All Forum Posts by: Michael K.

ima couple years older than  you and  about to buy a 3-4flat, just waiting for a deal.

I looked at the FHA but that to me is a joke. PMI and self efficacy is all to much bs and who knows what else. Do keep in mind the limit per county. Average is around 800k for a 4 flat , so your capped. Plus your limited to the properties FHA can finance.

Mom and Dad helping with down payment or you have money saved up? 

2 years of good income on your taxes? If so then your good, and dont leave that job.

Hello everyone.

I am trying to buy a 2-4 unit and to live in one of the units and to count the other units rent are income. 

One lender told me he can account for 75% of the rent as my future income, but I have to put down 30% on a conventional.

I read somewhere on a FHA website that, FHA can finance up to 96.5% = (3.5% down). And FHA can use 90% of the rent as future income. If that's the case I can get well within the 41% DTI ratio.

P.S

I don't have any previous rent income to show on my taxes so I have no history (which banks like to see)

Any info would be greatly appreciated!

Thanks

If its Cash, I would not put all your eggs into one basket, meaning real estate. Diversification is everything. Stocks, Bonds, Real Estate, Business Franchise, etc. No single smart investor just owns real estate or just stocks or a business.

How did you get your money in the first place? Why not keep doing what you did to get that?

Gotcha,

You saved me a bunch of time!

Thanks Jon! 

 Hey Cliff,

Tried to PM you but it wont let me. Had a quick question

Hi everybody,

 I want to buy mulit unit building like a 3,4 flat. On a conventional loan from the bank 20% down i can get approved for 150k , and in and around chicago that dont buy you anything buy a beat-down property.

Is there a different type of loan that I can get? I want to buy a 3 flat for about 300k, and it already has renters in all the units. How do I get beyond the 43% DTI rule of the conventional loans?

Thanks,

Michael

Hey Mike,

Thanks for the info too. You must use something better than Zillow.

Zillow tells me nothing about that certain property.

I think spending a little more and buying a turn-key might be safer for me. Maybe after the 1st or 2nd property I would learn enough to buy a beat-down property and fix it up and rent it out.

Greatly appreciated everyone!

One last question I forgot to ask. I see lots of 2 or 3 flats for sale on the south side for around 20k-40k and they have been sitting on the market for months. Why wouldn't a investor just buy them up, fix them and rent them out or sell them?

I just feel like this buying foreclosures fixing them up and renting them out is to good to be true. 

Check this out. Its a random multi family home on zillow i found. Multi Family South Side Chicago 

I know some investor(s) had to already look that this after 4 months on the market, and its cheap. Is it the neighborhood the investors don't like? Or is it a complete Tear Down? Or to much work? 

Thanks again :)

Hi Everybody.

I have lived in Chicago my whole life and know Chicago pretty well except for Chicago's South Side.

I am looking to buy a rental income property on the south side of Chicago.. In the past couple of years I ran into a few people who said they own rentals on the south side. I don't know where they have the properties, and I know the south side of Chicago can have "War Zones" and that's what I want to stay clear from.

I saw some websites that offer "Turn-Key" rental properties but it sounds fishy for someone to sell a Turn-Key rental property.. To me that's like selling a money tree.

I know the south side has high unemployment rate so renting to Section 8 might make more sense, but I don't know. There are plenty of 2 or 3 flats that are 20-50k range and need maybe 50k in work... So say I buy a 2 flat for 40k and put 30k into it, so that leaves me with 70k into the 2 flat. So I rent both units for around $1000 each that brings in $2000 gross a month on a 70k investment?

Any experience or Pros or Cons. Please let me know. 

Thank you!