All Forum Posts by: Tony Angelos

@Sarah Miksa Spending 45k does not seem like an effective use of capital. And I see you're in LP, so is our team, and in 2023 1/1s were the highest appreciating property type in LP. So congratulations.

As for everything else, do you need to do something right now? House hacking can be great, but it's challenging to find something that works. With the new 5% down conventional loans, it definitely opens up more possibilities, it really comes down to what you're trying to accomplish. If your goal is cashflow, buying a highly leveraged property in the neighborhoods around Lincoln Park with 7+% interest rates is probably not realistic.

What is your objective with the next property?

@Nolan Mahoney I personally don't find anything wrong with it. My first rental was my first primary residence. It's a breeze, the cash on cash return, while low in absolute terms, is crazy high (3% down + seller credits). I only cashflow about $150/mo, but I was able to get into it for under like 6,000 all in. It's against conventional guidance or what you read on the forums, but I have no regrets. 

Just need to set expectations for what you're actually getting in return, a small condo is not going to be life changing wealth. But it will help you understand if you like this kind of investing and enjoy the underwriting and stuff.

Feel free to DM and I'd be happy to share some more opinions and experiences

@Faiz Kanash Rentometer is free for like 3 searches or something, so if it's just a one off, it would be an okay starting point, but cross checking it on zillow, apartments.com, and other rental sites to see the competition and activity is the best way in my opinion 

@Thomas Lin There are a number of options for looking at what's available, but you're going to struggle finding closed numbers. You should just connect with a commercial broker who specialized in this. I'm happy to connect you with one if needed.

Hi @Emily Lai You can search for agents right in the "build your team" button on the top. That being said, I'd be weary to burst into a market just because your brother anecdotally said rents are high. Technically there are areas here in chicago that rents are high relative to purchase price.

One recommendation, if you're looking to get into the OKC market would be to join some facebook groups for OKC specifically and see what people are posting and where investors are active so you can get a lay of the land and figure out where you're going to fit into it.

Good luck!

@Tyler D. If your plan involves buying a lot of the next decade, consider both. In investment management it's called a barbell. You can have cashflow properties AND properties you expect to appreciate.

None of us have crystal balls, and as an investor, the only way to get outsized returns is to make a bet that is more contrarian than generally accepted knowledge. So rather than waiting for the perfect property in one or the other, reframe it to where you INTEND to buy both because without a shadow of a doubt, one will do better than the other, we just don't know which one.

Then, once you make that decision, you can actually start towards your goal. Have a minimum required return for each area, then just start plugging away with the offers picking them up as you can. This is also the same concept as dollar cost averaging in the stock market. 

Good luck!

Hi @Travis Provin, you should reaach out to a few contractors to get an idea. It's not like they're pricing out painting walls by the square foot. The plumbing is the big thing. A contractor should be able to give you a good estimate. Get a few opinions too obviouly. Good luck!

Congratulations @Chaunna Henry, lots of people would have just given up. One problem I see with many people who want to house hack is that they forget they also have to live there. So yes, if you're open to moving, compile a list of places you're interested in, then go and stay there for a weekend to make sure you'd actually be able to live there.

-Make your hotlist
- narrow it down
- Find an agent in the area

But even with this, like if you identified Chicago as your top choice, there are 77 unique neighborhoods here. Maybe a quarter are viable for house hacking. I would like if you were able to spend more than a couple days in an area to really figure out what you like. Unless you had just immense trust in your agent to place you in an area you'll enjoy.

If at all possible, you should look close to your current location and rule it out first unless you want to move.

Hi @Fernando Juarez, glad to hear you like it here. IL gets a bad rap but is definitely a lot better than we're given credit. It's difficult to just give a blanket statement on which one is better. In my opinion, there are definitely plenty of 2-4 unit properties that are overpriced simply because there are SO MANY people who want to house hack. Sometimes, people put themselves in losing situations just for the sake of househacking.

It really comes down to the goals you and your fiance have. My team covers most of northern illinois, so I'd be happy to connect you with someone who can more appropriately share insights on your specific area. Good luck

Hi @Srikanth Patala you should connect with @Mark Ainley he may be the right person to help you