All Forum Posts by: Paul S.

I am in the bay area and am looking to buy some residential land. The reasons being - 

- There are no more values in homes in the bay area.

- I actually see one or two listings for land that seem like good value.

So my question is -- is investing in land any good? Does it appreciate with the market and will there be any buyers for it later on? Or will I be looking to sell it to developers?

@Jon and @Dave - Thanks for advise. You make a good point. I need to recalibrate my strategy. Think about it a little more.

@Joel -- I agree mine can be termed a speculative play but am trying to be thoughtful about it. And trying to target a place I am familiar with and can make decisions with comfort. But true, the only reason I am looking out of state is the place I am at is already gone quite a bit and I don't see a point in investing here.

@Lynn - Thanks for the advise. That is my biggest worry and that is why I am hesitant to jump in.

@Dave -- My objective is to only buy something good when the value is down. I am not planning on holding to it long term. I care about the rental income but I am purely investing to sell in 2-3 years time. So a good area (with good schools, walk score etc) is very important for me. I cannot get that in my area for the amount I am looking to invest.

Generally speaking should the property manager and the real estate agent be different entities?

@Brian, @Rich, @John, @Dave -- I am looking at out of state properties only because the properties at where I live are really expensive and at the same time old that I don't comfortable investing in. I am looking at Chicago because I lived there previously and know the area.

The agent I am working with is referred by a friend. He said he also manages properties but I am hesitant. I am being told its not advisable to buy out of state the first time, but in my situation I see it being the only option if I want to invest.

@Michele - I will be hiring a PM company not just staff.

@Michael Lauther and @Michael D -- I am looking at Chicago because I know it very well. I used to live near downtown and so know the city well. But still I agree, I need to do go visit the city and look at the neighborhood before making a decision.

@Chris - Thanks I will PM you. I really have no idea about Property managers and so will need any help I can get.

@Joel - I am looking at condos or townhomes in possibly a high rise (or a solid brick building). I am hoping it will be less maintanance that way as opposed to a SFR. Am I thinking straight? I know I will have to pay HOA but at least I can deduct it from my taxes.

Hi,

As a first time investor is it advisable not to pursue and out of state purchase? I am looking to buy in downtown chicago and I can only fly there if something happens. Can I rely on property managers to rent it out (to the correct party) and also help proactively in fixing things? I understand I lose a percentage of the rent if I hire a property manager but still. Are there any other issues I need to be aware of if I buyout of state?

- Paul

Thanks Bryan. I am in touch with a real estate agent (referred through a friend) who predominantly works in and around downtown. But I will contact some time if I need.

Thanks for the reply. I am not considering the appreciation aspect of the equation yet, just to understand if the 2% rule better in my scenario.

But for me to understand, what is the exit strategy for a Multi-family unit? Does it sell as easily as a SFR or a Condo? Does it appreciate as much as a SFR or a Condo? What should my expectations be?

- Paul.

Hi All,

I want to start investing in RE , I am looking to buy in Chicago am contemplating a Multi-Family unit. But I do not know what the exit strategy for that would be. Can I sell them as easily as a condo or a townhome? Is a regular townhome or a condo better to start off? Is there a reason why I should pick one over the other?
The reason I am thinking of condo/townhome as an alternative is I would buy them in a good neighborhood in downtown and so is easily rentable and probably easier to sell if I want to (based on location). For the multi-unit I have to go a little away from downtown but still in good neighborhoods (meaning easily rentable).

Also I read about the 2% rule on this site and also the 50% rule. Both of them make sense and I learned a lot in the one day I knew about this site. But in Chicago downtown area I cannot see the 2% rule working at all. The rents for a 2 br are probably 2500 and I pay 250K at least for one. So at best I get a 1%. Should I not even consider the area then?

Thanks for any and all feedback.
- Paul.