All Forum Posts by: Pranshu Adavadkar

@Pranshu Adavadkar

OK - what you described is going to be really hard to find.  Everyone would love a low-risk, high profit flip.  

Most agents don't specialize in off-market deals.  You either have to buy from a wholesaler, or source your own.

@Pranshu Adavadkar one of the dangers of listening to old podcasts is that they have very, very outdated information. I am pretty sure Brandon Turner no longer owns most/any of the properties he purchased as he has moved into bigger and better deals. I do know that pretty much no deal I have ever purchased has cash flowed much/if at all from day one unless I did some work. The only outlier to this might have been my first one in 2015, but since then I have always had to do some work to get thing stabilized for at least the first 4 to 6 months. 

@Pranshu Adavadkar

OK, you have a lot of questions in this one post.

You need to analyze properties using the actual numbers for everything - you can use the rough rules to screen, but then you need to use actual numbers for all the items once you've narrowed down.

And you are right that most plain vanilla properties listed on the MLS will not cash flow right now.  It used to be easier 10 years ago.

But no, bank owned and foreclosed properties are not the only way to get something to cash flow. Lots and lots of other ways. Buy off market, BRRRR, house hack, change the use of the property, add bedrooms or features, etc.

If you can house hack, house hack.

Go to local REIA meetings and talk to everyone.

Start walking properties with an agent.

Lots to do.

Hey @Pranshu Adavadkar - It's funny how life throws us into things and we don't even realize the benefit of it til after, I know that holds true for me on a regular basis.

1.  I would say vetting your own tenants is a better situation if you have a good process setup or can lean on someone for help. 

2.  I like Pilsen, little village, and Bridgeport.  North Lawndale & Garfield park may be a little rougher.

3.  Always hidden costs.  Make sure you have an investor-friendly attorney on your team.

4.  Check out Belmont Craigton or Hermosa

5.  Google good tenant screening techniques and you'll find a bunch of answers.  My favorite tip is doing a video call with them at their current place.

Feel free to reach out if I can help in any way, I am here on the North side of Chicago near logan square.

@Pranshu Adavadkar

1. Is it better to have current tenants or no? There are tradeoffs with inheriting tenants vs having a vacant building when you purchase. Personally I like vacant buildings so I can rent to the tenants I have screened. When you inherit tenants you are also inheriting their habits/behavior, good or bad. The flip side is that when you inherit tenants you start collecting rent day one (hopefully).

2. Any areas preferred and any areas to be careful about? Like @Jake Fugman said, it depends on your tolerance for risk. The majority of investors have talked to don't want to buy in D class areas, which are generally found on the south and west side.

3. Any hidden costs or legal things to be aware of? Depends on how much you know already but I think it's important to always do a sewer scope inspection when you're buying a property. They're inexpensive and worth doing to mitigate a potentially large downside. Also be sure to know before you go under contract to buy a property you get confirmation from the listing agent how many legal units there are. You should also get the zoning cert before closing to confirm this.

4. any good neighborhoods in north or northwest Chicagoland? 5. Any quick and dirty techniques during preliminary screening? I think Niche.com is a useful tool for getting an overview of a neighborhood/area. It even comes with letter grade rankings across multiple topics (crime, real estate values, schools, etc) - https://www.niche.com/places-t...

Sell, regardless of how you manipulate the numbers this is a very poor choice as a income investment property. There is no income. Put as much polish on that tu*d as you wish and it will still never shine.

If you really want to gamble your risks would be lower at the race track. If you want to invest then sell asap.