Been Looking For A Year And Still Nothing
I live in Chicagoland and have been looking for a multiunit building in a decent area that will cash flow for over a year.
I have not found anything still. The ones I find are all SECT8 and I dont want to deal with the headache of the tenants that are sect8 as they seem real bad, and dont keep up the place at all.
If someone could guide me in what areas they have found mulit units that will cash flow with 20% down I would much appriciate it.
I am thinking for every 100K on price, I need at least 700$ in rent.
Any pointers etc on what to look for etc....
thanks all.
The bad part about section 8 is that most of the buildings are in run down areas, and only the section 8 buildings seem to look ok.
Anyone know of any chicagoland areas ?
maybe you are in a market where things are just too expensive to cash flow.
A year is a long time. How many buildings do you thing you have looked at in that time?
Well thanks for the great info. I have a great agent who gives me all the numbers pre tax, post tax and with the tax benefits etc included. That helps a lot and shows me that after the tax benefits, vacancy etc what the cash flow would be. Sometimes it comes up $100 a month or so..
I must have seen about 40 places already, ranging from SFH, Condos to Multi Units. I am basically looking at 3-6 unit building for about 400K.
I think Sec. 8 issues are somewhat based on area. Where I am, Sec. 8 tenants have a terrible reputation and neighbors come out in droves to kick them out of the neighborhood because of problems with tenants. This appears to be because the Sec. 8 coordinator does ABSOLUTELY nothing when complaints are filed. If the person running Sec. 8 in your area is good, it might not be a bad thing to try.
Sunny:
I am not sure what figures you are stating? How many units are you looking for and what amount can you spend up to?
There are deals out there and it may come to the point where you will have to go outside of your comfort zone. If you are looking for 12+ units, then you could always look in another area and hire a management company or have one of your tenants manage the property for you, so that you would not have to travel weekly or monthly.
Are you working with a commercial broker? If not, then it may be time to find one. They can help you find a property and it will not cost you anything as long as they know upfront the commission will come from the seller of the property.
Another point to make is if you know of a property in an area that you like, then jot down the address and then try to contact the owner to see if they are interested in selling. However, if you work alone you need to make sure you know how to make sure you will make a good investment. You need to do your due diligence and know the numbers before making any offers.
Good Luck!
Perhaps part of the problem of not finding something that will cash flow is the fact that you are using an agent to find the property. Most agents are good, some are even great at helping with the sales process. The problem is that they are not bargain hunters. The listing agent is trying to get the very most for their client.
Perhaps you should do a little searching on your own. Find an area where you would like to purchase something, drive around the area and send some postcards or letters to the actual owners of the properties to see if they are in a position that they "need" to sell. If I "want" to sell, I will wait for the highest price. If I "need" to sell, I am very flexible with price, terms, etc.
Also, how about going to your local Investor Group and finding some bird dogs and let them know that you are looking for some good deals. If they have something, they can pass it your way.
this is why you might want to reconsider a 5unit vs a 25unit...
read the post in the forum: "Need Adivice..Losing $$ Every Month"
scales of economy is your friend....
How do you find bird/dogs in the area which you are looking in ? I am in chicago.
Thanks
How do you find bird/dogs in the area which you are looking in ? I am in chicago.
Thanks
How do you find bird/dogs in the area which you are looking in ? I am in chicago.
I am looking to now find a condo or TH which will break even or only cost me 200 or less a month. Am I totally wrong for thinking this way ?
The reason is that I cannot make things cash flow with 20% down.
I am my own bird dog - I am a realtor. I sit all day and find properties for myself. Some I am interested in - some I am not. Do not meet my criteria. But...they meet yours. I have 3 deals going now. Positive cash flow. I can let you know of some buys with PCF. I would not buy anything with a negative cash flow if you are just starting out in investing and unless the property is in a fast apprecating area. But defintiely NOT as a beginner investor. I can find you deals - seriously.
Quote:
On 2007-07-09 15:35, sunny_8 wrote:
How do you find bird/dogs in the area which you are looking in ? I am in chicago.
I am looking to now find a condo or TH which will break even or only cost me 200 or less a month. Am I totally wrong for thinking this way ?
The reason is that I cannot make things cash flow with 20% down.
most likely none of HIS own money down... so "no money downs" are done everyday under that context!
-Kelvin
Kelvin is right.
No money down means "none of your personal $$ down" You have probably done the most common no $$ down several times. With is leveraging collateral on another property, using that cash as your new down payment.
OR sometimes they will teach you to take distressed properties subjest to.
Thats my guess. So are most of your properties in your home state?
Nathan
With that broad of a post, your best bet is to just read like crazy on this board. If you have some specific figures and questions, then you will get some good answers.
SL
I have heard the following proposed:
LP/GP
50/50
70/30
But it varies greatly
can you raise rents in a 50% vacant property?
416 for insurance? Not in CA, my car is more.
can you get any info from the remaining tenants that might give you insight into the property?
Is she current on the mortage?
Subject to deal?