All Forum Posts by: Sam Lee

Im looking at a couple deals around my area in Jefferson Park Chicago. I was wondering if you could check out this deal to see if this makes sense

3 unit house in Jefferson park

Purchase price: 185,000
25% down payment
Mortgage will be 800/month
Total month's rent will be conservatively estimated at 2300 (900 for two of the units and 500 for the basement)

50% rule
2300 Rent
1150 Expenses
1150 NOI
less 800 mortgage
350/month cash flow

so what do you think of this deal? I know I can find better, but I know this neighborhood very well since I grew up here.

Good post, this is something I didn't think about. I'll call them up and ask.

I will need a property inspector and also a good contractor. Does he do good work? please send me his info. thanks, Sam

I found a sfr 3/1 in round lake park IL. The original listing price was 50k, they lowered it down to 40k. I offered 30k. This is a short sale by a small bank, so I think they will want to negotiate it or perhaps take the offer. The house sold 4 years ago for 89k.

The house has no appliances but everything seems to be in good shape. It needs a deep cleaning and a few repairs, but that's about it. Of course, hire a property inspector (there may be more things, I just don't know).

$30,000 purchase price
$1,500 appliances
$3,500 repairs and cleaning

I hope to rent this out for $1000 a month. I posted some ads or craigslist just to see the responses, and I got about 25 emails so I am sure I can rent it out once its all cleaned and presentable. $1000 may even be a little below market.

The neighborhood:
Working class, northwest suburb 2 hours away from downtown chicago by car. Has a train station to the city. Good demographics, not a warzone by my analysis. The RE market has collapsed with some houses halving in value in some cases.

What do you think about this deal? Also let me know if I am overlooking key factors. This is my first time purchasing a house. My objective is buy/hold and get decent cashflow

Hi Sirck,

you can find cash flowing rental properties in california. Maybe not La, but draw a 30,40,50, ect mile radius around your location and search for properties.

I highly recommend you not invest out of state until you have actually searched and searched for properties in state. On the bigger pockets website click on "properties" on the top and type in "california". You can find investment properties in state, or get a feel of where to look from there.

I inherited property out of state and it takes a lot of effort to manage it. The key to being successful out of state is properly managing the property manager of the property and ultimately keep costs down and increase cash flow. I would not suggest a beginner to start investing out of state. you need to assemble a team that you trust to help accomplish your goals (property manager, contractors, realtor, real estate attourney,ect). It's all a big headache and takes a lot of effort and time to actually find smart, competent people that you trust.

Keep looking and fully assess the risks

Good Luck!

Hi,

recently im seeing these awesome deals for 3/1 houses in the outlying suburbs of chicago, areas like Zion and Round Lake. Im seeing these houses go for as little as 15,000 all the way up to 50,000 with updates. I would like to ask, how do you all predict which markets will have high rates of appreciation?

My strategy is to buy and hold long term, and would like to find smaller towns that have that rapid appreciation potential.

thanks in advance

Update:
After interviewing many PM's I found a PM with 30 years of experience and 100% occumpancy rate. Im still waiting for him to give me references to double check, but if all goes well, he will be the new PM.

Now just gotta fix, clean, and advertise the place

I have two PMs lined up to call, and have researched the resources in BP in what to look for in a good PM. Wish me luck!

Thanks for the replys. Yeah, I agree with what is being said. My gut feeling was telling me that this particular PM was not good either.

Anyone know property management companies in Tulsa, OK?

Thanks

Thats what im thinking...Fire the PM, and find a GOOD one.