All Forum Posts by: Scot Howat
Scot Howat has started 15 posts and replied 416 times.
Post: First rental turned out to be negative cash flowed.

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
Most people dump a few hundred dollars a month into a savings account without thinking twice. If you're losing a few hundred dollars a month I don't think that's a big deal. Think of that property as a savings account. Except that the mortgage balance is getting paid down ($), you get great tax write offs ($$), and if you bought a decent property then the rent will increase ($$$) and the value will go up over time ($$$$).
If it was me, I'd keep it and move on to the next deal. You can always reposition it later (refinance, re-rent etc....).
I bought a deal that was a negative cash flow from day 1 because of my financing (13% interest rate), and I knew it was under valued but that the market hadn't caught up to it yet. I purchased it for 90k and based on the current available comps the appraiser also said it was worth 90k. But I knew it was worth at least 120k, but there were no comps to support it. So I bought it anyways and lost about $300/m. I have a great tenant pool in that area FYI (very important). 15 months later it appraised for 125k and I refinanced into a small positive cashflow but a huge equity position.
Not all negative cash flow deals are bad.
Post: Analyzing Rental Investment Property

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
You've neglected the most crucial information. Tell us about the tenant pool in the area, and that are attracted to your product.
Post: hi everyone! newbie from CHICAGO looking to network

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
Welcome, I'm seasoned (10+ deals). What part of the area are you looking for deals in
Post: New investor looking for help

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
I'm in Buffalo Grove. Feel free to reach to out me
Post: New Member Introduction

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
I'm up in the NW burbs (border of Cook and Lake County). Hit me up if you're looking to move to this area, I can help out.
Post: Condo mortgage for rental <75k

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
Hey everyone, the small portfolio lender I've been using for my loans just stopped lending altogether.
Does anyone know a lender who can do condos (investments) 30 year loans with a loan amount under $75k? I have some in my personal name, and some in my S Corp.
I'm not looking for anyone who sells to the secondary market (FNMA, Freddie etc...).
Located in IL
Post: Real Estate Investing in Skokie Illinois

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
Not quite, I'm in NW suburban Cook county and DuPage county. no wholesaling though.
Post: Newbie from Los Angeles, CA

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
Welcome! There's good rental deals everywhere, you just have to know how to find them. Chicago has some tough landlord/tenant laws if you're within the city limits. Make sure you're familiar with that before you buy.
Post: Impact of COVID on Chicagoland Real Estate

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
Cool data, thanks!
Post: My Cash...is Worthless.

- Investor
- Hoffman Estates, IL
- Posts 434
- Votes 185
You should try lending that money, stick it into a IRA and lend it out. Or pool it with other people that have the ability to secure a mortgage