All Forum Posts by: Kumar Paj

Was not aware of this.

can you share some more details about this event?

thanks!

Welcome to Bigger Pockets community...

You will find this very useful....

Happy Investing!!!!

Not worth to set up LLC at this stage (assuming that this is your first property). You may want to consider it after you have sizable portfolio. As of now, good insurance policy + a strong umbrella policy should be enough.....

Welcome to BP...

As a new investor, you will find this extremely helpful

Good luck and Happy Investing!!!!!

I tend to agree with Mike and other folks, especially on his note on Cook county+property tax issue. 

Though there are lots of downs for Chicago market, there are some good opportunities too. I like DuPage county (all of my properties are in DuPage county) much better than Cook or Will county. I won't go negative for Chicago since there are cash flow properties out there. I just rehabbed and rented out two units in B+ class neighborhood for $1450 and $1400 respectively which gives me approx. $1400 p.m. NET Cash flow...not bad....

Property Tax is the most frustrating and strange phenomenon here in Chicago. I am paying $3K+ for one of my 1150 Sq.ft unit in Wheaton whereas the tax for a similar unit in Glendale Heights (less than 4 miles) is $750.  

so, yes Joel...you will for sure find some lucrative deals here....so good luck with that....

Thanks

Kumar

Hi Vu,

Welcome to Bigger Pockets community! This is a great place to connect with like-minded people and learn new stuff.

I would strongly encourage you to consider downloading and listening to the podcasts whenever you have a chance to. 

Feel free to contact me for any question.

Good luck and Happy Investing!!!

Kumar!!

Welcome to BP Community! I is a great place to learn about real estate and network with like minded people.

I am an investor+agent in Western/NW suburbs of Chicago. Are you focusing on any particular suburbs/areas on South Chicago? Always eager to learn more about South Chicago...

Good luck and Happy Investing! 

I tend to agree with James..

I am an Investor+Agent and I have been investing in Western suburbs for more than few years. We just completed two projects in Aurora with around $1400/- net cash flow per month.....so yes, there are some good opportunities out there.  I would recommend to focus on East side Aurora i.e. towards Naperville (near rout 59 and around Fox Valley). Most of these areas fall under Naperville school dist which makes this neighborhood more attractive for renters and new buyers.

feel free to pm me with any question or need any help. 

Good luck and happy investing... 

Thanks guys!

Robert: These two units falls in Aurora but right on the boarder i.e. with Naperville school district which adds lot more value to the property.  We are working on two more deals in this area...let's see how it goes... 

Just completed two transactions (almost simultaneously) in Chicago Western suburbs and getting ready for the next one......

Transaction 1: Duplex (one unit) 3BR, 1.5 BTH (1150 Sq.ft)

- Purchase price: $89K

- Rehab: $15K

- HOA: 0

- Property Tax: $1800 p/a

- Insurance: $700 p/a

- Rent: $1450/ p/m

- Mortgage: $366 p/m

- Net Positive Cash Flow: $700 (taking into account vacancy rate and maintenance)

- Cash on Cash: 24.9%

- Cap Rate: 14.6%

Transaction 2: Duplex (one unit) 3BR, 1.5 BTH (1150 Sq.ft) 

- Purchase price: $95K

- Rehab: $5K

- HOA: 0

- Property Tax: $1800 p/a

- Insurance: $700 p/a

- Rent: $1400/ p/m

- Mortgage: $390 p/m

- Net Positive Cash Flow: $650 (taking into account vacancy rate and maintenance)

- Cash on Cash: 29%

- Cap Rate: 14%

Though I've done lots of foreclosures, the first transaction above was really challenging. Of course it was a foreclosed property but was vacant for more than four years i.e. gas line was disconnected from outside, plumbing issues, water damage and so on (many surprises). It took much more than I was expecting but the huge benefit was- I found the 2nd one right across the street at super cheap. It was a FSBO and I got there on the very first day...found a motivated seller and struck the deal withing 24 hours....not bad to have two units on the same street...easy to manage.

Would appreciate thoughts and feedback from experienced investors.....