All Forum Posts by: Nicolas Bajner

@Man Le

Tell me about it. The market over here is crazy! I think I got lucky with the property that I found and, much like anyone on here, want to keep up the progress and exponential growth. Thats why I want to move to a 4-unit rental property. I wouldnt mind investing in a 5 or 6 unit property either. But the problem remains that there are 0 currently! I dont think I can sit around and wait for one to pop up while other markets are opening up. That's mainly why Im considering investing out of state. I need to keep up with my goals for my growth and Chicago is a bit too funky at the moment. Its either too expensive or the property is gone before it ever hit the MLS. I have my fingers crossed that you can find something too!

@Kristen L Garner

I would love to talk about where youre investing! I never even thought about Indiana. Ive been too busy thinking about the states that the big names are going to that I never seriously considered the other 45. Minus Illinois... either way I would love to hear about how you got started and start delving into Indiana's market! I love studying new markets and learning about which areas to avoid and which areas are hot. 

@Paul De Luca

Yes, I have. Either they are out of budget or the taxes are insane (at least from what Ive seen). I have been searching in Elgin, Aurora, and Berwyn but havent checked out Little Village, Cicero or Chicago Heights! Ill take a peek! I actually made an offer on a 4-unit in Elgin and was outbid. I was also under the impression Cicero may be difficult to rent out too/cash flow. If I'm mistaken I would love to take another look.

Thank you for the advice!

Hello Bigger Pockets!

I currently reside near Chicago Illinois. The market is currently not very forgiving for the type of properties I'm looking for. I'm looking for something similar to a 4 unit small multi-family rental property under $400,000 outside of war-zones where the property taxes aren't crippling the cash flow. Here in Chicago, if I look anywhere in Cook County, with the same parameters above, I might as well be looking for an invisible needle in a haystack the size of... Chicago. Surrounding counties have potential but still come up dry/properties get snagged before I can even read the "More info" tab.

My question is if I am looking into long distance real estate, where should I start to look? I understand some great markets are in Arizona, Florida, Texas, Oklahoma etc... but I don't know the areas well enough to decide "That's where I need to focus my attention and study". I'm currently reading some books that are helpful as to HOW to get everything started and even automated with time, but that still begs the question of WHERE to invest.

Where are you all having luck? I would prefer to start investing in markets that favor cash flow > appreciation at the moment. I would love to hear anyone's opinion on where and how you got started! Any and all information is appreciated!

Thank you for your time!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $207,000
Cash invested: $25,000

House hacked duplex with a 2 bedroom and a 1 bedroom unit which needed some renovation and repair. Refinancing in June to increase cash flow, and will move out in December to rent out current unit I reside in. Monthly cash flow $200 now, projected after refinance and move-out to be ~$1,100 a month at 100% efficiency.

What made you interested in investing in this type of deal?

It was a cheaper uglier property near me. It was exactly what I was looking for! An ugly home that could be easily purchased from an owner looking to sell quickly.

How did you find this deal and how did you negotiate it?

My agent and I saw this and were initially quite weary on the property. Looking through the property in person we saw many opportunities to make repairs and refurbishments that would allow for higher rent and higher cash flow.

How did you finance this deal?

Saved up enough for a 15% down with a good amount of buffer. Contingency is to stay in this residence for 1 year due to the contract. Loan also came with a but of credit that took care of closing costs, which also allowed for more freedom with the repairs.

How did you add value to the deal?

New vinyl flooring, updated appliances, new cabinets, new paint, updated closets in the bedrooms, updated vanity in the bathroom (with a brand spanking new toilet seat ;D), and updated in unit laundry.

What was the outcome?

Outcome is a happy tenant! Renting out for $1,500 a month which takes care of total monthly payments plus $200 a month which is being used to refurbish the current unit I reside in.

Lessons learned? Challenges?

Learned a lot about property management and delegation of tasks and jobs during the refurbishment. Everything was done efficiently and overall under budget. Very grateful for the help I received, and for the things I learned getting my hands dirty.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a lender named James Pericht at Fairway here in the Chicagoland area. He did a great job of making everything smooth. Hooked me up with some fine people for utilities and insurance and whatnot. Never a single complaint about anybody associated. James was a very intelligent individual who had answers to every question, and solutions to every issue. Amazingly easy to work with. 11/10

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $207,000
Cash invested: $25,000

House hacked duplex with a 2 bedroom and a 1 bedroom unit which needed some renovation and repair. Refinancing in June to increase cash flow, and will move out in December to rent out current unit I reside in. Monthly cash flow $200 now, projected after refinance and move-out to be ~$1,100 a month at 100% efficiency.

What made you interested in investing in this type of deal?

It was a cheaper uglier property near me. It was exactly what I was looking for! An ugly home that could be easily purchased from an owner looking to sell quickly.

How did you find this deal and how did you negotiate it?

My agent and I saw this and were initially quite weary on the property. Looking through the property in person we saw many opportunities to make repairs and refurbishments that would allow for higher rent and higher cash flow.

How did you finance this deal?

Saved up enough for a 15% down with a good amount of buffer. Contingency is to stay in this residence for 1 year due to the contract. Loan also came with a but of credit that took care of closing costs, which also allowed for more freedom with the repairs.

How did you add value to the deal?

New vinyl flooring, updated appliances, new cabinets, new paint, updated closets in the bedrooms, updated vanity in the bathroom (with a brand spanking new toilet seat ;D), and updated in unit laundry.

What was the outcome?

Outcome is a happy tenant! Renting out for $1,500 a month which takes care of total monthly payments plus $200 a month which is being used to refurbish the current unit I reside in.

Lessons learned? Challenges?

Learned a lot about property management and delegation of tasks and jobs during the refurbishment. Everything was done efficiently and overall under budget. Very grateful for the help I received, and for the things I learned getting my hands dirty.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a lender named James Pericht at Fairway here in the Chicagoland area. He did a great job of making everything smooth. Hooked me up with some fine people for utilities and insurance and whatnot. Never a single complaint about anybody associated. James was a very intelligent individual who had answers to every question, and solutions to every issue. Amazingly easy to work with. 11/10

@Robert Williams

Hello! Thanks for the input. I have thought about partnering but haven't quite networked enough to know someone who I would want to do that with but hopefully I will soon! I've also looked in Joliet too. Saw some decent deals but my problem is I'm too hesitant and picky so I need to stand up and get my act together haha. I've also looked into out of state rentals/vacation rentals but again I need to network more and do some more research on where id want to go. I'm always looking for advice and hoping whoever helps me, I can help them just as much! So I guess I need to put some money down on a partnership, or get off my butt, man up, and get it going asap.

Thank you again!

@Jonathan Klemm

Thank you I appreciate it! Excited to be part of the bigger pockets forums!

You do have a really good point. I guess I have been picky trying to find a positive cash flow, denying the properties which I'd pay under $100 monthly just to see a green cash flow haha. I also heard that the beginning year or two won't reflect the future profits at all including equity and selling and whatnot, so I guess I should lower my standards a touch from the instant money making machines to an investment I can grow on my own and work at its highest efficiency. The whole point is to move out and get started so the sooner the better! Gotta learn the ropes sometime!

Thank you! I may take you up on that offer!

Hello!

My name is Nicolas and this is my first post on the forums!

I am looking into real estate investing in and around the Chicago area (preferably out of cook county to avoid their insane taxes). For my first rental I am seeking an affordable multi family home to house hack, create income, save that income, and use it to continue a career in real estate investing. I live in the suburbs of Chicago currently and would rather stay in the suburbs to keep my current job. Preferably 30 minutes away from Arlington Heights where I work (I work in a hospital that requires I live close enough so that if I need to come in during an emergency, I can arrive in less than 37 minutes). During my look at some properties, and working with my realtor to decide which properties are even worth looking at, I found myself running into the problem of seeing there is not much available at the moment that can cash flow decently, or even looks desirable to invest in due to issues with the properties that would run my wallet dry. Now, that could be due to me incorrectly inputting numbers into the real estate investing calculator but I always double check and make sure my numbers are correct. It could also be due to the fact that I plan on living in my first rental property, so maybe I am being too picky with the properties? Or maybe is it because of the current market that I am having these issues and I should wait to invest? I would rather invest sooner than later and begin creating passive income, but I am having a hard time finding a good property within my budget that can cash flow effectively. Is there anyone else having these issues? Is there something personally I can do, or is this just the waiting game and keeping an eye open on every property I can trying to pounce on "the one"

Thank you!