All Forum Posts by: Michael Moskos

Patrick, thanks I am in the process of checking the local ordinances pertaining to rentals. I have run into this issue pursuing SFH in different student rental markets. For example, one school does not allow you to rent to 2 unrelated parties. The only time the ordinance does not apply is when a sibling of yours lives in the property. I have learned many investors do not follow the ordinance because the monitoring/tracking controls lack resource. Although, I do not want to get involved in REI as someone that is "cheating" even though the chances of being caught doing this are low. Thanks for the great advice and experience Patrick!

Patrick - That is great that you are acquiring your 10th rental property as a student rental! Surprise visits, electric payments by students, and utility ideas all make sense. I will make sure to leverage these items when the time comes. The property is a 5 bedroom 3 bath. Student population is 11,000. I am trying to understand the market to determine market rents. Many of the properties need cosmetic updates and are likely yielding slightly lower rents because of this. Although, I have learned the student population base in all schools in Illinois (besides ISU) has been declining due to the state government de-funding grants. I also found out from an investor in the area that many students in todays day in age do not want to live with random roommates and thus will rent out with people they know. The risk here is a 5-bedroom requires 5 "friends" to agree to rent. Although, this property is 1-block from the campus and near a sorority house, which leads me to believe the location is an A+. I was told the seller is looking to sell because he is older and does not have the fire anymore. Thank you for the advice! It really means a lot that you take time to help new investors. Thanks!

Michael - Love the fact that your first investment was 5 hours away! How did that turn out for you? Has it been successful? Any major challenges or scenarios that have happened that you either did not anticipate? Thanks for the comment and advice!

Dear Bigger Pockets community,

I am working on acquiring my first rental property. The property is a student rental located in the Midwest. I am from the Chicago suburbs and the property is 3 hours from my residence. I have been told my first rental should not be so distant. Based on my market analysis, the numbers are in my favor and work for this property. I was hoping to solicit feedback from the community as to any experiences or advice you may have regarding this. My objective would be to hire a property manager.

Here are the numbers:

Purchase Price: $90,000

Monthly Rental Income/Revenue (Based on past and current rents): $1,300

Monthly Mortgage: $365

Expenses (Includes Property Manager, Maintenance, Utitlityes, Property Taxes, Insurance and Other Misc.: $630

I have my Cash on Cash return at 17% which is higher than my ROI%. Based on this I am also meeting the 1% rule. The numbers do meet my criteria, but I want to make sure I account for other factors such as property management risk, risk of living far away, etc. I was hoping to solicit feedback/experience from anyone who has been in a similar situation or has a lot of experience. Thanks BP Community!

Robert, Thank you for the in depth response! This information was very helpful. In the last week I took your advice and reached out to numerous associations. Not only was that time consuming (trying to speak with the right person and find the number), but I was shocked to learn about how anti-AirBNB friendly they are. Based on data I have pulled related to airbnb revenues compared to rent revenues, my new approach is to find multi-unit properties (which was my initial approach), lease one unit, live in the other and AirBNB my unit on the weekend. Also, I might be potentially interested in hiring a property manager for my property! I am glad you reached out! Thanks!

Maria M., this is very helpful! What a great source of data. Thanks!

Thank you all for the great information! I am a young professional looking to begin my REI journey. After educating myself I am in the process of taking action. I have a question regarding the AirBNB and vacation rental market in the Chicago and Greater Chicago Area. Do the Chicago suburbs (such as Lake or DuPage county) have vacation rental/airbnb demand? I am looking for a duplex in these areas but they are very uncommon and for the most part legal non-conforming. Most of the duplex's on the market do not sell because of the zoning status. I am wondering if anyone has experience with this and or vacation rentals in the suburban area? Thanks!

As a millennial and recent graduate now in the workforce, I cannot tell you how hard it is to not move to the city. I am living in my parents home in the suburbs. Most all of my recent graduate friends are eager to move into the city if they have not already. It seems the millennial generation (my generation) prefers to rent and the standard "american dream" is shifting to an alternative approach. I myself am trying to get into REI in Chicago. I have also read the statistics about more people leaving then coming into the Chicago and Greater Chicago area. Although, I see this as a great opportunity. Rents are still very high in Cook and DuPage County, and properties are becoming affordable. Also, Chicago is still ranked in top 3 travel destinations of United States (in terms of population). I can submit another post with data supporting this. Thanks all! Let me know your thoughts!

Hello fellow BiggerPockets investors and members. I am a 23 years old, recentcollege graduate (Accounting) with little debt. I have been passionate about Real Estate for the last 2 years of my college career, and can not stop educating myself. The minute I obtained a job I began aggressively seeking a deal. Any deal whether it be a student rental, wholesale (calling distressed FSBO sellers), single and multi-family homes. The problem is I have spent 100's of hours networking and making phone calls to find deals, but have struggled with multi-family (primary focus) in the Chicago-land suburbs (do not meet my criteria).

I realized I need to refine my approach. I used to be the most anti-condo friendly person out there. Although, after briefly educating myself, I believe a methodical and careful approach can lead to a strong condo investment. I am looking for some advice and education on the Condo market in chicago-land area. For example, because my capital is currently low, I cannot fund a 20% investment downpayment. For the time being, I am looking to by a strategic investment (condo at a discounted price in a good market) and potentially AirBNB it on weekends and even some weekenights. I am wondering if anyone has advice or experience renting condo's with AirBNB? I know there is associated risk with HOA guidelines (relative to the HOA). I am wondering if anyone has had success (positive cash flow) doing this? I love any and all advice and am 100% open to learning. I really apprecite you all taking the time to read my lengthy post, and look forward to networking with you on BP!