All Forum Posts by: Kevin Smoter

Hello, I currently already have an agent that I am working closely with, so I am not really in the market for one. I have a question about a buildings age in Chicago. Should I be concerned about buying a solid brick building in Chicago (4 unit) that was built in 1912? I feel as if that was ages ago, and maybe should be looking at something a little newer such as 1950 and up? I know that in those older buildings they have galvanized piping that could become a huge issue? I found a building I really like, and I am going to go see it tomorrow. What should I check other than windows, foundation and roof?

Hello,

This is my first Post and question(s)! I would really like some help on. I have done extensive research on purchasing my first property, and I feel as if I need some guidance. I have been in the market since January this year for multifamily to invest into using FHA. I have the money saved up and analyzed hundreds of deals; however, whenever I find a *Good* deal I stand no chance in the market. For example I found a duplex In Kenosha built in 2003 with 6 beds and 4 baths split between the two bringin in 1700 in each and all the owner paid was sewage, and lawn. It was going for 365 and I offered 385 with an escalation clause to 400k, 30 day closing, as-is. sadly the seller got overwhelmed and needed an extra day and picked another offer... SHEESH! "On to the next". I made sure that every deal I do I have a good capitalization rate and ROI + scope out the location and connect some dots. Right now I am sitting on a property that with utils and tax included with FHA rate of 7% (trying to account for PMI ) with low rents 1600 each, CAP: 7.93% and ROI of %6.57. market rents in the area are 1850 so CAP: 8.9%, ROI: 34%. The problem I am having is a big thing I read about properties are Location, Location, Location. I want some clarity on this deal before pulling trigger. If someone were to have some experience with Chicago real-estate and have time to talk I would greatly appreciate it. This would be my first deal of my journey and I would really not want to shoot my self in the foot. I have plenty of more details, such as one unit has been fully renovated with in house washer and dryer, new construction in the neighborhood , but for some reason this property does not sit well with me. I have agents in all states around IL, sending me MLS and check Zillow on a 1day refresh three times a day. I feel like I cant find anything good, or I am overthinking it.