Home Buying in 60623>Question Details

Daniel, Home Buyer in Chicago, IL

Looking to invest in a property that I can set up as section 8 and find some good people to rent it out, preferrably older folks.

Asked by Daniel, Chicago, IL Wed Jun 22, 2011

I am looking for a solid investment property in the North Lawndale area. If someone can assist me in finding a place and do the numbers for renting it out to maybe some good Section 8 housing tenants I would be willing to invest in the property.

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15
Michael Hobbs’ answer
Good Afternoon Daniel,
You mention that you live in the area.
There is a lot of good housing stock in North Lawndale and based on the numbers you mentioned below about your investment parameters, I would encourage you to connect with Bardan Azari @ CPI LLC, http://www.cherrypickerinvestments.com
They are a foreclosure buyer service for investors, rehabbers and desiring landlords who want to get the right property at the best price. Also, his firm works in conjunction with Realtors, so you if already have a contractual agreement in place to be represented, you are in even better company because you can now have sets of professionals helping you identify the best investment real estate opportunities.

Based on some of our clients recent purchases in North Lawndale, they are acquiring houses for $30,000 to $60,000 and spending from $5,000 to $20,000 to fix them up for tenancy and then generating $1,000 to $1,300 / month in rental income. Depending on much cash versus financing you utilize, your cash on cash return can be from 15 to 30% which far outpaces what you can earn in the stock market. Lawndale and Garfield Park have been two of the harder hit neighborhoods due to the sheer volume of investor owned properties.

Granted, not everyone wants to be a landlord, but it seems you are committed to making the neighborhood better by being one of the accountable landlords!
Kudos to you!

Sincerely,
Michael Hobbs
President
PahRoo Appraisal & Consultancy
0 votes Thank Flag Link Sun Jun 26, 2011
BEST ANSWER
Numbers: There are a lot of condos out there that are available and a home might be your best investment as people who have been displaced from their homes will pay a higher rent because it is back to normalcy.

With that in mind, you would be required to put down a certain percentage re the loan as it would be considered investor but I think you know this already.

You want everything covered, PITI, water and have the tenant pay for the utilities. Tenant maintains the yard (snow removal/lawn maintenance, but you monitor. You need to consider that you need to have a return on your monthly income of no less then $300 after everything is paid for including yourself, for management.

One of the things I suggest to my clients is that the names of the individuals who will occupy are to be listed and an automatic increase in rent by "x" amount of dollars should you find out that someone is living there who isn't on the lease ...even for short term.

The City of Chicago has a program too for renters that you might want to consider.

Bottom is you need to factor in the age of the roof, the cost to repair and add that and other things such as Furnace, Central Air, Windows, Appliances as they are considered the Debt Service Ratio ... which is the amount of money you need to "reserve" each month from rental to replace those items and then pay yourself and still have a $300 surplus.

Hope this helps you to figure out what you need to get in rent when being an investor. It all depends upon the location, the amenities offered in the home as well as number of bedrooms.

Barb Van Stensel
Keller Williams Lincoln Square
2156 W. Montrose
Chicago, IL 60618
773.746.5395
0 votes Thank Flag Link Wed Jun 22, 2011
Send your e-mail adress and I will send you some active listings in the North Lawndale area up to and including 150,000.00 price range. albert.burns@apreus.com
0 votes Thank Flag Link Thu Jun 23, 2011
Daniel, you should also know that I share your desire to work with voucher holders in order to assist them to acquire much needed housing. I can refer you to many single moms I have worked with & to the landlords with whom I have placed them. Section 8 does not frighten me & there is a need for more investors like you who are willing to work with responsible voucher holders.
0 votes Thank Flag Link Thu Jun 23, 2011
Daniel - I'm one of the 2 Barbaras who responded to you early on. I'm the one who has worked with both investors & Section 8 voucher holders & currently has a property on the market with 2 tenants already in place. I found the place for my investor (as well as other places which she hasn't yet rehabbed) & I also found her the tenants. Call me at 773/914-5309 or email bbiederman@citypointrealty.com
0 votes Thank Flag Link Thu Jun 23, 2011
I am open to specific proposals I can be a cash buyer at up to 150k but, I would rather finance a portion and find a great deal that pays for itself while paying me back over time. I have great credit (thankful for that) I am open to a solid investment as I described in my post and will know it when I see it; thanks for the interest
0 votes Thank Flag Link Thu Jun 23, 2011
Hi, Daniel!
What a great time to be searching for an investment property.And there are definitely great deals out there.
What areas are of interest to you?

Is this your first investment property purchase?

Best bet for you is to find a realtor experienced with exactly what you're looking for.

Give us a call at 312.242.1000 - we have a good number of experienced agents who will be able to help you for sure.

Best of luck to you!
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Thu Jun 23, 2011
Hello Daniel,

I am a real estate investor and have properites in those area available with section 8 currently rented tenants. Contact me and we can talk further. My e-mail address is redhotrei@hotmail.com

Thanks!
Tony
0 votes Thank Flag Link Thu Jun 23, 2011
Thank you for the advice so far, really helpful. Oh, for the record, I do live in the area and I am a tax payer who is basically tired of Section 8 landloards who refuse to be accountable for their tenants. I don't plan on using a discriminating ruler other than a decent person who is trying to have a good place to live while trying to get their life together, if that is an older person so be it but, I certainly won't have criminal activities or folks set on destroying the community as residents. I am looking for some help here and the 2 Barbaras and Albert I would like to get in contact to figure out the best way to move forward here. You guys have been the most helpful - thank you and I welcome others advice on the matter.
0 votes Thank Flag Link Thu Jun 23, 2011
Dear Daniel, Please contact me @ 773 551 6554 or tatiana@conlonrealestate.com
I would like to discuss your options. Best regards. Tatiana Perry
0 votes Thank Flag Link Thu Jun 23, 2011
You can buy any rental property and get sectiob 8 residents if it meets standards, I only answered to caution you about stating your preference for older folks, you could be opent to a discrimmination suit
0 votes Thank Flag Link Thu Jun 23, 2011
I hope that you plan on living in your unit as this area is Filled with Section 8 Tenants. I feel sad for those tax payers who actually live in the neighborhood and have to live next to the tenants. Typically the Investor is looking for "Elderly" people to live in this area however with the crime as violent as it is and with those who walk around the areas stoned on whatever drug they are using, its really hard to find an Elderly person who would want to live near all of this. Although your efforts seem great, I'm sure eventually you'd get tired as well and rent to whomever can bring the tax payers $$ via section 8. A better choice.. start a businesses.. invest in something other than another Section 8 Tenant. This area certainly doesn't need another but if you decide to rent to Section.. please ask yourself if you would live next door to your tenant.
0 votes Thank Flag Link Wed Jun 22, 2011
I have a greystone 2-flat for sale in east Garfield Pk that's already been totally rehabbed & rented to Sect 8 tenants now. I've been working with buyers & successfully helping them find such properties in any neighborhood & I've been successfully working with Sect 8 voucher holders to help them find such properties to rent. So I've worked both sides. I can help you find a property & fill a property.
0 votes Thank Flag Link Wed Jun 22, 2011
Daniel,
I have helped many investors purchase these kinds of property. PLease contact me.
Jesse McGrath
@properties
312-545-2775
jmcgrath@atproperties.com
Over $150mill sold!
Brian Grossman Group
0 votes Thank Flag Link Wed Jun 22, 2011
Daniel,

Please email me at brandon@krain-chicago.com
I have a few properties that are available for purchase and already rented to CHA voucher tenants.

Thanks,
Brandon
0 votes Thank Flag Link Wed Jun 22, 2011
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