All Forum Posts by: Mathios Yonan

That's a loaded question but it mostly depends on your budget and your exit strategy. You can stretch your budget further in the Bellwood/Berkeley area and a few of the South Suburbs. Or spend a bit more in an area like Wheaton, Streamwood, Hoffman Estates, or even Bollingbrook. I'm just naming random locations because there's literally about 100 zip codes to choose from. Thinking about your target spend (purchase + rehab) can help me narrow down potential markets to suggest. DM me and let's hop on a call.

The Midwest welcomes you. I'm obviously bias because I'm in the Chicago area, but I have partners constantly buying properties for ~$150k + ~$60k in Rehab and then ARV of $300k doing Cash Out Refi's based on Long Term Rentals or AirBNB, Flipping the properties, or Wholesaling the deals. Don't believe the hype of the media. All of Chicago is not falling to pieces with crime.

I'm happy to connect, understand your goals, and see if we can add value to your plans.

A word of caution-don't look for the cheapest home in town.  On paper some homes look great, but in reality, they are anything but that.  Find a place in a good area.  The cheap homes have higher turnover, lower quality more problematic tenants and more expenses.

 We seem to agree San Diego historically has been a very good RE market. 

Do you currently rent or own your home? If you rent, consider up to 96.5% LTV owner occupied (OO) vs 80% LTV for conventional non-OO purchase. This means that not counting closing costs, the same down payment can purchase 5.7x higher cost property purchased local OO.

So I question if your money goes further local or OOS. Note local you can self manage. Local you can more easily do heroics if required. Local you can leverage your local knowledge about areas gentrifying, or large zoning changes (midway district, city of San Diego ADU bonus program, etc), or large funded development projects (Chula Vista bat front, etc).

Good luck

 >I live in San Diego and it's practically impossible to get a good ROI.

This statement is very incorrect.  Case Shiller shows San Diego to be #3 in nation for total return since 2000.  Neighborhoodscout shows San Diego to be 10/10 in appreciation this century.  I challenge you to find and post a single reputable reference that does not show San Diego to have historically produced outstanding returns for a modest length hold.  

Some easily verified facts:

- San Diego appreciation has been great 

- San Diego rent growth has been great

- prop 13 protects against exorbitant property tax increases

- San Diego has one of the lowest eviction rates in the country

- San Diego has one of the lowest delinquent rent rates in the country

- San Diego has a very low vacancy rate

- historically for long holds, San Diego has produced near top in nation return.  

I challenge you to find a legitimate source that any of the above statements are not accurate. I will word your statement to be historically more accurate: it has been historically difficult to not get a good ROI.

best wishes

Hi All!

I am very new to REI but have educating myself on and off for awhile. At this point I am itching to invest in out of state properties, as I live in San Diego, CA and it's extremely hard to start in my city. I found a multi family property in Slavic Village, Cleveland, Ohio. Does anybody know how the area is? Has it rebuilt since the crash in 2008? Or is there another area that would be recommended? Any guidance would be much appreciated. Thank You