All Forum Posts by: Alex Martinez

Hi all. Looking for some input on steel vs wood rear porches with decks.

For a multi-unit rental property in Chicago, is it worth paying more for a steel porch over a wood porch? My understanding is that both will require maintenance but steel is ultimately more durable, fire resistant, and generally considered more aesthetically pleasing. However, I've gathered that a steel porch is about 50-70% more expensive than wood.

Any thoughts on this would be greatly appreciated. Thanks!

@Meryl McElwain Understood - a basement unit like this would be legal (since it would meet code requirements) but non-conforming (due to current zoning). Thank you very much!

@Meryl McElwain This may be a silly question but when looking at 2-4 unit building with a basement/garden unit that is not legally zoned as an additional unit here in Chicago, can permits be pulled for the renovation work on that basement?

I’ve heard that can be done and one can even rent an illegal basement to Section 8 as long as it’s up to code and permits were pulled. Looking for some confirmation and clarity if possible.

Thanks in advance!

Very helpful, thank you! @Alexander Felice

Hi BP Community,

Can some BRRRR investors please share their thoughts on using cash vs financing when implementing this strategy? Please see my thought process below:

I haven't come across any posts on the using cash vs financing (leverage) comparison when planning to BRRRR rental properties. For this discussion, lets assume that financing would come through a construction loan from a mortgage lender/bank.

I've seen people argue that financing and limiting the amount you invest in the purchase and rehab of a property increases your ROI. However, the idea with BRRRR (when done correctly) is that you'll recover all or most of your invested capital at the refinance stage. This would give you an infinite or very high ROI since you have no/little money left in the deal. Of course, it's assumed that your running your numbers accounting for the mortgage at the refinance, budgeting for repairs/maintenance/vacancy/etc.

Paying cash would also allow you to save on closing costs when purchasing the property and give you some advantage when negotiating; you'd be coming with a cash offer and be able to close quickly appealing to motivated sellers. You're also not having to pay off a mortgage while the property is getting renovated.

Again, I'm looking for BRRRR investors to share their thoughts on using cash vs financing...

Thanks in advance!