All Forum Posts by: Chris Winslow

Wow that seems super low for a purchase price! Where do you find your deals?

Hi @Lee Stephens, Congratulations on getting the first deal under contract, that’s awesome! From the looks of the pictures and price to rent ratio, it sounds like a great deal for the area. That should very conservatively exceed the 1% rule, which can be difficult to even meet in the Chicago suburbs.

No deal is 100% perfect, and everything sounds scary on the first one. I just completed my first purchase about 6 months ago in Berwyn. I ended up purchasing ‘as is’ so as you can imagine I was pretty nervous getting into closing and I had not really done a lot of work on houses before I moved in. You’ll find a lot of things are surprisingly easy with youtube, helpful folks at the hardware store, and BP.

• 1- For seepage- leaks are not uncommon but I would rely on those more experienced around you, especially if you went to see the property with someone else, get their perspective if you are unsure
• 2- Drafty windows are not uncommon in the area either, especially with older houses. Replacing that many windows can add up but from the pictures they look to be in pretty good condition so I think you would be able to leave them alone. Other options may be to restore/refinish the windows which I have a friend doing now and it works surprisingly well for old windows or there are also simple draft stoppers and shrink film that can be purchased relatively cheap from your local hardware store.
• 3- Boiler is a bit old but if it functions properly you may have a few more years left in it. Knowing the age of the boiler means you can budget for it going in and it won’t really be a surprise later.
• 4- Really interesting that it would have been unzoned…You could either calculate the heating into your numbers initially as one of the costs you pay as a landlord or you may be able to divide costs evenly over the tenants as long as you are clear with them that this is the case. I am not sure what the costs would be to separate everything back out but as you get into the house you could get a few estimates on what that would cost, and you may find that there is a good potential ROI there.

I looked at a lot of deals before I bought and I can say overall it looks great for the area. The first deal is mainly about learning, I can tell you that I have learned so much over the last few months and guarantee you will too. Super lucky that you found a 4-flat that beats the 1% rule in that area!

Hi Luke, I think it sounds like an awesome idea! Definitely keep doing what you are doing in learning as much as you can, that is the best place to start. All of the BP books that I have read so far have been awesome along with their podcast- so much value from this site. I would recommend to:

- Make connections- investors, lenders, realtors, contractors, wholesalers, etc. in your area.

- Narrow down your focus on where you want to start and what you want to learn, probably best to pick one thing at a time to really dive into and get good at versus trying to learn every strategy in-depth at the same time. Really focus on learning everything you can about that one thing.

- Analyze deals so you know how to actually spot a good deal when you see one

- Also highly recommend that you read “Set for Life” by @Scott Trench

Looks like an awesome session! Looking forward to hearing about the best deal terms in commercial real estate!

BP is an awesome source of info, glad you found it! I am in the Chicago area and happy to connect. Also highly highly recommend connecting with @John Warren

Rich Dad Poor Dad is an awesome start! The next ones I would read next are:

• The Book on Rental Property Investing- Brandon Turner
• The 4-Hour Workweek- Tim Ferriss
• Set for Life- Scott Trench
• Never Split the Difference- Chris Voss

Also any books that are specific to the strategies that you want to use and the BP Podcast is great for learning!

Hi @Josh Smith, welcome to BP! Very cool that you are excited about REI. Lots of awesome info on BP and in addition to that you can meet some great investors, real estate agents, lenders, etc. I think the most helpful thing when starting out is networking with some of these people that you find and starting to build out your team and then also analyzing deals so you know what a deal looks like one when you see one. Cheers!

I would recommend getting a great real estate who knows the area well and is also an investor. This will help you find the best areas to house hack around Chicago. They will be able to tell you the areas where people have been investing and what kind of numbers you can expect in those areas.

If you are okay being a bit outside of downtown, there are a few good areas. From what I have seen, people have been looking a lot in Berwyn and surrounding areas such as Forest Park, Brookfield, La Grange, and parts of Cicero.

If you do not have an agent already, I would recommend connecting with @John Warren. He’s very knowledgeable about the area and has been incredibly helpful for me. I am under contract on my first deal in Berwyn now.

House hacking will be just as relevant post-covid. Finding a place where you can live that allows you to both save money and invest in a cash-flowing asset at the same time will always be a good idea. It lets you gain experience as a landlord and try out investing in real estate without as much risk to capital as other methods of investing. 

"Higher risk"- maybe but it depends on what that means to you and it is difficult to say what will happen in the market (as it always is- nobody can predict it with certainty). At the end of the day, if the numbers are good, then definitely go for it! 

By FAR the best way will be through networking in your area and talking to other investors. Real estate agents who are also investors have been huge for me with determining potential rents. Since you will want connections with other investors anyway this is a good place to get started. That being said, there are a few places you can look just to start getting a general idea. Pretty much just search as if you were looking for a place to live on these sites (I'm sure there are many more that people use as well):

• Zillow
• Apartments.com
• Craigslist
• Hot pads
• Trulia
• Rentometer (limited uses without paying but nice quick comparison in the immediate area)