All Forum Posts by: Sam Tomar

Quote from @Michael K.:

@Sam Tomar does the property have some sort or defect that would make it difficult to get conventional financing? Or are you already maxed out on conventional loans? I think right now might be a good time to keep some cash reserves. Stock valuations are looking better and may fall even further, and it doesn’t appear that real estate valuations will be making any large downwards moves in the foreseeable future.

@Michael K. Conventional financing option is also open. I agree that it's time to have some cash in pocket. There will be some good opportunities in next 1-6 months in California also as market has started to slow down here. Do you think Chicago metro RE market is also showing signs of slow down?

Folks, I have been debating if I should spend $450 on inspections? This is a condo on 3rd (top) floor. Other than kitchen appliances, there is no other appliances to inspect. No water heater, no heat furnace inside the unit to inspect. Water heater/furnace/Coin laundry are maintained by HOA.

Current tenants are living there for last 1 year, and kitchen appliances are in functional condition. They are not brand new but functional. Bathroom plumbing/toilets all are working fine.

Is there something that might become a bigger issue later on if not inspected and corrected now?

Quote from @Michael K.:

Quote from @Sam Tomar:

Hello all,

Since California RE is getting out of hand, I decided to do a small investment in Schaumburg/Hoffman Estate area. Can you please chime in if this is a reasonable investment in that particular part of Chicago suburb. My offer just got accepted, and deal expected to close by end of July.

Property type: Condo (3bd/2ba) 

Purchase Price: $145,000 (cash deal)

Rent: $1500/month

HOA+Taxes+Insurance etc : approx $750

School ratings are good.

Is this a good investment?

 Looks reasonable at first glance. What kind of financing are you bringing?

 

@Michael K. so per the offer, it's a cash offer w/ option for loan. I can close using the cash on hand, and then do a cashout refinance later. I'm also thinking of getting a HELOC on my primary home, and I might just end up using HELOC (@4.75%) to finance the deal.

Quote from @Paul De Luca:

Quote from @Sam Tomar:

Thankyou @John Warren @Paul De Luca !! Plan is do cash out refinancing in next 3-6months after taking the possession. Do you guys see any issue?

 Are you doing rehab to the unit?

@Paul De Luca no rehab is needed. Tenants are currently in place and are willing to stay.

Quote from @Mark Ainley:

@Sam Tomar both Schaumburg and Hoffman have rental license programs through that village so be sure to account for that. Also many HOAs have rental caps so be sure you know what that looks like. Feel free to DM me as we manage a unit now or in the past in almost every HOA between the two cities. Talk soon and know these are great areas.

Will reach out to you once I get closer to the closing date. I'm still waiting for HOA docs to check on rental restrictions and other details.

Thankyou @John Warren @Paul De Luca !! Plan is do cash out refinancing in next 3-6months after taking the possession. Do you guys see any issue?

Quote from @Travis Pirtle:

I know this doesn’t answer your question, but 1500 for a 3/2 in the Schaumburg area seems very low. I would think closer to 1750 minimum. 

I agree, but that's what current tenant is paying who signed the lease last year.

Thankyou @Ronaldo Marion @Eudith Vacio @Crystal Smith for your feedback.

I have been looking surrounding area around Schaumburg (since I have someone locally there) but I can't seem to find any good deals. Also, not all places with HOA allow rentals from get go. I'm not sure how much appreciation to expect as prices are all-time high now.

Monthly HOA is around $435, and I have a feeling if it goes any higher, my property value will probably drop....and that's the biggest concern.

Any insights into what to look into HOA docs that might be a red flag?

Hello all,

Since California RE is getting out of hand, I decided to do a small investment in Schaumburg/Hoffman Estate area. Can you please chime in if this is a reasonable investment in that particular part of Chicago suburb. My offer just got accepted, and deal expected to close by end of July.

Property type: Condo (3bd/2ba) 

Purchase Price: $145,000 (cash deal)

Rent: $1500/month

HOA+Taxes+Insurance etc : approx $750

School ratings are good.

Is this a good investment?