How to Invest in a Suburban Market with Ben Walhood, Episode 23

Ben Walhood is the President of the Chicago Area REIA, the largest non-profit real estate organization in Illinois. He is also an investor operating predominantly in the western suburbs of Chicago. He fixes-and-rents residential properties in working class neighborhoods. He has been interviewed by CNBC and the Chicago Tribune, and he has been a featured guest on the BiggerPockets, Freedom Real Estate Investing, and Best Ever Real Estate podcasts. Today, he shares how he navigates the western suburbs and how you can win in the suburbs as well! Listen Now!

• House hacked his first place in college, 3 bed, 2 bath for $150k

• Invested in Maywood as his first deal

• Was a neurosurgeon sales specialists before becoming a full-time investor

• From a small town in north Dakota, downtown Chicago was a foreign thing for Ben

• Looks for working class neighborhoods (look for vans/trucks with ladders and repair equipment)

• Uses the 1% rule 33,000 a year, $1,000, 100,000

• Target areas: Interstate 355 – straight west of Chicago, north and south 10 miles; Bloomingdale, Wheaton, Liles, Darion, Bolingbrook, Western Corridor

• Avoids Cook County due to the tenant-friendly laws; first tenant did not pay rent for 9 months

• Like diversification of markets in western suburbs

• Elmhurst is popular right now for new construction, Bolingbrook has cooled off, but saw a strong resurgence after the recession

• Chicago Area REIA (CAREIA) is one of the few non-profit REIAs and is volunteer run

• Watch rents to see where demand is headed

• Focus on return on equity, not just cash on cash

• Finishing up a 6-unit in Bloomingdale, with the BRRR model