All Forum Posts by: Abbas Mamdani

Hi Ran, I don't charge security deposit to my tenants, instead I have a non-refundable move-in fee that is almost equal to half the monthly rent. This can get tenants in with low upfront cash requirements and only serious tenants will apply as they know the fee is non-refundable. There is just too much to manage with security deposits in the city of Chicago. I have been advised from many people to do this. In regards to the damages, I have them sign a separate document that is called a lease addendum wherein I have all the policies spelled out and made them responsible for actual charges of any damages and called out water damage to be reported within 24 hours or they will incur a heavy cost of fixing. End of the day, you have to make sure your tenants can afford to live in your property and can pay out of pocket expenses. I don't think that putting price tags on various damages is a good idea. I have called out a couple of damages like smoke damage from the ovens, key replacement charges etc. 

Great job Akshay. How was the as-is value calculated? Appraisal?

Hello all, interesting conversation. Any recommendations in E Garfiled area i.e. specific blocks people have invested and are comfortable? I am not looking for Section 8, so not sure if the area is desirable for non-section 8 renters? I have multi unit cash flowing investments in Belmont Cragin/Portage Park and Hermosa and looking for value properties in a decent neighborhood anywhere in Chicago under $400k. I have been outbid left and right in Portage Park, North Park and Belmont Cragin. Too many hawkish investors with loads of cash in these areas (I am a newbee only 2 years in )...

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $455,000
Cash invested: $150,000

Bought a property needing some repairs and TLC. The property has 3-units in the Chicago Logan Square/Hermosa area. It is expected to generate positive cash flows and I intend to hold it for a few years.

What made you interested in investing in this type of deal?

Consistent cash flow and appreciation

How did you find this deal and how did you negotiate it?

Was brought through by my realtor

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Negotiated hard and made strategic upgrades

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dan Nelson!

Any idea on the closing costs for DSCR loans? I have heard it is about 4-5% of the loan amount. It means approx. $25k in closing costs for a $500,000 loan. Is this closing cost estimate normal for a DSCR loan?

Hi John, I am currently focus on MFH 2-4 units. Interested in generating significant  passive income. Are you an investor? 

Hello all, I am new to the real estate investment  and would like to learn from all the experience packed here !

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $430,000
Cash invested: $130,000

Bought a slightly run down property and spent $20k to bring it up to the code and some cosmetic stuff. Rented all 3 units out within 3 months of acquisition.

What made you interested in investing in this type of deal?

My best agent

How did you find this deal and how did you negotiate it?

My agent brought it up

How did you finance this deal?

25% down, 75% QM loan

How did you add value to the deal?

Did some renovation work

What was the outcome?

It came out great.

Lessons learned? Challenges?

Renovations could have been more targeted

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dan Nelson !