All Forum Posts by: Kobi Walsh

@Pancham Gupta Thanks for your advice and warm welcome! I've listened to most of the syndication podcasts, but I imagine there are plenty more great stories on the BP community so was just wondering if anyone had any further insights they were willing to share. Will definitely check out the books recommendations, thanks again!

Hey BP! Was wondering if anyone with experience in syndication had any stories they were willing to share about how they got into their first deal, the outcomes of the deal, and any advice for people looking to get into syndication down the road. Thanks! Kobi

Thanks so much for your replies!@Travis Weitthoff

@Travis Weitthoff

@Travis Weitthoff - I was wondering the same, the seller is a firm that specializes in developing and stabilizing multi family investments on the South Side of Chicago, so I'm going off the assumption that the numbers they gave me were from last years actuals, but not positive. Vacancy/collection loss they gave me at 3%, but the building is currently fully tenanted. What would you suggest as to the best way of making sure that the numbers they are giving me are accurate? 

@Omar Khan- Yeah, the numbers seem to work out too nicely, but not positive. The neighborhood is class C leaning more towards  B, but the property itself is B leaning towards A. The tenant profiles they have given are all have been living there for 5+ years and are all older with a good rent history. Would you recommend speaking to all of the tenants living in the property to confirm rent prices and confirm their backgrounds? I have not received their metrics for vetting new tenants or any tenant backgrounds, but they told me two units are section 8 so at least some idea of stability there. Great suggestions, thanks! I'll bump up the numbers, you're right I shouldn't fully bank on their numbers being accurate. 

Hey BP, 

I'm looking into a 455k 11% cap turn-key 7 unit fully managed off-market property in Southern Chicago, and I'm trying to figure out if I'm doing something wrong in my analysis. The property is in a C grade trending towards B grade neighborhood, close to shopping, public transport, and a solid high school, has all new windows, updated roof, masonry, electric, and rear porch, and one of the 7 units was fully rehabbed recently. The building consists of 4, 2bd 1bath units, and 3 1bd 1 bath units. 2 units are section 8 and the rest are cash paying tenants. All great tenants that have been in the property for 5+ years, and are on the older side with good rent history. All units are currently tenanted with a monthly rent roll of $6,416. Professional management of the property is currently in place and can stay in place after the sale making for a smooth transition. Also good value add opportunity if rehabbing the other units could get the rent roll to about $7,500/mo.

By the bigger pockets calculator, I'm seeing the property at 11% cap, ~30% cash on cash ROI with ~$2,500 monthly cash flow. All numbers I am getting from the provided P&L.

Is this a solid deal, or am I doing something drastically wrong in my analysis?

Thank you for your help!

Kobi

Hey everyone!

Wondering if anyone has any recommendations of incredible real estate agents who they've worked with in Chicago?

Thanks!

@Weston Harding I've definitely considered house hacking! I'm currently bootstrapping and trying to live as lean as possible at the moment, so I've been able to live with family in Chicago. So I'm in a unique position where I am not constrained by rent expenses and can look to this first property right away as a positively cash flowing investment. Currently aiming for a property with low rehab costs, but as I gain more experience I definitely want to become comfortable getting to the point of full gut rehabs and ground up too.

@Peter Ledger thanks for the advice! In the areas that I am targeting in Chicago, I am expecting low to moderate appreciation with a buy and hold long term rental strategy for cashflow.

Thanks Travis!

Hey everyone! My name is Kobi, I'm 23 years old, living in Chicago, and finally looking to take the plunge into buying my first property. I own a luxury streetwear company in India and a contemporary art gallery focusing on virtual reality art, both of which I am currently managing from Chicago. I've always known that I was going to want to get into real estate investing early on in order to build long term personal wealth, but only recently have I begun to start heavy research and reading as much as I can into buying my first property. 

I've seen so many of my friends start their corporate jobs making huge incomes, living in expensive apartments, spending all their money on avocado toast, hating their lives, and not actually saving much money year on year, which I've just never been able to rationalize. To me, life has always been about doing something that I truly enjoy, while trying to set myself up for long term financial freedom by creating multiple sources of passive income. So it always seemed natural to me that real estate investing was something that I wanted to eventually end up doing. 

My personal goal right now is to buy at least one positively cash flowing rental property by the end of the year in the Chicagoland area. I've been trying to read as much as can in order to make this first investment successful, and I would love to meet anyone else in the area who would be willing to share their knowledge with a motivated newbie trying to dive into their first investment property!!

Cheers to building long term wealth instead of short term income, 

Kobi