All Forum Posts by: Sarita Scherpereel

@Tomas Saenz is 200k your “all in” budget- including the rehab work?

@Anthony Lopez I agree with @ john warren. If you focus on a B and C areas you will be avoiding those risks. I'm sure your agent has a reason to make sure your covered for the costs of that could entail. My though would be to focus on the areas that won't have those risks. I would put my money into the property versus the turnover. Chicago gets a bad rap for being too tenant friendly. What people fail to understand is that Chicago is made up of neighborhoods- within neighborhoods-within neighborhoods. Although the laws are obviously covered throughout. You'll get better ARV potential when you focus on B/C areas and the evictions are lower. Which right now with Covid evictions are impossible with the cares act. 

I would like to add that investing in the state in which you live in is also the best way to learn the market and understand these properties. Out of state investing requires a lot more faith and good relationships along the way. 

Best of luck to you!

@Antwan Davis

I would say as an agent it’s probably a good idea to keep growing your business. Growing your business will help you continue to save to buy an investment property. I agree with what’s being said on the thread so far. $5000 is about what I recommend for buyers to have as reserves emergency funds. Keep hustling. You’ll get there. Until then save your money for when the opportunity comes.

I second what @John Warren said about Vault Lock. They are seem to last longer in the Chicago elements and the keys don't get as rusty inside. 

I think attending local meet ups (virtually- now with C-19) is a great way to gain local market knowledge from seasoned professionals. Once we can network again, the meet ups are a great way to hear "war stories" from investors who have a lot of experience. Best of luck! 

@Nick Love I’m naturally a night owl. But I often get up early too. I really work around my clients schedules. I’m lucky to have clients in all the US time zones and around the world. If I have a client that needs a response/call before their office hours I do it. I usually set an alarm for at least 7am to check in with my early birds.

Tonight I had a client call me at 10:15pm to ask about a property we are seeing in three days. I love it. We ended up chatting for a bit about non-real estate related topics. The relationships are more important to me than keeping a sleep schedule. But I’ve always need a bad sleeper and never had issues getting up early. So I’m not sure what my insights are worth. Ha!

Hi Talha, @Christine Lai mentioned a few good reasons as to why. I want to add a Chicago specific insights. Prices haven't gone down because there are still a lot of buyers looking for properties. During COVID, I've been in several multiple offer situations in all inventory- multi units, condos and single family homes. Inventory is low but buyers are still out there THIRSTY! Seller's are willing to ride out the storm, because most multi units are making them money. If they don't HAVE to sell, they won't. We might see more properties default but buyers are ready. Bigger Pockets is the best example of buyers ready to get out there. It see several posts a week similar to this one about people wondering when the prices will drop or the Fall drop the economist are predicting. Set up a BP notification for House Hack and you'll see. There's a lot of buyers out there ready for inventory.

"Online experts" aren't out there seeing inventory and working in these markets. Talk to your realtor, experienced neighborhood investors where you're looking to buy and keep looking at the BP forums.  Also, make your own opportunities. If you don't see the pricing you want start writing offers for what you think the market price should be. Work with your realtor on creating situations that can be favorable by targeting properties that have been on the market more than 90 days. And that's all my magic I'm willing to share of the internet. Best of luck to you! 

Hi Jimmy! I'm a bit bias because this is my market. But I grew up in Houston and I've lived in a few other states before settling here a 12 years ago. Chicago can be a competitive market especially during the spring market. Obviously, this year COVID change a lot of the "normal" conditions. Most investors like Chicago because of appreciation, high airbnb potential, easy airbnb city regulations and the ARV strategies for cashing out can be lucrative. Negatives are taxes are high and increase for a "windy" city, tenant laws strongly favor tenants and most buildings are over 100 years old. A seasoned realtor can guild you through those issues though. The biggest benefit for house hacking is you will work with the negatives better. You get a tax credit, you'll know your building and your tenants.

Chicago is a city of neighborhoods, so to speak in more specific terms it's helpful to know if you've narrowed down neighborhoods. If not, this is my general thoughts. Best of luck to you in your search! 

There's been a lot of great advice on this thread so far. I just want to add that bridge loans (In Chicago) are also very low....almost non-existent. Credit scores are a pillar for many lenders. The only thing I can think of would be a professional loan-for high income professionals like doctors or people with $250k of stock/410k assets. You've made so much progress and in some tricky times. It might take you a little longer to get the last R. However it could be for your advantage. Best of luck to you! 

@Tristen Palori. In Chicago, I’ve worked with several commercial agents to buy house hacks. Even though, they could have done the contracts themselves. There’s so much more to learn than just contracts. Properties here are usually 100 years old which require a lot of analyzing for capital expenditures and improvement strategies. Also, tenant laws are complicated here as well. Commercial brokers don’t have the experience as I do in those areas. I’m from Texas, I know these issues with properties are not comparable. You should be ok but I would make friends with a residential agent and see if you can ask them any questions that might come up. Best of luck!