All Forum Posts by: Daniel Guerra

@Micah Leestma Best of luck and welcome! Feel free to ask any questions.

@Jack Plantin

Check out https://www.neighborhoodscout.com/in/hammond

Overall, it's probably at a below average spot in Hammond. Still feels like a Class C area however.

You can analyze it to death and still never be 100% sure. As long as your cash flowing and your willing to acquire a job. Being a property manager is a job. You will be dealing with tenants and toilets.

I would add property management fees to see if you truly still cash flow.

I agree with @Ramon Flores, try to get a loan for 20% down and do your best to lower the offer price.

Best of luck.

@Jack Plantin

Deal sounds good. 

Are you buying in a class C or D neighborhood? Is the neighborhood steady or declining?

Definitely be conservative with your numbers and have other exit plans.

@Kevin Bennett

Welcome to BiggerPockets! 

You can take a look at some class C properties in Hammond, Indiana. There's plenty of other areas you can look at but they will be class D properties. I don't suggest you look at those unless you team up with somebody with experience. 

Best of luck!

Investment Info:

Single-family residence fix & flip investment in Hammond.

Purchase price: $50,000
Cash invested: $25,000
Sale price: $135,000

Fix and flip.

@Derrick StClair Give me a call. I need to know more about your current financial situation and future. There are so many directions you can go at the moment. This virus may play a bigger role in your Real Estate market then most. I can help at no charge and give you my best advice. Best of luck!

@Dickson Adeyemo Make sure to run the numbers. Use the biggerpockets rental property calculator. Be conservative with your numbers also. You want to be cash flowing. Keep in mind, property taxes in the Chicago are insane. It will eat a ton of your profits.

Personally, I avoided Illinois (came close to purchasing property but wasn't meant to be) because of property taxes and decided to venture out of state.

Best of luck!

@Suni O'neal 

Hammond Indiana is a pretty big area. There's some good spots and not so good. Overall though, Hammond has been making improvements and I like the direction it's going in. In 2024, there's a planned train line that will head north and south within' Hammond not too far from your property. I fixed up a home in Hammond and it sold fairly quickly. 

I think your deal is Ok. You won't lose your shirt over it but make sure you have a private company do an inspection on the property. Don't let the turnkey company do it for you. 

Make sure to run your numbers and that you will be cash flow. The Hammond market won't appreciate like crazy.

Best of luck!

@Justin Smits I contacted the mayor of Hobart and he forwarded my email to the building department and the head building inspector. All is well.

Thanks!

@Melissa Rios @Scott S. @Henry Lazerow @John Warren @Clint Votruba @Christian Moreno @Peter Halliday @Ian Rowland

Here's my perspective.

The unemployment rate has jumped up pretty fast. I have been hearing reports that at least 30% are out of work (personally I lost my W2 job and I know others that have lost their job so may be accurate). With this in mind, it would be nearly impossible for most buyers to get a loan. Logically, the buyer pool has shrunk for now and may take some time before they are able to get a job again. China is having a hard time getting back to normal. Businesses after the virus attack are not nearly at full strength which is keeping the unemployment rate up.

There are people that are afraid of putting their home up for sale but will need to wait a little more to get more accurate data. I think the buyer pool is much more affected by this virus then the seller pool. So, we should see a steady increase in home inventory.

The big question is, how long will the shelter in place go on? That's the million dollar question. Below is an excellent read about what may or may not happen and how it will affect the real estate market.

https://assets0.biggerpockets.com/uploads/user_file/file_object/2120/Economic_Downturn_guide__1_.pdf

In conclusion, every market is different within the US but this virus is affecting everybody. Personally, I'll continue to have my contractors work on my two rehabs in Munster, Indiana and Hobart, Indiana. Also, I'll continue to expand my real estate business, look for my next deal, and network for investor capital.

Please be safe everybody. God bless you and God bless America. Reach out and connect, I don't bite. :)