All Forum Posts by: Carlos A.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

We built this 6-unit apartment building from the ground up. We bought the lot, had an architect design the building and contracted for the construction.

What made you interested in investing in this type of deal?

We like to invest for both cash-flow and appreciation.

How did you find this deal and how did you negotiate it?

We looked for a value lot with enough square feet to build a multifamily in our desired neighborhood.

How did you finance this deal?

Commercial Loan

How did you add value to the deal?

We optimized the design for cash-flow and what we necessary in the particular neighborhood

What was the outcome?

We have close to 100% occupancy every year. Property has appreciated over $250K in 3yrs. Consistently cash-flows about $2000 per month.

Lessons learned? Challenges?

Our only challenge right now is maintaining cash-flow while managing increases in:
- Interest rates
- Property taxes
- Insurance rates

Hello! I bought a house in Tinley Park in 2021. Current mortgage is 1748. Interest rate is 3%. I have renovated most of it  (new hardwood floors, removed walls, paint, new banisters, furnace, roof, HVAC, cabinets, appliances) with some minor things to still do. I’ve lived in the last year and now I’m ready to live elsewhere. 

My goal has always been to reduce my living expenses. Not to get rich or replace my income with real estate. Literally cutting my living expenses to near 0 if the goal. I currently live with my brother and he pays rent (725). Now I’m at the stage where I’d like to:

A) Rent it out. Mortgage is 1,748. Based on the numbers I could probably rent for 2450. Based on my research, I know to add on capex, vacancy, etc. I don’t anticipate any major repairs in the near future as the big stuff is new with warranties.

B) Airbnb. This was my original plan. I’ve been looking at the airdna data to pinpoint how much I could rent per night. It’s giving about 190 per night. I have a commercial cleaning business, so I can easily assign a cleaner so not worried about clean between visits. I dont expect this to be passive, I’m fine with being involved as I really like hospitality and providing great experiences. 

C) Sell. It just crossed my mind the other day this is an option. I’d just move back to the city. I miss living by the lake. 

I thought about getting a multi family, but the cash reserves required are somewhat limiting. I also thought about buying a small condo (under 125k) to live in while renting. I haven’t thought much how using a heloc in any capacity as I’m thinking the value has increased with the upgrades.

Really looking for some advice on what might make the most sense given my goals (reducing living expenses to 0 + paying down debt this year and next).

Thanks!

 Thanks Carlos! My grandmother actually passed in 2009. Thats how long this property has had issues. We forced the city to do the demo and yard cleaning because we could not come together to get things done. I'll definitely talk to my siblings because I would not want to harm them in any way or hurt our relationship. I was thinking of having the home put into a trust with our names on it. However, I would want a higher percentage ownership for paying off the lies and covering the costs to get the property up to par to go to the bank. What are your thoughts?

My father was quit deeded my grandmother's property after her death by my aunt when the property was thought to be on the way to be taken by the bank for outstanding loans. Long story short, the bank wrote off the loan. My dad has this property but it is in disarray. It has liens for the city demo of the house and cleaning of the yard. It would take $25k in total to clear the liens. The land is zoned for 4 lots. 

I would really like to make this my first investment in real estate as I see it as the most low-cost and less risky opportunity to get in. However, I'm unsure of how to move forward considering that I have 3 other siblings that would be tied to this property if anything happens to my father. I'm the only one in my family that is financially capable of doing the things needed to get the property right. I'm lost on where to start with this and really need help identifying the best possible way forward. Thanks in advance!