All Forum Posts by: Account Closed

The cashflow per a unit changes every year. First year might be $100-200 but after 5 years could be $500+ cashflow a unit depending on area. It would be really hard to make 400k a month in cashflow but off equity/appreciation not that crazy if you have a bunch of commercial buildings. 

I would personally like to stick to 250k properties so that I can have atleast 2.5 million when there all paid off and some cashflow and really take on chicago appreciation. But due to being self employed it's difficult to get right now. Might make a low offer and see what they say. 

What are typical special assesments for 40 unit buildings? That is really the biggest uknown. Are these typically $100 increases for 3 years or sometimes $5000 assessments. It's hard to tell and the building looks ill maintained. 

Condo in belmont cragin. Investor owned 50%. $105k with 10% down $10,500 and owner financing 5% 25 years.

$505 mortgage + $70 taxes + $200 assessments (includes heat) = $775 total and rents for $1100 so cash flow $325 monthly+$200 in amortization. Special assessments here and there may add $100 a month? and occasional vacancy its a 40 unit low rise. Has ac window units and no mechanical in the unit to brake. 

Granite countertops and some new drywall/paint. Flooring is old and cracked. 

Wondering what the best ways to mitigate risk of buying a condo which later restricts rentals in Chicago?

If the place is already at 50% investors is it pretty unlikely a rule could be changed as investors would never vote that way? Anything specific to look for in declaration? I am talking about low rise buildings up to 4 stories in B to C neighborhoods not fancy high rises near lake, etc. 

Wondering if any condo investors in Chicago like to share their experience. What are you budgeting for annual repairs/reserves in the typical 2br gut rehabbed low rise condo? 

Lincoln Square 180k 2br 2ba all in $1100 a month. Rents for $1800 they pop up and go under contract fast but are out there. Other areas I am seeing the occasional 2br 1ba in west town going for 220-240k which after amortization net $9000 a year on only $22,000 down at 10%. I do leasing and am confident can keep 100% occupied in these two neighborhoods with quality tenants and right price. 

Running the numbers a lot of these cash flow actually better then the current multifamilies from on cash on cash standpoint. I am seeing most multifamilies selling below 6.5 caps basically speculating on appreciation (which is never promised). The exception being Bridgeport and some deals here and there by University of Chicago (not including high crime areas). 

I want to purchase a 3-4 unit building in Whiting IN as my first real estate investment. I graduated college a year ago and do not have a full year of on paper work experience. I now work as a broker and also do leasing which brings in consistent $3-4000 a month with weekly payouts. I also have experience working as an analyst for a multifamily investment firm. Credit is over 750. I live in Chicago but choose Indiana due to cashflow and landlord friendly laws/low taxes. 

For reserves I plan to use 0 apr cards if it needed for example something major like a new roof. I have done this before with a business I had and it worked perfect never paid a penny of interest. I do have like 10k of reserves to show a lender. 

An example of what I am looking to buy is 952 W Pearl St. Whiting IN for $150k. The property was a 2x: 2br 1ba and 1x: 3br 1ba. I ran comps for the area and being conservative the 2brs would go for $700 and the 3br $800. I also have seen some nice buildings for cheaper but this one was ready to go. Could maybe lower my purchase price. Open to anything just want to get this going. 

I plugged these numbers in my Excel Discounted Cash Flow which also shows loan specs. 

At 5%apr with 20% down+10k in minor repairs its a Debt Coverage Ratio of 1.79. Leaving a lot of room for lender safety. I am assuming $10,500 in running costs+$7000 in financing leaving net income of $6100+amortization. 

Another option would be to live in the property for a year or however long is needed to get a conventional lower APR loan and just put a small amount down. My banker said due to being a recent college grad he could get me conventional loan if I found a job that pays salary after just 2 pay checks but that he can't approve me with the 1099 income right now.

I know there are some online lenders that do stated. In NW Indiana I could probably make 6.5 work. What are some good online or local ones and that allow first time landlords? Feel free to private message me. Thanks 

Can some investors on here please share real life returns they are seeing on NW Indiana rentals. Not looking for the one you hit it out of the park on but a few typical deals. 

Please include......

1) # units

2) Purchase Price + rehab/repairs

3) Yearly total running costs/maintenance (average) 

4) Cashflow over financing+running costs (include monthly payment or % you put down)

Thank you 

I subscribed to a bunch of wholesalers with the goal being to find some good off market deals but to my surprise half of them are just expired MLS listings that never sold while on market often at an even higher price and the other half aren't even good deals when you run the direct area for comps through the MLS.

For example 7525 S Kingston got sent to me twice by different large wholesalers for $395,000. This property expired in the MLS after months at $295,000. All it takes is 5 minutes of research to uncover by any realtor with MLS access.

Wholesaling properties that are better deals then whats on market is one thing but what's with these "deals". 

Think small side businesses that are nearly impossible to prove. The large credit limits are mainly from buying and selling things online which also gave me a high score. It has only been about 3 months I have clear paper trails of checks coming in from being broker. Not so easy to get approved traditionally. Recent college graduate really do not want to wait 1.5 years on the side lines. 

Funding of america does not allow first time home owners (requirement of 24 months of mortgage payment records). Not sure if velocity or the other similar services also require this? 

Feedback appreciated. The property is at 10111 S Ave. L, Chicago IL. 35% IRR with 0 appreciation projected seems almost to good to be true or am I just used to north side? Comps show as-is rentals $900 and rehabbed $12-1300.

I have driven this neighborhood and it has low crime for the southside by calumet park. East side chicago. 4 units 3brs and 1 garden. I normally run analysis on nice neighborhoods on the northside with low caps. Am I way under on vacancy or operating expenses for south side? Being so close to Indiana I assume cheaper labor can be sourced for repairs, correct? The units are usable shape/rented right now but interior is not shown. 

I did 7.5% interest as I plan to use velocity mortgage due to difficulty proving business income. 

P.S Not personally ready just yet to make the jump so if anyone else is interested I can open door for you or do skype showing for out of towners. Would be happy to meet some fellow bigger pockets members. Also ignore the 3257 n ridgeway old address forgot to take off the DCF.