All Forum Posts by: Rick P.

Plan Execute Dominate

4.5 to 4.75% on SFHs & Small multi's, 7yr money, 25 yr amortization.

Feel free to reach out David. Would love to talk about the area with you. I currently have about 200 units spread around NW Indiana and have been actively investing there since late 2010.

Let me point you to 'Every Landlords Tax Deduction Guide' by Stephen Fishman. Currently in its 10th edition, this has absolutely everything you need.

I'd have to agree with the previous posts, especially Jennifer's. A 1br apartment any day over a 2br SFH. I have had success with 1br's. I am assuming this 4-plex is located in Columbus. As long as you are in a major metro area there seems to be huge demand for them. Students, recent college grads, divorced people looking to stay close to their children, elderly or widowed looking to downsize, etc, etc.

There are a million different ways this could play out in the future.  First, from a macro perspective we have had exactly one hike since June 2006.  The entire world is in a race to zero and beyond as evidenced by the amount of paper trading at negative yields around the globe.  I find it hard to believe we're going to see a massive uptick in inflation in the near future which would warrant raising rates.  We have tons of slack in the labor market (low labor force participation rate) and technology is having a deflationary impact on growth as it increasingly takes the place of low skilled labor and makes its way up the value chain.  

Now, as to how I am approaching this as an investor.  With current properties I have been able to get my lenders to move to 7 & 10 yr money on multifamily on 20 yr Amortizations.  This is something I have really aimed to do in lower tier, cash flow areas.  Previously everything I had was 5 & 25.  I think if I do get caught by an interest rate move this will help my portfolio withstand it.  

In closing, I think the Fed is behind the curve some and they know they have to raise a few more times because they need to have dry powder for the next downturn.  However, they don't want to raise when the rest of the world continues to cut.  It's really a tricky situation and I actually believe we are more likely to see interest rates go negative in the next 5 to 10 years than we are to see an appreciable rise (plus 3.5% fed funds rate).  

Good luck to all and interested to see how other investors are playing this.  

Welcome to the site. My business partner & I started buying sfh's in NW Indiana back in 2010. Initially we focused mainly on Hammond & Whiting. Since then we've expanded to mainly multi's in the aforementioned areas, plus Munster, Highland & Schererville. We are currently under contract on 3 multi's in Whiting. Would welcome the opportunity to speak with you or any other investors interested in the area. Good luck

My business partner and I have a portfolio of properties we own in NW Indiana, primarily in Hammond and Whiting, with some lesser exposure in Munster, Highland & Schererville. We are licensed and actively looking for deals. Currently under contract on 3 multi's in Whiting. Would welcome meeting some other investors in the area. Feel free to hit me up with a message and we can discuss.

I have properties in Chicago and surrounding suburbs as well as northwest Indiana. The property tax issues in Illinois are real. I would like to know a little more about what areas you are attempting to purchase in. For the time being Chicago proper has a decent looking property tax profile as compared to the suburbs. That spread will most likely narrow as Chicago has already passed a series of property tax hikes which will be phased in over next few yrs. Unfortunately there are many more to come. However, the suburbs are in just as dire a situation as city and will also need to raise revenue going forward. Now, as far as NW Indiana goes it really does depend on the area. We have a good number of homes in Whiting & Hammond. The effective property tax rate of our Hammond homes comes in around 2-2.5%. We had quite a few that were higher but we have been protesting dozens of them every year since 2012. Taxes in Whiting, on our properties at least, have been a little lower. I'm open to discussing this with you further if you ever want to reach out. Between SFH"s and Multi's we own a couple hundred units and are in Highland, Munster & Schererville, as well as aforementioned Whiting & Hammond. Good luck to you.

I guess it really depends on what you want to accomplish going forward Priscilla.  My point was that having some cash sitting there doesn't hurt.  You can always replace the cash flow by turning around and purchasing two or three similar properties cash with that $200,000.   You are in a good position no matter what you choose.  I could make a good case for sitting there as is, leveraging or selling portfolio off entirely.  Important thing is that whatever you eventually choose you are committed to that direction.  Good luck.