All Forum Posts by: John Warren

@Drew Murtaugh it is going to be very hard for you to do this type of deal on your first go around. Likely the reason it cash flows on paper is due to a very large construction component that you might be underestimating. Foundations actually don't come up that much in Chicago.... so many awesome brick properties. If you have an issue, it gets costly quickly. 

@Jack Lindstrom you will want to hit the streets hard if you are looking to pick up two deals of that size. Inventory is super low in the good areas of Chicago. I bought a 12 unit in Berwyn last year, but I have seen very little otherwise the past two years. 

@Joseph Alfie the first thing you should do is go walk the property. Do it in the afternoon when everyone is out. Then you should go back later in the evening like around 10 p.m. You will know if you feel comfortable almost instantly. 

The south and west sides of Chicago have historically had a lot of issues, and many investors have done well there. Also, many investors have gotten crushed in these areas. It all depends on your investor profile. If you are very, very hands on, you will do well. 

@Jack Lindstrom welcome to the forums! Where are you located? That will be the main driver in which meetups you attend. Definitely you are in the correct place here. 

@Connor O'Brien yes for sure. What size job are you looking to do? Is this a full remodel? Rod out? Sewer work? 

@Brie Schmidt thanks for taking the lead on this. 

@Will Mejia it sounds like you don't want to deal with residential tenant issues anymore, which is fair. Why not look at things like triple net or industrial? Industrial is supposed to be a bit harder to enter initially for folks who don't have capital, but the tenant base is responsible for their units (not you). 

You also could find a partner to do the operations so you can avoid the parts that stress you out. Residential real estate has always been a great spot to invest since it is easier to get in/out than other sectors. Just figure out a strategic partner and you can still have exposure to it. 

@Anupam Banerji I can send you a great broker who handles all of our larger buildings. He insures a ton of buildings on the south side. 

Sounds like you recently got this deal under contract. Congrats!

@Lindsey Matejak we manage a lot of apartments in Berwyn and Cicero where the 2023 flooding happened. A lot of these are garden units. So far, this disclosure has had zero impact on leasing. There are so many forms in the lease packet, that this flood disclosure doesn't even get noticed. This is especially true since everything is signed electronically. I would just over disclose on this and move on. 

@Jarret Jarvis I can't imagine many house hackers hire a PM. I have known exactly one in my 10 years in the business. It takes enough of your margin, which you don't have because you put so little down in this market. I could see hiring a PM once you move out after a few years. We have taken over several buildings in Berwyn from clients who have moved out a few years back, and that I get.