All Forum Posts by: Travis Russell

Haha, thanks @Atul Mohlajee ! I had initially started thinking I need to focus on West Garfield Park! There's so much inventory and you can get properties for a steal!! But then I realized how high the crime is on most of the streets.

I drove through several blocks and there are just endless boarded up units. Great to purchase, but difficult to rent or resell. I researched a few units through the county code violations website and found so many citations for poor conditions, dangerous construction issues, and unpermitted work that it just didn't make sense...yet.

For a new investor, I thought I found a gold mine!! For experienced investors, you know to focus on other areas for now. Thanks for the head up and tip on Austin!!

Thank you @Atul Mohlajee and @Josh Sexton ! Now I don't feel quite as crazy as yesterday. I read that rule and wondered if there was something I was missing or doing wrong. The rent just didn't follow the pattern for the West Loop neighborhood. I do agree that I'm sure in the B & C neighborhoods where you can get property at better prices then 1-2% is achievable. I'm still navigating the limitless potential that lies South of the Eisenhower, but I'm sure there are many areas where this rule would make sense.

In the West Loop, many properties don't even seem to reach 1% (which I'd consider a B, almost an A). Much of the core has been converted to it's highest and best use. One condo we own and are renting is getting .6%, where the market could probably justify a .65-.7% rate. They're dream tenants though so we haven't increased their rent yet for their 2nd year lease.

That makes sense @Adam Christopher Zaleski . I'd love to get $6,000 in rent for a condo that I own, but I think I'd give my tenants a heart attack!

I am VERY late to the game on this one, but does the 2% rule actually work in Chicago in A and B neighborhoods?? If I understand correctly, a $300k property should rent for $6,000/month? This sounds like high rent for even somewhere like NYC (where the purchase price would be $1.4M!!) What am I missing?

Thank you @Wendell De Guzman !

@Rejean Julien That's helpful. At least I know now that I'm looking for a crystal ball in the same haystack! Experience, especially hands on, is often the most powerful way to build a solid and knowledgeable foundation. I'm getting there! Trying to compile as many resources as possible in the process.

@John Weidner TOTALLY agree!!! Those add up, especially on the flips where many of those costs you have to account for, not only once, but twice!

@Wendell De Guzman , how do you "grade" your neighborhoods? Is there an industry standard that I can reference so others will know the type of neighborhood I'm asking questions about? I'd assume an F would be high crime, violent areas; D being somewhere in transition to a C neighborhood; C would be somewhere in the middle of redevelopment: B would be nearly redeveloped and very desireable; and A would be your Gold Coast city mansions?

Thanks @Rejean Julien ! I was actually looking at his book today!! I plan on buying it and reading it from cover to cover a few times. I was reading Brandon Turner's article this morning and he referenced the book and how beneficial it is!

And yes, there are definitely many material grades that can greatly change the costs. I guess what I was looking at were standard finishes; things that work for "modest" housing in developing urban neighborhoods that look nice but aren't custom or high-end at all. Home Depot quality are expected in these flips. Once I get to better properties, then we can talk about all of the good stuff!! :)