All Forum Posts by: Adrien C.

@Jeff Burdick you should probably look at stats before you comment on appreciation in NW Indiana. Areas like Hammond have seen 50% appreciation or more over the past 3-4 years. Houses there went from $75K to 125K. Other cities in the higher price points also appreciated but at lower rates. I think the region averages 8-10% appreciation each of the last 3 years. But it's not like a Chicago condo you buy for $350K on a deal and a few years later it's worth $550K and then corona hits and it's back to $350K. 

@Artem Shum It's hard to compare the two areas. There are financial considerations. Indiana has lower taxes, lower entry costs, and is landlord friendly. But it's boring. If you're looking for nightlife and good bars and restaurants, Chicago wins there. 

If appreciation is your only consideration, you missed that train as we are close to the top if not already there. 

NW Indiana is night and day different from Chicago and cook county. I can evict (in non covid times) by the end of the month they miss. From the missed payment to getting them out is usually 6 weeks or less if you notice correctly. And the judges are pretty straight forward - "Did you pay your rent? No, ok, adios." They don't care what their excuse is. Taxes are also much lower. The downside is we don't have the potential appreciation upswings like parts of Chicago do- but at the same time, we wont drop as much either. We're pretty boring here. 

Cash buyers are still buying. Wholesaling was already extremely compatible prior to covid. It’s very difficult to get any appointments and many don’t want to try to sell over the phone. I’m down from 13-15 appointments a week to 2-3. 

Mike Kvachkoff in CP and Jonathan Petersen in Munster are 2 good options. 

It’s not a deal. Taxes are $2100. So that eats up whatever CF you thought you had.  House has been on the market for 6 months. Keep in mind resale value when you’re done with it. It’s an old 2 bedroom with no basement and a functionally obsolete garage. Be patient and you’ll find something better. When the stay at home crap is over, all the people holding out on listings are going to flood the market. Stuff will sit and sellers will negotiate. There’s a deal for you but this one isn’t it. 

Great question- i'm getting bombarded on Facebook with ads and in my email for those same leads. I'm just thinking- can someone produce better leads than the $$$ I'm spending locally on DMM and PPC and in-house call answering. Doubtful. 

1- rental market is HOT in NW Indiana. But it's hard to elaborate beyond that because we have so many difference areas- ghetto Gary all the way up to A- communities. Each have different pros/cons and depend on what your goals are. 

2- The MLS has decent deals for rentals still in some markets. Hard to find something to flip off the MLS though. I'd encourage you to put together a team out here (contractor, agent, wholesaler, property manager, etc) so when you see something, you can act fairly fast.

3- depends on what your partner wants. Thousands of ways to put together a JV.

You are paying market value for the property (assuming it has a garage). I would expect AC and appliances if I'm paying market value. It's more of a low B area and appliances are expected by tenants. Rent is as I would expect. Hammond in general has experienced a ton of appreciation over the past 3 years- on par with the rest of the county. Back in 2016, that property is maybe worth $70K renovated. 

As far as your numbers, I think if the property was renovated and has new roofs and other big ticket items, your CapEx and maintenance numbers are a little high. I'd hire an independent inspector to look over the property if you haven't already.

Regarding your CoC and returns, that's personal preference. It seems low but you're also buying turnkey and didn't have to do anything. I personally wouldn't leverage a property to make $130 a month. Not worth the risk. I'd like to see that nearly doubled in my opinion. There's easier ways to make $250 a month then real estate.

@Isaac Harjono you get those from Elliot? Try Vilgar Property Management out of Munster. 

What county?