All Forum Posts by: Brian Schroeder

(sorry pressed the wrong button) Emergencies such as me losing my job of 21 years,  back in November.  Which is true I did lose my job in November.  When I lost my job for a month ( I am working a new job now) I have the cash flow from both my rental properties to fall back on.  Luckily thank god I didn't need that income But is was there if I needed it.  

To answer you question,  I have my primary resident paid off,  and I have a Heloc on my primary residents and I use it for the down payment on my second rental property.  I am using the cash flow from both properties to pay the Heloc and mortgage payments. with the rest of the cash flow going into savings for my next rental.  If I come across another deal I will use the Heloc again.  

Just like you, I have never used the cash flow for personal reasons.  I have reinvested it back into the company for future down payments.  After I reach about $50.000 .00 for down payments I might pull out some cash flow to spend, But only once I hit a few goals. It is taking a long time to start but some day I may have enough cash flow to enjoy it. 

Hello this is Brian Schroeder.  I live in Springfield IL.  Like you I saved you for my first Property and cash flowed my repairs.  It is a 2/1 purchased for 28K and repairs were about 24K.  I receive $700.00 a month.  This cash flow is free of any mortgage payments so it cash flows well.  Talking to other investors they all tell me the refi and get my cash back.  As far as how you and your wife should handle this is totally up to you. I explain to the other investors, that I personally like to have the excessive cash flow on this first property just in case of income emergencies. 

I live here is Springfield Illinois and I have a couple of properties.  Gary you have on your profile that you wholesale.  Do you have any properties available?  Brian

I would be Interested.  Please keep me informed.  Thanks

"Unless Brian has some insider info or perspective on what he thinks is going to happen on South grand between 1st and 11th lol."  

Not sure what Justin is referring to here.  Other wise I would offer what ever insight I would have.  

Rochester and Chatham are upper class properties and you will pay a lot more for the purchase price as well as higher property tax, to pay for their school districts, that come out of the property tax. 

On top of that in Chatham has some water issues as well. 20-25 years ago, they went to their own water system.That jacked up their water rates and after a while their water was coming out of the taps all brown.They tried to fix it, which jacked up the rates again. About ten years ago Chatham gave up and came back to Springfield’s water system. The water in Chatham still isn't right. What a mess.

But with all that said Chatham and Rochester is in high demand.People pay the big bucks to live in both villages. If you were planning to move here with kids, you might opt to pay higher fees for their schools, which is a plus. Like I said before these villages are in high demand, so if you can afford the investment property and all the expenses, they can and do rent for 5-10% more than in Springfield.

I for one chose to stay away from there.

Well I live in Springfield Illinois.I must agree that the property taxes are high.I heard that there is only one state that is higher property taxes.I’m not one on statistic’s so I can tell you if that is true for sure.The taxes are so high I can’t see them doubling. I can see the taxes going up with all are corrupt politicians. I don’t know about ST Louis and their property taxes.My question is why don’t you invest in Quincy?I have a friend with property in Quincy that that she rents out.

The irony is, that your thinking about investing here Springfield IL and I have thought about investing in or around the Quincy area.I mainly would like to get something like a getaway cabin, more so that an actual rental.I am not so comfortable with the Idea of a long-distance rental.Have a good day Brian

Hello all

1300 North 9th street: I wouldn't give $5000 for this property it is about to fall apart.

1800 So 8th street: I think this neighborhood is a c-d I would have to go by to tell for sure. I think it is closer to a C but if you go about 3-4 block east you really get into the D part.

1100 North 6th street: This one I have wondered about for several years. Probable 3-4- years ago there was some major work being done at least on the outside. Never been in it. Unless I am mistaken it has been on the market ever since. Done know if they are asking too much or what. I don't know if I am going to get in trouble from the forum police, because when I go into detail they usually come out to me and say this isn't where you put this and we are taking it down. I hope it helps. Disclaimer, this is only my opinion and I’m not a lawyer or ER agent. Brian

I was born and raised here in Springfield IL.  All though I have a rental 1 block off of South grand, it was a pretty good location when I bought is in 2014.  The neighborhood It has went down in quality in the last year or two.  The problem with Springfield  is that is hard to find 1.25% deals much less the 2%.  

Matt is Correct,  the thing we do have going for us is that we don't have the major swing in are market.  We don't get the 20% down swing,  on the other hand we don't get the swing up either. 

Matt is also correct with the duplexes and tri-plexes.  If you can get them to rent at one percent or better that are usually turn of the century not in very good shape and have whole building boilers,  and a lot of maintenance issues.  There are some that are in good shape but they cost $150000 and you might get $1300. to 1400 a month.   Not the 1%er.

Plus we have high property taxes to pay for our corrupt illinois government.  

I will follow both of you.  If either of you have any particular locations questions, I would be glad to answer them.  I know that I would only be one opinion and you might want more.  If your interested in a property I can do the leg work for you.  Take Pic's or what ever you need I would be glad to Help.  It's all about networking correct?  Have a good day Brian

Welcome to the site.  I am from Springfield Illinois as well.  Good luck! Brian