All Forum Posts by: Jeff Burdick

I am a beginner and my goal is to invest in rental properties and create a steady longterm cashflow. Just for the heck of my knowledge, from past couple weeks I have been analysing properties that are listed on realtor.com and zillow.com using BP rental property calculator. And, every property i analysed is a negative cashflowing property. I have been analysing 5 properties everyday from past two weeks but none of them a positively cashfowing. I want to ask you guys if anyone of you is using BP rental calculator and what do you guys think about it? Thanks in advance.

What type of properties and what locations? If you're looking at the A class neighborhoods in the city of Chicago, you're going to find a lot of properties that don't cash flow.

1 Vote

Originally posted by @Electra Reiff:

Hello I am new to all of this but would like a lot of help on where to start. I’m looking into starting a coffee shop in downtown Chicago I was wondering if starting under an apartment complex in a commercial area would be better or a shop downtown. Also would it be better to buy and build or buy and renovate and remodel?

Do you have experience at running a coffee shop or as a barista? Or running a similar type of business? Real estate prices in downtown Chicago are astronomical. Are you looking to purchase real estate or lease?

IMO, I would not open a coffee shop unless you or one of your partners(if you have any) has significant experience in that field.

If you have that, I would look for vacant retail spaces in up and coming neighborhoods with great foot traffic(near an L stop would be huge). I'd also map out all of the starbucks, dunkin donuts, and other local coffee shops and try to find gaps on the map where there isn't another coffee shop within a half a mile or more.

0 Votes

Originally posted by @Michael Ablan:

@Johan K. - I've always heard it's a tough market. Really easy to be bullied by the city for permitting/code related matters. I also hear there's a strict "refund your tenants deposit + interest or else risk $10k+ in fines and legal issues." I've also heard you REALLY need to know your market segments because the values can drop $100k+ within 1 block.

Common practice is to not use security deposits and instead use non-refundable move in fees for the reason you stated. Thats what I do with all of my units and its what all of the other investors I know do as well.

You are correct that things can vary significantly block by block. You need to really do your homework and study the maps to fully understand the geography...and also keep in mind that it is always changing.

1 Vote

Originally posted by @Rabih El-Khoury:

I talked with a few brokers who cover towns near Chicago, e.g. Lisle. Their input was there isn't inventory for BRRRR left. Also, investments are more for appreciation vs decent cashflow. That's all I can share.

This is not entirely true. While it is true that many have been picked over so to speak, there are still BRRRR deals left if you really research thoroughly. I'm set to close on one in a couple of weeks.

Appreciation vs. cashflow all varies on the neighborhood. There are class A+++ neighborhoods in Chicago, D- neighborhoods in Chicago, and everywhere in between.

3 Votes

Originally posted by @Joett Ocasio:

@Jeff Burdick Up to 20k for the property itself, in terms of city or suburbs which ever one has a better clash flow.

I’m not really focused on appreciation but it would be nice to have both cash flow and appreciation.

I spent part of my child hood around the Humboldt park area and I came back 20 years later and went to the same area while I was on vacation in 2017. So I honestly don’t know what are the good and bad areas.

20K for a property? You're not gonna find much.

1 Vote

Chicago, Illinois

Originally posted by @Joett Ocasio:

I've been looking into real estate in Chicago since it seems like a good place to BRRRR. Any advice or info would be greatly appreciated. We're also going to need an agent, contractor, property manager and lender.

Hey. I am an investor in Chicago. Give some more specifics. City or suburbs? Price range? What class of neighborhood?

0 Votes

Chicago, Illinois

Originally posted by @Paul Vonasek:

@Brie Schmidt What neighborhood do you recommend to look at to purchase? I'm going to scout the neighborhoods when I arrive. I'm blown away at the cost of homes in Chicago. But because there cheap does not mean that there good deals. I say one home for 50k and then went to rentometer and the rent was 1100 per month. This is a great property to brrrr

Where was it located? A 50K home is going to be located in a class D neighborhood.

0 Votes

Welcome. I am an investor in the city. What area do you live in? What area(s) are you looking to invest in?

0 Votes

Originally posted by @Bryan Bokowy:

Hey everyone! I'm currently in the process of purchasing my first 4 unit multifamily property in Chicago. I want to make sure the numbers I have in my pro forma are as accurate as possible before moving forward. I have a few questions below that I'm hoping I can get some help with.

1) Taxes - I have the annual taxes that I took off Redfin.com from 2016. I'm sure they've increased since then, what the best way to estimate my current taxes? Also, would taxes be lower as I'll be living in one of these units?

2) There is currently laundry on-site in the basement for the four units. I have around $2k built in for water/sewer/garbage. Is that realistic? A friend of mine invests just outside the city and his water/sewer/garbage pushes nearly $3k and that's for a 3 unit property. Also, I'm told that adding washer/dryer in each unit would increase rents. Has anyone done this? I just had an inspection done and the inspector advised against it. He said all it takes is one leak (which is inevitable) from the second floor to cause a ton of damage. If anyone has put washer/dryer in units for additional rent, what has your experience been like?

3) Rents - I've been looking on Craigslist and Trulia, etc. for comps on what I can get for rent. However, there is such a huge range that it's hard to tell what is realistic. Does anyone recommend other avenues?

Thanks! Any help would be greatly appreciated!

You should be able to get the most recent accurate tax info. If it was on the MLS, it should be in the listing. Otherwise, your attorney should be able to provide this for you.

In terms of in-unit laundry...yes, it will add to your rent, which will add to the value of the property. There are precautions you can take for potential leaks. Our washer sits in a pan with an emergency drain, so if the washer leaks, it won't cause any damage. It is smart to take these sort of precautions for above grade washers IMO.

I like rentometer to give you a rough estimate of rents. But if you want a precise number, I recommend having a quality broker do a CMA for you.

0 Votes

Originally posted by @Rj D.:

@Henry Lazerow I would disagree. You essentially created a list of already gentrified and mature markets. The chances of finding deals in those areas are SLIM and nearly impossible without having to do a HEAVY rehab.

You have a very different definition of "gentrified" than I do. The neighborhoods Henry listed are all in the 'up and coming' category as far as I'm concerned. Some have 'up and come' more than others...but I don't consider any of them fully mature. They're not Lincoln Park.

0 Votes

Chicago, Illinois

All Forum Posts by: Jeff Burdick

Jeff Burdick has started 5 posts and replied 501 times.

Post: BP rental property calculator

Post: Starting a new buissness for the first time

Post: New to Real Estate in USA, is Chicago a good Market to invest?

Post: New to Real Estate in USA, is Chicago a good Market to invest?

Post: Looking to BRRRR in Chicago

Post: Looking to BRRRR in Chicago

Post: Why is properties so cheap in Chicago Illinois's?

Post: Hi! I'm Henry from Chicago, IL.

Post: House Hack In Chicago!

Post: Best up and coming neighborhoods in Chicago