I am new to investing, and it seems that it is difficult to find an area where I can break even, let alone go cash flow positive, on my first property (residential). IT also seems that there is a surplus of rental homes on the market. Does anyone have any insight into what suburbs may be more favorable for a first time investor to have a little success?
I currently live in Chicago and found a real estate investing club where I’ve found two deals. Because I was new to investing the gentleman that assisted me has what’s called a Deal Book. All of the investors in the book list with him, in addition to other places. In the book he lists the property, estimated value, rehab costs if any and how much the SELLER is giving back at closing.
He also offers coaching on newbie investors. Theres a price though. If you are serious he walks you through your first deal—puts all of the numbers together and explains things in detail to you. I just made my first offer to one of the deals in this book.
Earnest Money—$1,000.00
Closing cost approximately $6,000.00 but Im only taking $480.00 to closing. There’s a Sellers Concession in my contract whereas the Seller pays 2% toward my closing costs.
I also have a Seller’s repair contract attached to my original contract whereas the Seller is going to return $68,000.00 for repairs.
The return on my first deal $68,000.00-$5,000.00 to the company that assisted me with putting the deal together.
There are also tenants in the building that pay the entire mortgage. Well if they decide not to pay I have a nice stash to pay the mortgage and start on my 2nd deal.
The Southside of Chicago, Harvey, Riverdale, Englewood, South Chicago, —SOUTH SUBURBS PERIOD!!
Start there
Voluminous, I’m interested in learning more about that club. Can you email me with details?
Thank you for the information. That was very helpful. If you could email me the club information that would be great!! I will start looking into those suburbs as well. I live in the western suburbs. 
Hey Lori, I’m in Addison.
I became a real estate investor in the Chicago area in January 2006. I found a club that has been fabulous when it comes to actually helping the investors. http://www.wcrt.org.
In my opinion they are the premiere Chicago area group. They meet the first Thursday of every month in Oak Park. Then they have about 12 subgroup meetings through out Chicago and Northern Indiana every month. There knowledge/experience base ranges from some of the most successful investors in Chicago to brand new investors.
Take a look at their website for more info.