All Forum Posts by: Brad Chatman

Hi All,

I'm just getting into the real estate game. Finding SFH is pretty simple; however, I can't find a good resource for multi units (2-4 units). Do any of you have a good resource that you use to find these properties?

Thanks All!

Any idea how long this process typically takes? Days, weeks, months?

Thanks 

HI All,

I'm just starting out with rental properties and I've noticed a lot of properties that have very high property tax in Illinois and as a result the cash on cash return doesn't work out on a lot of these deals.  

It just seems off that these properties are selling for low 100k and the property tax is 5-10k annually.  

Any thoughts on this?

Is there an opportunities on these to get the property reassessed and drop this property tax in order to make the cash flow more appealing? 

Have you come by this and do you typically just filter these properties out right from the start?

Thanks for your help.

@Jeffery Griggs

So on your properties you have your tenants pay for water/sewer/trash/landscaping/snow removal?  Do you find this for all your rentals or just single family homes?

This is very helpful.  Thanks again

Hi All,

I'm working with a house flipper/property manager and considering buying some of his properties.  in his pro forma he shows this property at a 20.87% cash on cash return based on his assumptions; however, when I run mine I'm getting 7.91%.  

We are differing on the utilities, maintenance, capital expenditures, and vacancy rate.  

This is a newly renovated property. 

Can you have a look at both of these worksheets and let me know if you believe any of these assumptions are off from a general rule of thumb point of view.  I just started researching real estate investments about two weeks ago so my numbers could easily be off.  

Any help on this would be appreciated.  

Thx!

Flipper/property manager anlysis

My analysis

@Randy Charboneau thanks for the info.  Do you think any of the neighboring towns next to Grand Rapids will get the benefit of the heavy investment in GR?  Any thoughts on focusing on areas just outside of GR for rentals instead of fighting with the competition directly in GR?  If so, do you have any recommendations?

Thanks

Hi Eric,  Thanks for your thoughts.  

One reason why I considered West Michigan is due to my family being heavily involved in the construction industry.  In Chicago I do not have that connection. 

If i'm heading down the wrong path I'm hoping to correct my direction at the beginning rather than finding out a year or more down the road when I have more skin in the game. 

I am literally on my first week of searching and i'm looking in Chicago with another property manager as well.  

I just wanted to get peoples opinion who have been down the path.  Obviously you are one for investing where you live.  I would prefer that and consider it.  I just saw from a novice analysis that yields were higher in West Michigan.  

Thanks again

Hi Jered,

Thanks for the reply. My top concern is cashflow.  Everything else is a bonus.

Hi All,  I'm looking to build a rental property portfolio and while searching online for a good location to start my search I came by an article (link below) that had a map function that shows Muskegon Michigan with what looks to be some interesting numbers.  I currently live downtown Chicago and I'm originally from the west side of Michigan (near Muskegon) so I thought this location may be a good spot to dig into and get my first rental property. 

Any thoughts on location selection that you would pick if you were starting on your first rental property like I am?  I have plans to use a property manager to help find investment properties and manage the properties (maintenance, rent collection, getting new tenants, etc...).

Any thoughts/opinions/direction would be greatly appreciated.

Thanks,

Brad

http://www.housingwire.com/articles/36651-new-repo...