I really want to get into buying properties, but I'm scared

[Anonymous]

I have major imposter syndrome and as a female 31yo who grew up very LMC, I'm always second guessing myself. I've been wanting to do this since I was a teen when I found out that a distant family member quietly owned a bunch of apartment buildings while keeping his day job as a mechanic and when he was older, he and his wife thoroughly enjoyed retirement as opposed to what I was used to seeing- financial stress, not being able to afford quality care, having nothing to leave your children etc.

I am very, very interested in owning 2 or 3 flats in Chicago. I know the neighborhoods well and have researched endlessly over the last 10 years, but I still can't bring myself to start looking. It seems like such an unattainable pipe dream that's only for rich people or older males.

I have a 20%+ downpayment saved. Where do you start? Is it possible to find a credible mentor?

[Anonymous]

Anonymous wrote:I have major imposter syndrome and as a female 31yo who grew up very LMC, I'm always second guessing myself. I've been wanting to do this since I was a teen when I found out that a distant family member quietly owned a bunch of apartment buildings while keeping his day job as a mechanic and when he was older, he and his wife thoroughly enjoyed retirement as opposed to what I was used to seeing- financial stress, not being able to afford quality care, having nothing to leave your children etc.

I am very, very interested in owning 2 or 3 flats in Chicago. I know the neighborhoods well and have researched endlessly over the last 10 years, but I still can't bring myself to start looking. It seems like such an unattainable pipe dream that's only for rich people or older males.

I have a 20%+ downpayment saved. Where do you start? Is it possible to find a credible mentor?

What is your day job? How stable is it. Can you carry the mortgages if you don’t have paying tenants?

Acquiring property 30 years ago was totally different calculation because prices were much cheaper so you broke even almost from day one. At todays prices, rent often doesn’t cover mortgage let alone vacancies and repairs/maintenance.

[Anonymous]

I would start by buying one you want to live in and renting out the other units. Once you get some landlording experience under your belt you can branch out.

Is the distant family member still living? Do you know who inherited the apartment buildings? That may be a contact point for someone to bounce thoughts/questions off of.

[Anonymous]

I think this is a very good idea but the interest rates that are available right now are a nightmare. Plus prices haven’t really come down yet. I would wait.

[Anonymous]

Anonymous wrote:I have major imposter syndrome and as a female 31yo who grew up very LMC, I'm always second guessing myself. I've been wanting to do this since I was a teen when I found out that a distant family member quietly owned a bunch of apartment buildings while keeping his day job as a mechanic and when he was older, he and his wife thoroughly enjoyed retirement as opposed to what I was used to seeing- financial stress, not being able to afford quality care, having nothing to leave your children etc.

I am very, very interested in owning 2 or 3 flats in Chicago. I know the neighborhoods well and have researched endlessly over the last 10 years, but I still can't bring myself to start looking. It seems like such an unattainable pipe dream that's only for rich people or older males.

I have a 20%+ downpayment saved. Where do you start? Is it possible to find a credible mentor?

What? Only for older males? Heck no! I know many women (and non-white women) who have been investing in real-estate for years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have major imposter syndrome and as a female 31yo who grew up very LMC, I'm always second guessing myself. I've been wanting to do this since I was a teen when I found out that a distant family member quietly owned a bunch of apartment buildings while keeping his day job as a mechanic and when he was older, he and his wife thoroughly enjoyed retirement as opposed to what I was used to seeing- financial stress, not being able to afford quality care, having nothing to leave your children etc.

I am very, very interested in owning 2 or 3 flats in Chicago. I know the neighborhoods well and have researched endlessly over the last 10 years, but I still can't bring myself to start looking. It seems like such an unattainable pipe dream that's only for rich people or older males.

I have a 20%+ downpayment saved. Where do you start? Is it possible to find a credible mentor?

What? Only for older males? Heck no! I know many women (and non-white women) who have been investing in real-estate for years.

Op here. How do I find women like this that aren't sales-y or frankly predatory influencer types? I've tried to look online for people in my area but everything I find is pay for X class or "buy into this deal trust us its great!" I feel lucky to have had a majority of my friends for my whole life but that also means that my friends definitely are not in the position to know about this. I think this is a big reason I feel out of place to consider this. I guess I need to somehow break into some additional netowrking/social circles.

[Anonymous]

I feel like I've seen a post like this before...OP did you post about this previously? And if so, what did you think of the advice offered? If you haven't posted before, maybe do a search and see if there's anything useful there.

[Anonymous]

This is not the time to get into real estate

[Anonymous]

Anonymous wrote:I think this is a very good idea but the interest rates that are available right now are a nightmare. Plus prices haven’t really come down yet. I would wait.

+1

And buying real estate because you have imposter syndrome seems like a really bad idea. Managing a property from out of the area is going to be a hassle. Some areas like the DC area are almost impossible to generate any cash flow. And with high interest rates and high housing prices, it is basically impossible unless you are talking about multi unit dwellings. I would also not invest in real estate unless you are handy and willing to manage the property yourself. The fees that property managers and handymen charge you is going add up big time.

[Anonymous]

Anonymous wrote:I would start by buying one you want to live in and renting out the other units. Once you get some landlording experience under your belt you can branch out.

Is the distant family member still living? Do you know who inherited the apartment buildings? That may be a contact point for someone to bounce thoughts/questions off of.

This is good advice -- we have a Chicago two flat, live in one unit and rent out the other. One thing to be aware of is that under the current assessor, two-three flats are getting hit especially hard with increased assessments, so our taxes will likely more than double. My only regret is that we didn't get a three flat. We'd love to have more rental properties but hard to find ones where the math works right now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think this is a very good idea but the interest rates that are available right now are a nightmare. Plus prices haven’t really come down yet. I would wait.

+1

And buying real estate because you have imposter syndrome seems like a really bad idea. Managing a property from out of the area is going to be a hassle. Some areas like the DC area are almost impossible to generate any cash flow. And with high interest rates and high housing prices, it is basically impossible unless you are talking about multi unit dwellings. I would also not invest in real estate unless you are handy and willing to manage the property yourself. The fees that property managers and handymen charge you is going add up big time.

I didn't realize the question was about owning from outside of Chicago -- wouldn't recommend that, hard enough to make the numbers work if you can largely self-manage but if you have to pay fees to find tenants and for minor repairs, snow clearing and so on, you'll be in the red. Also, Chicago is incredibly tenant friendly, we've had great tenants but that's not guaranteed.

[Anonymous]

Anonymous wrote:This is not the time to get into real estate

Right? Keep saving cash and buy in a few years once interest rates have stayed high for a while. They’re not going back to 2% any time soon. Hold cash and wait for unrealistic sellers to lower their prices. If you have cash in a recession you can make a cash offer and they’ll be more likely to accept.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think this is a very good idea but the interest rates that are available right now are a nightmare. Plus prices haven’t really come down yet. I would wait.

+1

And buying real estate because you have imposter syndrome seems like a really bad idea. Managing a property from out of the area is going to be a hassle. Some areas like the DC area are almost impossible to generate any cash flow. And with high interest rates and high housing prices, it is basically impossible unless you are talking about multi unit dwellings. I would also not invest in real estate unless you are handy and willing to manage the property yourself. The fees that property managers and handymen charge you is going add up big time.

I didn't realize the question was about owning from outside of Chicago -- wouldn't recommend that, hard enough to make the numbers work if you can largely self-manage but if you have to pay fees to find tenants and for minor repairs, snow clearing and so on, you'll be in the red. Also, Chicago is incredibly tenant friendly, we've had great tenants but that's not guaranteed.

Honestly, if you’re scared you’re not wrong. You can get financially fked by a bad tenant. Why not just dump the money into an index fund like VTSAX? Much less work and you’ll probably come out ahead financially.

[Anonymous]

Anonymous wrote:I think this is a very good idea but the interest rates that are available right now are a nightmare. Plus prices haven’t really come down yet. I would wait.

Interest rates are still historically average to low.

[Anonymous]

being a landlord and watching the money come in isn't reality. Your uncle could do it because he was a mechanic. Tenants can be really demanding.