All Forum Posts by: Holden M Lombard

@Norberto Sanchez Welcome and congrats on making the decision to enter into real estate investing! I'm just like you: recently decided to take the leap, learning the ropes, visiting properties and analyzing the deals. I haven't done any deals yet but I would encourage you to network on this Forum, go to the next CCIA meeting (your local REIA chapter), and listen to the BP podcasts with a pen and paper. There's lots of info in there. Feel free to ask any specific questions you have and I'll do my best to help out.

So helpful! Thank you!

@Ibn Abney Thanks for the response! Wise words and sound advice.

Its W 112th and S Princeton near the tracks.

Can you speak more about what makes you nervous in a situation like this? What other aspects of due diligence should I pursue?

I can tell you what I've done so far: I've walked through the house 2x and took a good look at everything, met with the property manager, discussed fee structure, and other properties they manage, I looked at the prospective tenants and tried to get the most accurate numbers possible. I may be missing something, but it could be one of those "You don't know what you don't know" situations.

Also, there's nothing stopping me from going more North and east. This opportunity came from a relative of a good friend after months of discussing real estate, book reading and showing interest in the market. The seller and my friend are in heavily involved in Chicago real estate and they seem to have my interests in mind. This could be an opportunity to tap into their network and experience but I know I should investigate thoroughly beforehand. 

Sorry for the double post. I just learned that I could @ people

@Quincy Lockett Thank you for taking the time to respond. That makes me feel better about it.

1. I will definitely get my hands on the background checks from the company before closing. 
2. I'm glad that someone who knows the area was able to find me. This is very helpful
3. Regarding the $1150/month: I asked the same question and the seller's angle was wear and tear. He mentioned that a 3BR voucher allows for more people in the apartment which contributes to excessive wear and tear. I can understand this logic, but I don't understand how the number of people in an apartment are enforced whether or not they have a 2BR or 3 BR voucher.

Thank you so much for responding with some much needed info.

@Crystal Smith Thank you for the recommendations. I'm definitely adding them to the list of things to do. 

• I do have another inspector lined up and I'll ask If he has any information on  roofing certifications as well. 
• I'm meeting with property manager this week and I'll go over the entire lease. Regarding the Section 8 Inspection, I'll get the Inspection ID from the seller (along with calling HUD).
• Yes the electric and gas are separate. I'll look into homeowners warranties this week and include an estimate for the common area electric in the spreadsheet. 
• By security I'm assuming you mean an on call alarm system such as ADT. Or do you mean things like window bars and a fence?
• Did I make a mistake in including the taxes and insurance with the mortgage amount? I'm looking at 2200 for insurance and 4000 for taxes, annually (again, generous).

Thank you so much for the information!

Thanks for the response! Wise words and sound advice.

Its W 112th and S Princeton near the tracks.  

Can you speak more about what makes you nervous in a situation like this? What other aspects of due diligence should I pursue? 

I can tell you what Ive done so far: I've walked through the house 2x and took a good look at everything, met with the property manager, discussed fee structure, and other properties they manage, I looked at the prospective tenants and tried to get the most accurate numbers possible. I may be missing something, but it could be one of those "You dont know what you dont know" situations. 

Also, theres nothing stopping me from going more North and east. This opportunity came from a relative of a good friend after months of discussing real estate, book reading and showing interest in the market. The seller and my friend are in heavily involved in Chicago real estate and they seem to have my interests in mind. This could be an opportunity to tap into their network and experience but I know I should investigate thoroughly beforehand. 

I'm right there with you, Jordan. Stick with it!

Hi All, I'm excited to get started in real estate investing. A little about me so you know who you're responding to: I'm a Notre Dame grad, Chicago Public Schools Physics Teacher, originally from New Orleans, La. I'm brand spanking new but I've listened to many BP podcasts and short videos, I've read several books, I've been lurking on here for a bit trying to absorb the great insight from the community, and I've done my best to analyze what I know to look for. Now I would like to ask you all about a potential first deal, is it as good as I think it is?...thank you in advance for your help... Here we go:

- West Roseland area of Chicago, 60628

- Turn Key 2 Flat, 3BR 1 Bath in each apartment, unfinished basement

- Complete gut renovation last month by seller (everything except the roof is new)

- Section 8 inspection completed by seller

- Property management company hired by seller to conduct all business with tenants at 8% rental income per month. This company claims to have 2 vetted and qualified section 8 tenants ready to move in at 1150/month post closing

- Asking price is 165k

- 27,600 annual income

- I qualify for a grant that will cover the down payment and seller will cover closing costs. 

- Here are my generously estimated annual expenses

What do you guys think? What am I leaving out?