All Forum Posts by: Patrick Roob

Hey there@Elijah Roberts!

Hey there @Charles W.!

Reach out to my loan officer @Zack Karp

He's located in the Schaumburg area, and I am certain that he could either help you out, or point you in the right direction.

Best of luck!

Hey there @John White!

Welcome to BP! I am in Round Lake Beach, IL which is only 25 minutes from the Wisconsin border.

Could you please let me know what types of properties you specialize in for inspection? Are you mainly SFH and small multi-family, or do you also have experience in inspecting (and providing reports for) larger multi unit properties/apartment complexes?

Thanks! 

Hey there,

Reach out to @Liz Lita

She is a long-time family friend who I trust. She helped me to find a couple rentals, my four unit house hack and a SFR.

Good luck!

Patrick

Hey there everyone!

How are you? I would first off like to thank you for reading and chiming in to my "generic" question!

My multi-faceted "personal" question for you is; "am I moving too fast, and at what pace had you grown at?" Additionally, do you have any suggestions for me in growing at the right pace to avoid biting off more than I can chew?

I have come to a point where I cannot stop thinking about real estate, and am officially 10X more interested in this career path than my corporate job (big shocker there)! That being said, here's a bit of history into my story, and I'm interested to hear about your progress, the pace you had grown at, and any suggestions or advice from fellow investors.

Ever since I was born, I had been surrounded by real estate. Not only was the first home I lived in as a child a house hack duplex my parents had purchased, but my grandfather had owned millions in rentals, including strip malls, mixed-use, apartment complexes, small multi and land. That being said, I have recognized from a young age the benefit of real estate investing....... When done right.

This past March (2016) I had purchased my first home, which happened to be a house-hack four unit row home. Now, 8 months later, I am currently under contract to purchase another primary residence property being a single family home. Although I have not yet closed on this SFH, however there's an agreed upon contract on both ends, I am already finding myself in "search mode" for a 12+ unit multifamily commercial property. Of course at this point I would be looking for an equity partner (most likely family) as I do not have 300k + to exhaust, but I am just looking for your thoughts on my circumstance. I have closed on 4 units, and put a 5th unit under contract in 8 months, and am immediately turning around to look for another 12+ units to close on within the next 10-12 months.Should I slow down?

Thank you BP!
Patrick

Joel, I absolutely love the fact that you state the above. Being new to the REI world and only have closed on one multi-family property thus far, I have suffered the confusion of jumping from "shiny object to shiny object" and not dialing down precisely what kind of investing I'm truly interested in being (MF, SFR, Rent to Own, Commercial). Do you have any suggestions on how to better come to this realization rather than "learning from experience" and trying multiple different avenues to see what interests me most?

Thanks much!
Patrick

Hey there @Joel Owens and @Masroor Ahmed!

I could not agree more with your issues with Illinois property taxes! I recently purchase my first multi-family property in Lake County this past March, and since then the taxes had increased to $14,700 which is absolutely absurd! 

With this cruel reality awakening, I have certainly adjusted my REI plan and have shifted focus to the Milwaukee market and southern Wisconsin along the border. With annual tax hikes of 15%+ year over year in the DuPage, Lake and Cook County markets, it is only a matter of time until expenses far surpass a point which market rents can be raised too.

Best of luck!
Patrick

Hey there @Carlos Rodrigues!

First off, don't let this "bump in the road" discourage you! Things happen for a reason, and there are plenty of deals out there. Just this past March I closed on a 4-unit house hack with an FHA loan similar to how you're looking to do! For more information on that house hack, how I did it, the numbers breakdown and how I was able to close on a 315k property with only $4200 out of my pocket after close, click on the link below. This link will take you to my discussion forum about the prop.

https://www.biggerpockets.com/forums/55/topics/357...

Additionally, please note that it took me over 1.5 years and walking through over 25 multi unit properties and offering on over 10 properties to come to this success. That being said, there are MANY moving parts to a house hack and many different factoring numbers which must be considered when looking at the home to purchase.

I have not read everyone's response, however, my first response would be to find a new loan officer... Secondly, in my personal opinion, if I were you I would leverage my ability to borrow money with low money down. That being said, I would not put down 20k on my first property, but I would lean more towards a 3.5% down FHA, 5% Conventional or even a 5% down Homestyle rehab loan..... Rather than putting down 20k, you can put down a fraction of that, and use the balance for another investment........ To each their own!

A few of the large factors to remember when qualifying for a loan are these;
- Job Income
- Purchase Price
- Property Taxes!
- Rental Income (your loan underwriter can only account for 75% of the actual rent coming in towards your qualification) That being said, if you buy a duplex and each unit rents for only 1000, then that means they take 750x1unit as funds to help qualify you for a loan. How were the rents on your multi unit you were looking at? 

I am not a professional in the REI world, however if there's anything I can help you with, or you would like someone to bounce ideas or suggestions off of....... I have been through this process and please feel free to reach out to me directly.

Best of luck! AND KEEP YOUR HEAD UP!

If I let my first denial discourage me, I would not have found this 4-unit which increase my annual income by 16k a year and allow me to live for free!3

Patrick