All Forum Posts by: Atul Mohlajee

I had a similar situation but tenant did not tell me that her husband is moving in with her after doing jail time.  The village police informed me.  I put a no tress passing sign at the property (police told me to do that), and told them to move out which they did quickly because they knew police was supporting me.  The village of Forest Park has a no crime ordinance and police was working with me on this.  I would get them out ASAP before any crime is commited on neighbors, family, etc.

I assume 15% of the rent for regular repairs and capital expenses (roof, furnace, windows etc.) and 5 % of the rent for vacancies. Total 20%. 
Utilities paid by me or lawn mowing and snow, realtor commission for renting, legal expenses etc.  are over and above these 20%.  Most likely I can pocket 50% of the rent for paid off property.  For a mortgaged property, at 3-4 % interest, a few hundred dollars a month.   For high interest mortgages, usually break even or negative.  

Cash flow is positive although small (between $200-$1200 depending on number of units in the property) on properties that I bought mainly 2011 thru 2017 because of low buying prices and rents have gone up well.   I have always used cash flow to pay off properties and lived on W2 income and still do.  Yes six paid off properties have good cash flow around 50% of rent.  Cash flow is after assuming 15% repair and capital expenses and 5% vacancy expenses.  Also subtract tax, insurance, utilities if any, lawn mowing, and snow shoveling, any other expenses.  For cash flow to live on, properties should be paid off and self managed.  I have realtor to find tenants and a maintenance man too.  I do property management only that saves 10% and can be done while managing a W2 job.  

I own 4 two/three flats bought between 2013 and 2020 in Forest Park, Illinois, at low interest rates and prices in 200000's  They cash flow nicely and prices have increased a lot.  But at current prices and interest rates, this will be very challenging unless you go to cheaper areas or nearby suburbs that are cheaper.  NW Chicago is very expensive as a rental.

I would wait 6 months. Then raise 75 or even 100 if below market by that much. 

Very true.  Immigrants look at opportunities differently when they see them. I am an immigrant who came in 1986 with $20 and have quite similar portfolio in real estate and other investments.  The only difference is that I had education and had good jobs.  I can understand their struggle with limited education and language skills and still achieving so much that majority of people 99% donot.  They had extra challenges of language, culture, and education which they overcame.  Everyone can be inspired by their journey.

I had same feelings while buying during 2008-2016 years and was always a little fearful/cautious.  Now I wish I had taken even more mortgages at those interest rates and home prices.  Key is to have reserves.  I reached reserves of 6 months of personal and rental expenses.  I could manage 6 months even if I lost my job and none of the 15-16 tenants at that time paid me rent for 6 months straight although it never happened.  Had some vacancies which is normal, some major capital expenses handled easily but nothing drastic happened.  Current cash flow is much higher as I paid off half of my properties with time.

Thanks Colleen.  

When they sent written renewal notice , it was written if you are not renewing " No action Required", This statement shows no action required and that is why they backed up and what example they are giving by not clarifying things and manipulating it.

These property management companies have their own Lawyers, If they paid me back they knew they are Foul playing, I play by rules and Expect the same from others , and I don't agree with people who are siding with wrong side and attacking back and also taking their grudge on others is far from being Professional rather they should not be in the jobs where they donot have patience