All Forum Posts by: Zulf H.

Hi BP members. I have a few questions , appreciate any advice I can get. 1) can you please give me a referral for property insurance agent ( my portfolio includes multi unit bldg, condos , and SFH) . I had an agent that I used for the past 4 years but think I can get better rates. 2) can anyone recommend a good tax person that handles property taxes under a business and personal as well. My properties Are based in Chicago but the tax consultant can be from anywhere. Obviously looking for someone that charges reasonable and is knowledgable . Thanks Zulf

@Radhika M. 

Thanks for your input. I am also leaning towards the 6 unit, even though its quite expensive I think it would be less headache. My goal is to get a certain monthly income from all my properties, however I could focus on the A/B neighborhoods as these will be less headache and the rent will be higher. I think in long run this will be better. Thanks.

Dear BP Members,

I am looking at adding a new  new multi unit property in 2015 to my portfolio, however I am confused and looking for some advice from members who own multi unit buildings and large buildings with more than 30 units.

Here is the current situation with my new purchase

Option 1 – Buy a 6 unit building in a great area with high rentals.

Option 2 – Get a 32 unit building in a not so good area (Low rental  about $700 but 90% occupied – I think majority is section 8) –

I own few other multi-unit buildings (3 units) , apartments and a SFH and they are all in very good area. I don't have a property manager on these as I manage these myself in my spare time, however I do have a good handy man and a good real-estate agent.

The price of the 6 unit is close to the price of the 32 unit building ( price is because of the neighborhood), however the 32 unit building is giving about 15% return versus 8% return on the 6 unit building.

Should I persue the  6 unit building in the good neighborhood and settle for the less profit which will also come with less headache. I have never owned a 32 unit building and don’t know everything that’s involved. I also have  a  job and travel extensively so I would need to get a property management company to handle the 32 units. I don’t have experience and am confused, at one hand I would like to make the additional profit of 15% but I don’t know if the headache is worth it.

Your input/advice is greatly appreciated.

Thanks,

ZH. 

Hello BP members. Hope all of you are doing well. This post is probably more geared towards Chicago area investors.

I am looking to purchase a multi-unit building ( 3-6 units) in the Chicago area. I would like to get some ideas on what are the good areas to invest. I already own a few properties in Chicago  but want to to be sure that I am looking at the best location for my new investment. I am a buy and hold investor, so this property should retain or gain value in the long run. My criteria is

1)Good School district, high house hold incomes

2) Low crime and close to public transportation

3) Rental amount should be atleast over $1100(2br-2bath unit), Taxes should be reasonable, not like Skokir or park ridge 12K+

The areas or zipcodes would help.

Thanks,

Zulf.

@  Bram Spiero

Thanks for your input. I personally feel that if I get loan on all these properties, I will never really own them till they are all paid ( Which might take 15 -30 years). The income will always fluctuate depending on bills. However this is just my personal opinion.

I  do understand that  i will never be able to grow big till I leverage.  Thanks again for the criteria tip, this will be very helpful.

@ Joe Villeneuve

Thanks Joe for the elaborate breakdown. I never really looked at it that way. I am seriously considering the loan option. Thanks!

@ Kyle H.

Thannks for the input, seems like a good idea. I will look into this possibility.

@ Brandon Sturgill  and  @Frankie Woods

You are right, its always good to hear the feedback from someone else. I feel like I have slowed down, but I can manage and make these properties more profitable. I usually tend to outsource eerything.

The properties i own are downtown condo's, couple multi unit bldgs and few apartments.

Hi BP member. Hope you all are doing great. I am a bit confused about my future realestate strategy and could get other prespectives ...

Current scenario – Own 10 properties . Goal is to reach a certain amount ($XX) of monthly income after all bills are paid. I do have a job and am investing in properties in my spare time. I don’t get involved in the maintenance aspect, its contracted out to General Contractors

I prefer to not take loans or mortgages on properties but this will also take me that much longer to get to the desired income I am looking to get from rentals.

• 1.What is the best approach for me, should I focus on Condos, multi-unit bldgs or single family homes? I did consider a building with 8+ units, but I think there will be too much headache.

• 2.I have also noticed that in some areas the property value gain in apartment units is lot less than apartment units in downtown areas, however the rental return is same. The properties are atleast 30% cheaper. These apartments units are located in suburbs where there are mainly single family home, should I buy more of these properties or just stick with apartments that are located in the city and downtown area ( Busy areas).

Thanks for your inout

Z

@ Sibbir Noman

Hi Sibbir. The properties are located in down town, Skokie and Chicago