All Forum Posts by: Brendan M.

@Brie Schmidt what ended up happening here? 

@John Warren

Thanks. I'm not really looking for legal advice. Moreso, just something I can point to where I can tell a tenant "Hey, the lease doesn't allow smoking because of..." 

Will it stand up in court? Who knows. But I'm not arguing this in a court of law, just want to give the impression to tenants that it's not allowed. I'm not evicting. 

Anyways, I'll be writing this into leases moving forward, but just wanted people's perspectives.

@Mark Ainley @Tom Shallcross @Brie Schmidt @Henry Lazerow

Since this thread is on smoking, I don't have any specific language in my lease but I use the CAR lease for 2022. 

Is there any clause I can refer to that doesn't allow smoking? I think moving forward I'll just have a separate specific part of the lease that addresses this, or potentially add an addendum to my current leases.

Thoughts? 

I'm thinking one of the following:

10. Tenant Maintenance Obligations. Tenant shall maintain the Premises in a
clean, presentable and safe condition at all times and in accordance with all health,
safety and building code regulations.

PUBLIC HEALTH
(410 ILCS 82/) Smoke Free Illinois Act.

"Private residence" means the part of a structure used as a dwelling, including, without limitation: a private home, townhouse, condominium, apartment, mobile home, vacation home, cabin, or cottage.

Damages and Negligence. Tenant shall be liable for any damage done to the
premises as a result of Tenant's or Tenant’s invitees,

No unsightly or unsanitary practice which could undermine the sanitation, health
or appearance of the building interior or exterior shall be permitted.

13. No activity carried on within the Premises or common areas of the property will
be permitted which threatens the health, safety or property of any building occupant,
or of Landlord.

 I've done the same thing over the last year and found it incredibly difficult to find cash flowing properties, especially because I was using low money down. I was able to pick up a building that when brought up to market rates, should bring in about $5300 on 480K purchase price. 

I agree with you on paying lower prices and higher rates. Can always adjust the rate, can't adjust the price. The main thing is cash flow - if you have cash flow the fluctuations in price don't matter all that much unless you plan on selling. You can always just wait it out and wait for the market to be in a better position. 

Are you seeing more 3-4 unit buildings cash flow? There's obviously been a huge run up in prices over the last few years especially given sub 3 rates, and while a 15-20% discount can make a large difference price wise, I'm curious how that is balanced against interest rate increases?  

Even at a 100K discount, when rates are 6+, it makes it tougher to cash flow. Now I do agree that it's going to be a better time to buy over the next year and the market is shifting back to a buyers market. I think sellers are realizing that they aren't getting the prices they are hoping for and they'll continue to tick down and sellers will be more flexible on pricing, but curious what you're seeing. 

@Henry Lazerow

I'd second using Beyond Pricing or PriceLabs. I've used Beyond Pricing which I'm considering changing to PL given the flat $20/mo. It's helped me fetch higher prices on the weekends where I think is where you really make your money. 

I was just getting into the swing of things in the first half of the year, and I think I definitely underpriced it but now that I have a swing of things, I'm expecting 2-2.5x vs Long term rent for 2022. I think that could be pushed up to 2.5-3x next year. I have a 2br/1ba (600 SQFT) unit in Albany Park, it has a pull out couch and sleeps 6. 

I've pretty much automated every aspect of the process so it runs pretty seamlessly at this point.

Congrats @Michael Johnson! What type of loan did you use for this? It looks like you ended up putting about 10% down, right? 

@Jake Fugman if you ever come across anything else off market, I'd be happy to take a look. I'm looking primarily for a legal two with extra units. I'd be looking for FHA and trying to stay away from self sufficiency since it's extremely hard to find something that works, especially with higher interest rate.s

 Were they legal 3/4? I'm guessing that's home possible, right? 
5% makes it easier since there is no self sufficiency requirements. 

What areas were they located in? 

Hey all,

I own two four flats (Albany and Kilbourn Park) that I've househacked and looking for a third. I was fortunate to do Homepossible (5% down) on those two but now I'm relegated to FHA and 3.5% down. I've been looking at properties for about 1.5 months now, and I'm just having trouble seeing how some of these properties cash flow at current prices. I recognize that I'm putting a very small amount down (I'd be putting down 1-1.5% since I'm including my 2-2.5% commission as an agent), and not expecting large cash flow numbers, but I'm hard pressed to find anything that makes financial sense once I were to move out.

In addition to that, I'm restricted in what I can purchase because of FHA rules. With self sufficiency rules for 3 and 4 flats, those are going to be priced out. So, I'm really looking for a two flat that will cash flow, ideally with 1-2 illegal additional units.

For agents/investors/househackers, has anyone seen houses that actually cash flow? The market seems so hot where I'm seeing legal two flats (with or without basement/attic units) going for 475K and up and I'm just baffled on how these are cash flowing? Hasn't anyone noticed this.. I feel like I'm taking crazy pills! 

We're early in the spring cycle and I expect more inventory to come up - but am I just being impatient, or is this an issue that others have noticed? Any recommendations on approach? Are there other alternatives for low money down programs for house hackers I could take advantage of? I've done some off market cold calling and may pick that back up if I'm not finding success through the MLS.

I have no issue moving quickly if something does make sense - I can usually schedule same day and make an offer within a few hours of seeing the property, but I'm having trouble with things even penciling out. 

Neighborhoods - Albany Park, Portage Park, Jefferson Park, Logan Square, Humboldt Park, Kilbourn, Avondale, Irving Park, 

Keywords: Househack, Chicago, Multi family, garden unit, cashflow, ADU

Criteria - Northside, Purchase price- under $560K (FHA Loan limit of 540K for two flat), ideally 3-4 units, cash flow of 100-400 bucks/mo for entire building. I'm expecting I'll do cosmetic rehab over time to push rents up closer to market. That's a mid/longer term play.

Thanks! Curious to hear everyone's thoughts. 

@Superior Mitchell

Ask for any historic water document on file and send the request to 

DWMfoia (at) cityofchicago (dot) org