I assume it’s an opportunity put forth to invest in a fund that will then locate and acquire cashflowing apartments.

Any ideas on remedy?

We actually acquired this property for free doing a building swap with City Center Investment the largest developer of Allentown Real estate.

To be honest, this may be a tiny bit above what I thought the house was worth, but if overpaying by a couple thousand dollars to acquire a new rental was what it took, then I was fine with it, as he was going to be financing the deal for me.

Its also a great way to learn about creative strategies like subject to purchases which will allow you to acquire rentals without getting a loan from the bank.

I'm new to the Chicago market and recently acquired my first investment property here. 

While the numbers aren’t as high long term and cash flow isn’t as high, they can recoup capital quickly to acquire more properties than after you have a larger cash basis you can go for cash flow and lower mortgages.

I thought I could apply for a HELOC for each of my buildings that I currently own, and focus on buying a building where I can turn around and refinance the property at 80%LTV to pay off the HELOC, given that I would be able to acquire the property for less than it is worth.Has anyone out there had any success with this strategy?

In either case and if you will use debt to acquire the real estate, it must be non-recourse financing.

I then acquired one more property and have 3 more to close in the next few months.