All Forum Posts by: John Leake

Hello @Carli Schlaker, The best way to get started in my mind is the house hack, so good on you for looking into that to begin! Bigger pockets will certainly be a great resource for information for you and the calculators are a great way to vet deals I use them on all my deals so that can be tip number one. Secondly don't hold out for a perfect deal because they don't typically exist on their own, you have to make them. It's ok to spend a little too much money on your first deal its how we all learn what works what doesn't and where your specific strengths will lie. The MLS can be a hard place to find the deals you are looking for so it may be more cost and time effective to try reaching out to small multifamily owners directly. I don't watch the Chicago market closely because its about 2 1/2 hours from me and I'm currently self managing all my units.

I would also recommend the book Managing rental properties by Brandon Turner. https://store.biggerpockets.co... Its a great overview of what to expect finding and working with tenants. I think in the beginning you'll want to mange yourself so that you know how the process should work if and when you decide to have someone take that part over for you. This will kind of help you vet property managers in the future but also help with doing the day to day till you are ready to let it go?

I also use the Bigger Pockets leases which they have one specifically for Chicago. A Pro membership is  less than couple hundred bucks and the leases alone are worth that.

Regardless take small consistent steps toward your goal and you'll make it just fine best of luck to you feel free to reach out if you have any questions!

@Miguel Talamantes That makes perfect sense! Sorry I wasn't more informative, I wondered if I was missing an opportunity to earn some extra revenue on my properties through laundry. That is awesome cashflow, congrats on the investment. Hopefully someone will pop up that can make a recommendation for you. You may be able to reach out to a local laundry matt or even visit one to see what they use especially if you can find a larger chain location! Best of luck to you.

I have a couple 4 units and for both of them I decided to have a company come in and handle the washer and drier. They set the prices, handle repairs, and take tenant calls. I have no involvement except for a small check once a month from them as my cut. I did not try it on my own but felt like the return from those machines was likely not going to be high enough to justify the extra work involved. I am curious of your experience though what kind of income you make off of an 8 unit and if you feel it is worth it? 

Your return as an investor will be better if the tenants pay utilities. Anytime you can take an expense off your books the better off you will be. It also helps make your expense more fixed instead of having a big jump in the gas bill in the winter and the a jump in the electric in the summer. With most utility providers you can sign a landlord agreement where when a tenant leaves and requests a shut off, it's automatically switched back into your name. It is such a time saver. I would check your market to see what others are doing but its typical in my area for the tenants to pay utilities. As an investor I would also rather purchase a property where they are divided for the above reasons.

No problem happy to help!

I believe it is called a pledged asset line of credit, basically the loan you take out is secured by whatever asset you declare. You could also use margin on the stocks but rather than buy more stocks use that money to invest in real estate. Margin interest is typically low from what I have seen offered.

I wasn't at the webinar, however if I had to guess he was looking to rent by the room. There are some more expensive areas that this can be a great way invest. You would want to check your local laws on renting by the room and make sure you aren't going to get in trouble for renting this way but it could make the difference in an expensive or competitive market.

Unless they are in breach of their lease in some way shape or form you will likely be required to honor the lease. However if the deal makes sense and its just a matter of waiting the lease out it will likely still be worthwhile. Part of a good deal is having to work through the mismanagement of others. If you can afford to float the property or even better if it cashflows now I wouldn't be as concerned about the short term. I'm from the United States but this is more general advice.

I've never heard of a bank underwriting that way. They want to know you will pay back the loan and have criteria to vet for that. What I would say is that it can be nice to move to an area without the commitment of a home purchase. You'll be able to check out areas of interest and take a little more time in deciding exactly where you want to purchase. If the bank you reached out to for that told you that i would look elsewhere.

The first one is always the hardest! Nice work good luck moving forward.