All Forum Posts by: Chad M.

In the Western Chicago Suburbs (Westmont, Villa Park, Wheaton, Lombard, Addison, etc...) there are many apartment buildings located right next to a clustering of all the same exact built buildings, typically each with a different landlord/owner.  Often 3-6 units like this: https://www.redfin.com/IL/Villa-Park/731-N-Lincoln...

How do you think about these as an investment? 

Because the units/buildings/amenities are essentially commoditized by the surrounding buildings...  If you upgrade the exterior dramatically, the building may end up standing out and looking odd / not fitting in... If you remodel the interiors, you're still a bit captive to the rent of all the next-door neighboring units... Doesn't appear to be much of a value-add play here... Of course if you could acquire ALL of the neighboring buildings, you could have much greater control and rental price influence.

My guess is that the owners of these buildings are essentially just parking money and not pursuing a value-add strategy.

How do you all approach this sub-sector of Multifamily? 

Chris - could you send me the details?

@John Leavelle @Crystal Smith

Thanks John & Crystal - both great points.  I definitely don't want to force a deal, more patience sounds like its required at this point, or perhaps widening my area.

@Michael Totman - that sounds like a phenomenal deal.  Around me I see Multi-family's simply listed too high - leaving a standing offer does sound like a win-win approach.

Thanks @Michael Thornton, that makes sense.

@Chris T.

Yikes! No inspection contingency :)  I can see how that is an enticing offer.  Thanks for the advice

I just saw that there's a meetup at Emmets - I'll plan on attending this next one Aug 23 - hope to meet you there!

Thanks @Chris T. I'm right by Maple/Washington.  When you say fewer contingencies, would that include omitting an inspection contingency?  Curious what examples of standard contingencies that would be worth passing on.

@Brent Coombs Thanks Brent - yes, these should rent after rehab for around 2000-2300.

Hello community, I wanted to run a strategy by you for BRRRR in my area.

• I live in Downers Grove, and am seeking BRRRR SFH in that area as well as a few other similar Dupage County western Chicago suburbs.
• I'm at the point where I'm seeing many properties that would likely work for BRRRR, as long as the price comes down significantly from list (e.g., homes listed at ~$250/275k needing to be purchased for $200/225k).
• Now, these are on the MLS, so competing against retail buyers.

At the end of the day, say there are 20 properties that look good to me at the right price, I'm leaning towards doing the tour, estimating the cost to rehab, and then making quite low offers, in the hopes that at least one or two would get accepted at a price point that makes the deal work for me.

So my question is, does this strategy (in bold above) make sense? Are others approaching the market in this way?

Hello!

I've been lurking for a while on BP trying to learn as much as I can from this great community and thought I'd jump into the conversation with an issue I have been struggling to fully understand!

I'm considering purchasing 2-flats in Chicago's Southside where most of the rents are Section 8. Wanting to understand all potential risks, I see one such risk that the government lower the amount they are willing to cover for rent (or even end the program).

Given the knowledgeable forum members as BP, I'm curious to hear others' experience around the longevity of the Section 8 program--have you experienced any adverse government actions with regard to your Section 8 rentals?

Great thanks guys!