All Forum Posts by: Alex L.

Thanks! It’s now actually very tempting to buy a gray stone or brick 2-flat and convert it to a single family. $650K in and add $200K for rehab then sell it at $1.2M. Seems to be a great use of capital for sure.

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@Tom Shallcross

Love your analysis here Tom! Curious about the point on adding legal basement unit… what are some of the requirements and processes that one need to go through? And how much do they cost?

Thanks!

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@Kar Sun

What markets would you recommend? People are still buying here and agents are saying it’s hot in neighborhoods like Logan square. But the numbers puzzle me.

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Seeing wide spread rent reductions while 2-3 units buildings are selling at $600-700k. What’s the catch? 3bed/1bed only going for $1800/month and 2bed/1bed is around $1400/month…

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Thanks Corby! Similar to New York City, it's all about condos here. millennials are flocking into the city and they like to rent!

Originally posted by @Corby Goade:

It sounds like I should be asking YOU for advice! I think you are on the right track- the only caution I might offer is that, at least in my area, condos don't appreciate at the same rate as SFRs and often come with the liability of an HOA. Beyond that, if you are finding great tenants and seeing reasonable cashflow and ROI, I don't think I would change a thing. Congrats!

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Thanks Thomas. What would you do if you were me? How do I achieve 10% return from my existing equity? If I sell all the condos I'll be forced to pay capital gain taxes.

Originally posted by @Thomas S.:

Looks like you are investment goals do not concentrate on cash flow. Understanding the value of cash is a major aspect of investing.

Based on equity having a opportunity value of 10% you are losing out on $7000/month income. Your $2000 positive cash flow is actually negative $5000. You are paying 800K to generate artificial cash flow at a extremely high price.

Investment wise your condos are money pits. If you want to create income your money would do better in a mutual fund.

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Bram, Thanks for your input! nothing is really stopping me from buying more similar condos but the more condos I have the more risk I could run into. All of my current units rent for more than $2500/month(with one close to $4000/month). With a total monthly gross rent of $1,2000(only CF $2000/month), you can see my risk is already high.

I'm looking to either hedge my risk or a way out to increase my monthly CF in a significant way.

Originally posted by @Bram Spiero:

Looks like you're enjoying what you paid for, meaning that A class properties are often so hands off to hold.

With the same money you could hold 10 nice, B class single family homes, spinning off 200-300 CF each. Your risk would be spread out more but you'd be making only a little more and have more work to do.

What's stopping you from continuing to buy up more condos until you have enough to live off?

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Hi everyone, I'm looking for some advice/ideas on I should do next. Here is where I'm now.

-Started flipping condos since 2012 and have done 12 deals so far.I exclusively buy condos around city downtown and the average acquisition price is about $300K with a net profit of $50K after the resale

-Started to hold some units since last year and so far I have 4 condos with a combined cashflow of $2000 a month(all of them are in fast growing prime downtown neighborhoods with a combined market value of $1.8 million, my combined equity is about $800K and total mortgage is about $1million. Because the units are all located in prime locations, I get great tenants with minimum need for maintenance/repair)

My desire is to grow both equity and cashflow quickly so we can 'set for life'!

Ideas? please chime in...

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All Forum Posts by: Alex L.

Alex L. has started 5 posts and replied 19 times.

Post: Chicago logan square rental market

Post: Chicago logan square rental market

Post: Chicago logan square rental market

Post: Chicago logan square rental market

Post: Chicago logan square rental market

Post: What's next? Looking for advice/ideas!

Post: What's next? Looking for advice/ideas!

Post: What's next? Looking for advice/ideas!

Post: What's next? Looking for advice/ideas!