All Forum Posts by: Tom O.

My first building was a four unit in a rough Hispanic neighborhood in Chicago and I had to get the Latin Kings out of the building. I think that story alone would make a good episode but, of course, I have other stories to share. But I'm small potatoes: 25 doors in four buildings. But I only just started before the Pandemic.

2 Votes

Can someone share the CAR 2024 lease please?

0 Votes

Naperville, Illinois

It gets posted every year. I would like 2024 if anyone has it. Thanks.

0 Votes

Chicago, Illinois

Little Village. Thanks for all the help everyone.

0 Votes

Chicago, Illinois

yes please. message me their number and name. I was going to reach out to state farm. thanks.

0 Votes

Chicago, Illinois

Is anyone getting good quotes on renewals? Especially in Chicago?

Can anyone recommend what insurance companies they are using and what kind of prices they are seeing for four unit buildings in Chicago? I just got dropped for no reason, no prior claims, no nothing. So I'm in the market for a new broker/agent and a new insurance company for at least one building and possibly more.

1 Vote

Chicago, Illinois

I'm about to save you $14,970. Go take $30 and buy David Lindahl's brilliant book Multi-Unit Millions. There. Now you have a coach. If you have any questions, you can hit me up anytime. GRATIS. I am not rude but I do get a little cranky sometimes. But would you put up with a cranky coach who is free?

I'm not the greatest expert here. I'm sure there's others who are better. I'm at 4 buildings, 25 doors.

3 Votes

Los Angeles County, California

Quote from @David P.:

Quote from @Sam Yin:

@Bruce Woodruff

Good morning Bruce. Lots of great points and opinions already. But I'll chime in... from a SoCal perspective...

I think the market is still hot! It's predominately a sellers market still. Although I mainly concentrate on small multifamily, I can tell you that it is HOT!!! It flies off the shelf if it gets listed at any reasonable price. However, most times it never gets listed because the demand is so hot that the agents get it sold with only a few calls.

The last 5 out of 7 deals I closed were all off market. And I had to jump on it because I knew if people got wind, I would lose them. They were all small multifamily, 6 to 20 unit buildings.

My most recent deal, to be closed next week, is also off market. It has a blended COC of 7.5, CAP of about 7.5, and GRM of about 8. Total price was originally about 2M, but I negotiated to 1.85M with a promise of no trades. Its 14 homes and one vacant lot, spans 1.5 blocks, and unit mix from studios to 4 bedrooms.

I am always looking and negotiating and I can tell you that the market here is so competitive that you better have funding at a moments notice. There is no sign os slowing down, only limited inventory. I was negotiating a 32 unit and was almost there when the word got out. Suddenly all kinds of investors jumped it to snatch it up.

I feel that the market will vary from region to region. However, the major markets might have seen their bottom, or close to bottom... with the stagnant prices. Now, there may be a good possibility that it will begin another in up in 2024. I do not have any concrete evidence, just a gutt feeling based on experience.

Sam, I'm in Southern California too and invest mostly small multi family 1-4 units. Recently try to bid a triplex off MLS that was priced about 100k under value. I made an offer with the listing agent but still got beat by 2 cash offers at 1.2 mil. Curious though...how are you cash flowing with these high interest rates? I'm currently working a deal on a offmarket duplex in long beach but the numbers look terrible..almost negative 4k/month cash flow after all expenses with the rate and low rents. Both factors can be corrected over time but itll be a painful slow process. The rate portion we can't control. The deal itself is awesome at 360/sqft where the area goes for 450-500/sqft so that's the main reason I still want to pursue.

Folks:

They are not cashflowing at these rates. These investors are sitting on cash and need to park it in something. So they don't care about cash flow because they don't have mortgages.

0 Votes

Phoenix, Arizona

All Forum Posts by: Tom O.

Tom O. has started 10 posts and replied 208 times.

Post: Small town but large building

Post: Small town but large building

Post: Help us find BiggerPockets Real Estate podcast guests!

Post: What You Need To Know to Lease In 2024 in Chicagoland

Post: Chicago Association of Realtors 2023 Lease

Post: HELP: Just got renewal rejected on a 4-unit building

Post: HELP: Just got renewal rejected on a 4-unit building

Post: HELP: Just got renewal rejected on a 4-unit building

Post: I dont need a Rude coach

Post: Anyone have an idea where the market is headed?