All Forum Posts by: KC Zhang

Chance, 

I suggest you start small with a duplex, then move on to 4 plex or even bigger complexes. 

As for your question about the 4 units, you need to check how they are deeded. If they are all on one title, then it's a 4 unit. I'm not a title expert, so please check with a local title officer. 

Good luck!

Casey

@Drew 

I hope I knew you when I started the foreclosure process. Probably would have saved me time and money.  Anyway, not too late to connect, as I recently moved to Elmhurst, IL, trying to build my network with local investors. 

Very good discussion, enjoy reading through this thread.  

How do to approach/respond to sellers using pro forma numbers to price their MFRs. 

For example, a deal came my way with the  following numbers: 

Occupancy rate: 84% 

NOI: $59k

Pro forma NOI (at 100% occupancy rate, and projected 20% rent increase): $220k

Asking pricing: $1.65M

Cap rate: 7% with pro forma NOI.

How can you tell the seller/agent that their number is off? Do you offer based on actual NOI with market cap rate?

Thanks 

Casey

My attorney is in Rockford, as always... the process is long and cost more than I thought. I had another case in IN, little better than IL. 

The law firm I used in IL has multiple offices in IL (Chicago, Rockford, etc) I will PM you with contact info. 

Both look like good cash flow properties. Both are listed on MLS. Not sure why they are not moving, maybe because of high crime rate in surrounding area?

Nice to know this program. Thanks for sharing this information. 

I started looking at Hammond and other cities/towns along the Illinois/Indiana border. Most of the houses I looked at online had solid cash flow numbers.  Will look further and do drive around to get a better understanding. 

@John Carr, I'm in the process of moving to Chicago area.... I looked a multi unit buildings in Cook and Dupage counties casually and haven't found any good deals yet. Best luck with you venture! 

@Mark Rustin, welcome to BP and good luck with your investment venture. 

@Mark Hafeli, good point about starting with 3 or 4 unit buildings. I looked at few multi units last year but didn't go through with the deals. The numbers looked ok until you put the property tax into the calculation. Thank god California has voter initiative that caps property tax increase.  

You might want to check LA FIBI-Commercial. The next meeting is at  April 7th. I'm sure if the organizer of that meet up is BP, but if you google FIBI-Commercial you should find pertinent information.