All Forum Posts by: Daniel Guerra

@Mindy Kristensen Welcome Mindy!  I'm also looking for a multi family home in NW Indiana (Highland Park, Dyer, Munster, St. John, Schererville).  

Goodluck!  There's so much competition and so little inventory.

@Nathaniel M Cooper You'll want to obtain a contract from an attorney.  You'll need advise and counsel from offer to closing.

You'll definitely want to figure out the price of the condo from other similar condos (comparables). You should be able to ask the owner about the extra costs (utilities, HOAs, insurance, etc.). You can attempt to verify all of this by contacting the providers (water/gas/electric, insurance company, HOA representatives, etc.).

Also, make sure you have a couple of potential buyers lined up.  You don't want lose your earnest money if you don't have a buyer after signing the contract.

@Jeremy Clarke Congratulations!  Sounds like an amazing deal.  Wish you provided the address and a snapshot of the buy and hold numbers.  I like to compare the numbers to the numbers I'm seeing in Illinois.

Let us know how things go, good or bad.

I thought about doing out of state investing but doing it as my first investment is intimidating.  I hope you have trustworthy people working for you on the ground at Kansas.  The only person that will truly care about the property will be you unless you partnered up with someone with equal equity.  Other people will most likely just see it as a job and can do alot of things behind your back when your not present.

Honestly, best of luck, I hope it works out.

@Kirti Patel Your courage is amazing for sharing this story.  I will pray for your mental health.  I am sorry this has happened to you and wish you the best of luck.  Please remember there are more important things in life than money.  You have become a much stronger person.

@Ben Leybovich

Congratulations!  Arizona is an awesome place to have an investment property.  The population and jobs in Arizona are booming!

I wish i lived there or knew somebody I can trust to invest down there.

This is a pretty interesting article on when the next crash will begin.  Year of 2024.

https://www.extension.harvard.edu/inside-extension...

The market can turn at any time however but I find it pretty accurate if all things go as planned.  Unfortunately, not all things go as planned.  I see another terrorist attack (hope this doesn't happen) on the U.S. soil bigger then 9/11.  This type of attack should be enough to disrupt the real estate markets.

I'm not having much luck in Illinois.  Property taxes literally kill deals.  There's a few spots in Illinois that cash flow but then your location is either a war zone or close to it.  Maybe I'm not looking in the right places but honestly, I don't see good investments anywhere.  I live in Orland Park so I think I'll put my efforts towards northwest Indiana (Highland Park, Schererville, Dyer, etc.).

I wish you all the best of luck! I will continue to look for a deal in a good location (12% ROI, 100-200 per door).

Thanks for the reply Jeff.

I ended up not purchasing the property.  One of the reasons for not purchasing the property was because the property would not be worth 150k after repairs.  You are absolutely correct Jeff.

I’m back on the market looking for a deal!  

Thanks for the reply again Aaron and thanks for replying Bob.

I feel like $30,000 is a pretty healthy repair budget.  I'm also calculating 20% of the rent in capital expenditures and maintenance ($440 per month).

I did run the rents through rentometer.com and the average is $950.  The units are a little spacious however, over 1000 square feet each.

I'm dying to see the leases and other possible documentations.  I'm still waiting on them.

It's such a difficult decision to make.  I don't want to miss a deal cause I'm too afraid but I also don't want to make a costly mistake that will affect my life down the road.  One step at a time I guess.

Thanks for the reply Aaron!

I am surprised myself the tenants would pay that much also.  I’ve been waiting for leases, tenant estoppels, etc for a couple of weeks now.  I did notice on truilia that they were looking for a renter for unit number 2 which was last updated July 1, 2018.  I did meet the tenants with the owner at the 2nd unit and they seemed pretty quite.  

I did attempt to get the owner to pay for the repairs or do some of the repairs but he said no.

I can get out of this deal pretty easily.  I didn’t realized there was so much to repair till after the inspection.