All Forum Posts by: Michael J Scanlon

If you make less than $84k then home possible 

@Jake Fugman and I run an investor focused realtor team in Chicago and lately we’ve seen a shift where we are finding a ton of great deals for clients in the mixed use space above $1m but it seems as though pure multifamily cap rates for 5+ units above $1 million are just compressed (thus values overinflated). Is anyone else seeing similar patterns?

There are areas like Whiting and nearby “suburbs” that people who work in Chicago still commute from. There are a lot of decent areas to choose from but this proximity to Chicago has kept rental rates stable. 

I think Chicago is still a great market. When considering the “big” cities in the US, Chicago is still easily the most affordable. We have much higher cap rates than your area like LA, San Francisco, Seattle, New York. So even though people don’t like the tax aspect, our rental rates make up for it and then some. Good mix of appreciation and cash flow. There are landlord/tenant laws that favor the tenant but it teaches you to properly screen. 

I’m currently in the process of buying my next multifamily. I’ll be owner occupying and the price point is between $1-2m.

My current insurance provider for my smaller properties (State Farm) is terribly priced for this property.

I’ve gotten quotes from Travelers (very high) and All-State (easily the best so far).

Who is your go to major company price wise (while still having good coverage)? Hoping to save some time as these quote calls take forever.

Who else might be competitive with All-State’s pricing?

Thanks @Jonathan Klemm

Hey @Kevin Masterson there are definitely some good house hacks in that area. Feel free to message me and I can help 

Hey @Kevin Klaas

I would absolutely reach out to @Jake Fugman. His commercial expertise is tops here in Chicago. 

@Alex Tokmazeyskiy

Its all very nuanced but likely yes, it's worth it. You'd do well to buy even bigger than a condo and maximize your leverage. But you would have to analyze your total cash flow and return on investment versus your current return on equity. But on top of just simple ROI and ROE, you need to calculate your net worth returns from writing off interest expense, principal paydown on two properties, appreciation on two properties, etc.

Very desirable area. Near trains and the highway into the city. If the price is right, no hesitations in my opinion. 

As a realtor who lists a lot of properties, I inevitably have a fair amount that attract offers from Clickinvest.

They are completely legitimate but none of my sellers have ever accepted an offer from them. The offers vary but typically don’t eclipse those of other buyers but can be close.

The main issue as to why we’ve never accepted an offer from them is that my sellers ALWAYS prefer an equivalent offer from someone who has seen the property, whereas clickinvest is all sight unseen. It’s a shotgun method so it may work sometimes but it’s worth keeping in mind.