All Forum Posts by: Unai La Salle

Hey Joe, if you are still accepting clients.  Please PM me with your company's info.  Thanks.

duplicate post.  Mod, please remove.

@Joe H.

Do you manage the Pilsen area by any chance?  If so, please let me know.

Thanks.

Neither.

Hi all,

After much legwork, I have narrowed down my choice for a property management for a 5-unit property in Pilsen to two.  I am having a hard time deciding and would appreciated your thoughts. 

Management A - they charge 5% of gross rent, no charge on service calls (but I still have to pay for parts and/or a professional's labor if so needed), and charge one month rent if they have to rent out a vacant unit.

Management B - 7% of gross rent, $75 for each service call, and no charge for renting out an empty unit. 

My building is currently fully rented, tenants are a mix of college students and young professionals. 

I talked to both companies and check out their reference, both are more than solid. If all things bring equal, which one do you think is better for my bottom line?

You don't seem like the right kind of buyer for this property because you're looking to rent and positive cash flow.  I don't know if you're aware but this building is under rent control and the 2nd unit's $1,900 rent cannot be raised much and there are tight restrictions on removing the tenant.

The type of buyers this property is perfect for are two separate parties (think friends or siblings) buying it as a TIC with each party occupying one unit. The existing tenant will be kicked out using OMI (Owner Move In), assuming the tenant is not protected. Then they do a quick conversion to condos in two years and raises the property value.

Such buyers are most likely buying on emotions because they are purely looking for a nice home to live (not cash flow), possibly buying in that location because of proximity to family or about to start a family, etc; so they will pay top dollar.  I've seen it happen too often - investors using brains are no match for home buyers using hearts.

At any rate, there is no reason for you to rehab the tenant-occupied unit beyond basic liveable condition since the rent will be low.  

I don't see how it makes sense for a lone investor.  For a single party, the only way it'd make sense is if you fall in love with the house and must have it.

With that said, I can see it going for north of $1,400,000.

I am in the process of closing on a 5-unit property in Pilsen/Heart of Chicago very close to Harrison Park.

After closing, I will need property management to manage the building.  Looking for any recommendations this forum can provide.

@Mark Ainley, if you service this area please PM me.

Thanks in advance.

My experience on the ground tells me that the map's numbers are about 10%-15% too high.

We recently rented out a South Beach two bedroom loft for $4,000, we have to cut the price from $4,300.  For brand new luxury condos on 480 Potrero Ave (in the Mission), a one bedroom rents for $3,000.  So I don't think these numbers are accurate.  If it was last year, the number would still be high but at least I'd believe they are within range.

As my search for multi-units in Pilsen/Little Village continues, I can't help but notice that there are more listings and therefore more choices in Humboldt Park and Logan Square.   I am seeing some properties with decent returns east of Kedzie, but some really good returns west of it, the further west the better numbers.  I know that side of Humboldt/LS is still a gritty area.  My questions are: how bad is it?   Anyone see that gentrification is already taking shape?  What do you think of the area west of the train tracks that cut though North Ave?   Would you invest there?

I forget to mention I am an out of state investor.  In addition to Pilsen, I also have questions about Humboldt Park.  I will start a new thread about that area so as not to dilute the information about Pilsen/Little Village.