 income.

Thank you!

Jennifer

[Doug Anderson]

Hey Jennifer, I grew up and still currently live in Libertyville, IL. My suggestion is to start with something small. My first property was a $155k house up in Kenosha WI and then my second was in Waukegan. 10 years ago I picked up a small 2 bed, 1 bath house in Waukegan for $56,000 and rented it for $900. The current rent is around $1100 but the same tenant has been in the house and always paid on time so I have only raised his rent up to $950. As you purchase more properties you get more confidence. The biggest issue I have is finding "good" contractors to do work. This year alone I have gone thru 8 of them. Another suggestion is stick with your criteria and wait for a property to come on the market that fits your criteria (1% rule, certain cash on cash return, etc). Over the years I have stuck with my criteria and now up to 43 doors. If you don't have w-2 income, you might want to reach out to local banks and credit unions that do portfolio real estate loans. They have different standards then if you go thur a traditional lender for a 25% fannie/freddie loan. Feel free to reach out if you have any other questions.