All Forum Posts by: Adrien C.

Jonathan Petersen out of Munster and Mike Kvachkoff out of Crown Point both specialize in RE. 

@Account Closed  We get $2K pretty consistently in Munster and demand is high. Things have slowed in last 45 days so might not happen overnight but it'll happen. Munster requires a rental registration which is $200 and they'll do a quick inspection. We've had minor things to repair after those inspections. 

@Chris Seveney yes they require contractors to be licensed in the city. Most cities in NW Indiana require the same. I got licensed. Wasn’t a big deal. The people crying are the ones trying to sneak through a $40k renovation w no permits and adding illegal bedrooms or second units in the basements and attics. Know their rules and abide by them and you’re fine. 

In Indiana, there are some towns that have a water provider and a sewer provider. In some towns, the town supplies water and bills for water/sewer are combined. Only the sewer can lien the property. Water will always stick with the name on bill. Because of this, some towns won’t allow tenants to put in their name or charge crazy high deposits. That may have been the case here and tenant couldn’t afford or maybe didn’t qualify (outstanding debt from previous place) so found someone to get it on for them. Some towns force owner or next person to pay delinquent amounts. That’s illegal but you going to sue them for $300 while you wait for them to turn it on?  For towns within separate sewer, we have them send us bills when the account goes delinquent. We’ll pay and add to tenants ledger. Utilities get credited first so if they refuse to pay more than current rent amount, they’ll be short on rent that month. 
So in your case, don’t have it put in your name if the tenants close account or city closes for non payment. Make tenants responsible for the shutoffs. 

My brokerage will rarely accepts an as-is addendum anymore because buyers used it thinking it gave them an edge but then back out when they get cold feet. The addendum allows an inspection but you can’t ask for repairs. To do that, you’d have to amend the PA and select a different inspection contingency). The language allows buyers to back out for any undisclosed defects. Defects is defined in the PA (which most agents haven’t read nor understand). I’ve seen too many back out, site undisclosed defects without stating what. We’ve taken some of these to arbitration and lost. Both times the arbitrator mentioned the addendum does not say defects need to be explained. It’s garbage. We will only do inspection contingency now so they have to send inspection response and we have ability to fix or walk. 

Hammond has been one of my favorite markets locally for years. Can still find solid deals there. Happy to walk you through the different areas. Highland is a nicer area with higher prices. 

If you're using FHA loan, you're required to live in property. 10K down with FHA financing is a decent start and can get you some good stuff. I'd safe some so you have "what if" money. What areas in NWI are you interested in?

Gary is a good market but it's block by block. East Chicago is a good market- just older buildings so bump up your repair budget. Hammond is a solid rental market. We manage a lot there. Hobart and Lake Station are also good options. Be careful of the cheap stuff you see in Gary. It's cheap for a reason and needs a ton of work. Like most areas, it's tough to find good workers and material prices are still stupid. 

Just jump the border and look at NW Indiana. Hammond is a great rental market and an easy ride from Chicago. We manage for a lot of people in Chicago. They like being hands off but at the same time being just a short drive away if they want to see the property.

I manage properties for a lot of out of state owners (I'm in NW Indiana). Some buy in personal name and some buy in LLC. I've spoken with half dozen attorneys on it and get half dozen answers. As long as you have adequate insurance on house plus umbrella policy, probably doesn't really matter which route you take when you have a handful of properties. Most with LLCs have a registered agent in Indiana for the Indiana LLC.

As far as taxes, you really shouldn't pay much especially if the property is leveraged. The expenses (taxes, interest, insurance, repairs, management fees) plus depreciation usually get you pretty close to a net $0 on a single family home. If it's owned cash, you'll likely see a gain but we're not talking about a life changing amount per rental. The appreciation and other benefits offset the minimal amount of tax you'll pay on the gains. But chat with your CPA and give him some fake numbers to play with to see what it'd do to your situation.