All Forum Posts by: Pat Lulewicz

@Nate Shields Moved to North Carolina in November, 2018 and currently in-process of closing on a 4BR/4BA student rental condo. Slowly trying to build an empire across state lines.

Investment Info:

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

Purchase price: $85,000
Cash invested: $21,250

Duplex located in Dekalb, IL. Second purchase made (1 month after purchasing first rental) with 100% occupancy. Wonderful long-term tenants and the property was in great shape given the age and amount of individuals residing in it.

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

A duplex at this cost was a wonderful cash flow opportunity. Already occupied so didn't have to advertise. Simply purchase, introduce myself to tenants, and collect rent.

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

MLS - minimum price negotiation.

How did you finance this deal?

Given that it was a single-family, there were no issues with getting conventional loan financing on it, through a mortgage originator.

How did you add value to the deal?

Self-managed to maximize cash flow. Replaced a heater prior to winter given its age. 1 tenant mowed the lawn for minimal rent reduction, so purchased him a new lawnmower to replace his old one.

What was the outcome?

Wonderful 20%+ returns annualized. We will have to replace windows on the first floor in the current year which will eat into profits, however annualized, the returns will still be strong, and all tenants are happy.

Lessons learned? Challenges?

With old homes, set aside money for CapEx and fit it before you need to. Once something starts giving you problems, take care of it before it rears its ugly head!

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

Bob Ashbrook - Inspector - incredibly thorough - western suburbs of Chicago and into North-Central IL

Investment Info:

Single-family residence buy & hold investment in Dekalb.

Purchase price: $72,500
Cash invested: $14,500

First rental property purchased. Rental property for NIU students.

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

Wonderful cash flow and a way to break into real estate investing without too large of a capital/equity investment.

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

MLS - We made an offer, and went back and forth until we agreed on the purchase price listed.

How did you finance this deal?

Condo complex was 100% NOO so I called around to a number of small, local Banks, and chose the one that was able to service it at the lowest rate.

How did you add value to the deal?

Immediately brought in tenants for the subsequent school year. Served as property management to maximize cash flows. Between tenants, did a lot of repairs, replacement of fridge, and maintenance that appeared to be ignored from prior owner.

What was the outcome?

Great cash flowing investment property. Current tenants are sticking around for next school year and we couldn't be happier.

Lessons learned? Challenges?

Being the first deal, just had to get over the initial fear of jumping in. Learned EVERYTHING along the way as this was before I started listening to podcasts and researching everything. Like getting tattoos, this got me hooked.

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

Property inspector - primarily western chicago suburbs - Bob Ashbrook - very thorough guy and extremely flexible.