All Forum Posts by: Eudith Vacio

Fellow BP investors in the Chicago area: I want to pick your mind. 

I am closing on a 2 bedroom/1 bath condo in Grand Boulevard. I was able to get a decent deal at $70k while it looks like the comps in the area for 2bds condo's are selling around $110 - $130k. Rents in the area go from about $1,000 - $1,200. 

I would like rent it out since I think the area has much more potential for appreciation but would also consider selling as I know this is a pretty good time to sell. 

What would you do?

Thanks!

@Claudia Dallosso

Welcome to Chicago!

Are you looking to rent or buy a home to hold on to long-term to rent and live in? The 2% rule is a general benchmark that you can use but doesn't always work out but doesn't mean you don't have a great deal. You may want to use other metrics to identify whether a property is a good investment such as cash on cash ROI.

@Austin Drew welcome to the BP community and Chicago! 

The best way to get more comfortable is to get in and DO IT! I would recommend getting started with your loan approval NOW. Make sure you credit score is good, ideally above 720 to get the best terms, and you have cash reserves. Keep your eye on the market, start running the numbers on potential deals to become familiar with the various neighborhoods in Chicago.  I have a template that I use to analyze my deals. PM if interested or if you need assistance. The best way I learned was to actually start the process, and I attended networking events where I gleaned from many investors. Meetup is a great way to find events and BiggerPockets has events on here as well that you can search on by zipcode. Goodluck!

@Renauld Edwards

Lenders look at your income to determine your eligibility to obtain a loan along with how much you can afford. W2 income, credit score, and cash reserves is a key, unless you can find an investor to partner on a deal with. 

Eudith Vacio

@Ornuma All great questions. I am a mother at age 29 and my goal is one property every year. Certainly doable for yourself. Based on the information you provided, it may have been a better option for you to rent your condo. If buyer doesn't go through with the deal, you may be able to keep the property on the market and be strict with the offers you are willing to accept until you're contract terminates. If you moving is not contingent on you moving out, then I would start your search NOW. There are many deals out there, especially during this time of the year. You have much more room for negotiation as there not many buyers during this season. Start becoming familiar with neighborhoods and running numbers on potential deals to understand the market.

Hi @Gbemi Munis,

Welcome to the ocean of information in BP :)

Your first step of creating an LLC is the easiest. You can go to Cyberdrive, enter your LLC name (make sure it's not already taken), and the processing fee is $150 plus taxes. Then once you find your tax strategist, they will help you determine the tax entity you should operate under.

Hope that helps! 

Eudith

I am a fan of investments on the south-side. Garfield Ridge is great, near transportation and you can easily rent to families in the area. Little Village, McKinley, Brighton Park is looking good, too. These are great rental markets. 

@Scott Steele,

My friend worked in tax for EY and figured out all of the tax advantages of owning real estate. Quit his job, became a real estate agent, and is now flipping. Knowledge is power. 

I wish you the best of luck, but seems like you’ve done your research!

Hi @Esteban,

There is a meetup in Naperville. Have you heard of the Kwak Brothers? They also have a YoutTube channel. Their meetsup are super helpful and extremely informative!

@Daniel De Lima Wonderful! Are you looking for multi-families to reside in and house hack? Or solely for investment purposes? My properties are on the south-side of Chicago near Midway airport.