All Forum Posts by: Michael J Scanlon

@Farris Gosea

Comparing that to Elgin and Aurora, it still falls behind. Duplexes that were selling for $175k this time last year are going for $275k in Aurora. I’m glad you’re having success but in a straight comparison of the two, its pretty recognizable for me. I run a team of investor agents and we work both markets. Doesn’t mean NWI is bad, just a comparison.

@ERICA MORISCO

Haha I happened to get up and saw someone else asking for advice and then saw your name! Small world on bigger pockets 😋

@Farris Gosea

@ERICA MORISCO

As someone dual licensed in Illinois and Indiana and selling in both Aurora/Elgin and northwest Indiana, we do have to keep in mind that getting renters is far easier in Aurora/Elgin. Rental rates are also much higher in Aurora/Elgin than northwest Indiana. Yes, the taxes are lower but the appreciation has also been significantly higher in recent history in Aurora/Elgin than NWI.

Just a few things to keep in mind but both can have numbers that work.

There are definitely some great people in NWI and I would love to connect you with some of the people I know. Are you planning to do BRRRR-nb near the casino's? I know those and lake properties in NWI can be quite lucrative.

If you can find a BRRRR in this market, I highly recommend that route. I have seen some higher end house hacks work too (sold one last year where the clients were still out of pocket about $1400 a month (getting $2200 rent) on an 8 bed 4 bath two unit which duplexed down in unit 1 and up in unit 2. Basically felt like two houses on top of each other. That combined with renting your current condo could add another property but not add to your monthly liability, thus increasing your net worth every month.

Was your first investment a house hack or an outside investment? Whenever possible (based on life circumstance), I recommend house hacking and while house hacking, I've been able to BRRRR (or flip if I have to) because of not having to pay a mortgage and thus accruing the funds to do so. There are plenty of other ways to invest but if you find a good GC, and someone that can help you identify the right properties with upside, BRRRRing is tough to beat.

@Mike S.

Hi Mike S., great name and last name initial haha. You can apply for a new loan right now and the lender can tell you if it’s contingent upon the sale of your current house or not. If this is your primary residence and you’ve lived in it for at least 2 of the last 5 years, you would be exempt from the taxes. If it’s an investment property, it’s a different story.

@Michael Fortier I agree with Paul for sure. It also depends on how flexible you are in terms of areas. Some of the further out suburbs such as Aurora, Elgin, Joliet can provide very good cash on cash returns and you can get 3-4 units in your price range. 

@Tyler Jones

If you’re looking for multifamily but you don’t want to be too far from Huntley, Elgin is one of the best spots to find cash flowing multi’s

Yeah I’ve definitely found a number of 1%+ deals. Found a 1.44% in Joliet on a 3 unit that was beautiful on the inside and just ugly on the outside and 10-15 feet away from railroad tracks but the rental demand is so strong that the guy who bought it was able to raise rents after his first vacancy over $100/month. I’ve found a number of 1%+ in Aurora and Elgin as well and they’re not dumps-they’re still very much turnkey/nice. Some still have a degree of value add but as-is can be rented for near/at market rents. 

The main thing is just differentiating the 1%ers that appear nice but have issues from the ones that have had their major components (electric/plumbing/hvac/roof) updated more recently. I feel like so many of the properties I see that go for similar prices are vastly different in terms of their component parts and I want to forge long term relationships with my investors so I pretty much don’t even allow them to buy those types unless they know what they’re doing because I know I can find similar cash flow and similar price on other properties that have updates and these inexperienced agents will comp them out the same because they don’t know what they’re looking at. But it’s definitely a game of patience. I’ve got a lot of investors sitting on their hands and then when we see a good one, we run to it.