Buying Our First Building - Tips for New Real Estate Investors
Discover how we built our multifamily portfolio in Chicago! Perfect for new real estate investors, learn tips, tricks, and best practices to navigate the ups and downs and achieve success faster.
Why Multifamily Was a Game-Changer in Our Financial Strategy
When we first ventured into multifamily properties, we knew it was a smart move, but we didn't anticipate just how transformative it would be.
For example, owning a multifamily property covers our mortgage in full. We live within three miles of Chicago's Loop, so that's a significant amount of money.
But the real game-changer was how it enabled us to save nearly 80% of our income.
This level of saving was something we had never experienced before and it opened up new avenues for us.
Expanding Our Portfolio with Confidence
The savings from our multifamily investments were pivotal. They didn't just sit in a bank account; we put them to work.
Over the course of four years, we acquired three additional parcels and two buildings, bringing our total to 13 units worth just shy of 3 million, with 1 million in equity.
The best part? All of these were passive investments with positive cash flow. We aren't chasing hyper-growth or over-leveraging ourselves.
Our approach is slow, steady, and data-driven, focusing on areas we know well, and never overpaying for a property to get a deal done.
The Financial Benefits That Keep on Giving
The financial benefits of these investments have been easy to see.
Not only do we enjoy the cash flow, but we also reap significant tax benefits, especially when using our coach house for short-term rental. Plus, there's the appreciation upside, which adds to our long-term financial security.
Currently, our cash flow stands at about $5,000 a month, and we're on track to hit $10,000 in the near future. It's incredible to think about how far we've come from our first condo purchase.
This also dovetails with our desire to give back. Preserving and rehabilitating vintage buildings while also providing affordable, safe housing in one of the world's coolest neighborhoods is also fun for us.
A Calculated Approach to Growth
Our journey in real estate has been about making calculated decisions. We've always backed up our choices with solid data and a deep understanding of the markets we invest in.
This approach has allowed us to grow our portfolio without the stress of overextending ourselves financially. It's a testament to the power of strategic planning and understanding the real estate market.
Reflecting on Our Success
Reflecting on our journey, we're amazed at how our lives have changed since we decided to invest in multifamily properties.
The financial freedom and stability we've gained are beyond what we initially imagined. It's not just about the money; it's about the peace of mind and the future we're building for our family.
Looking to the future, we feel a sense of optimism.
Our real estate investments have set us on a path of financial independence, and we're excited about the opportunities ahead.
Our journey has shown that with careful planning, a clear strategy, and a bit of patience, achieving financial freedom through real estate is not just a dream, but a very achievable reality.
