All Forum Posts by: Ben Meisel

Posting this for a friend who owns a 7-unit building in Chicago.  He's noticed very high water bills in the last year, including the most recent one for $6500. Finally it was determined that there is a leak in the water main coming from the street.  The fix quote is somewhere around $20k.  I don't know where the water meters are in Chicago, but apparently they can meter this leak.  Is it fully on the owner to pay for this?  It's definitely not in the building.  Do they offer some reprieve from the high water bill in cases like this?

Wondering if anyone has a solid referral for a company that can give him a second quote?  

Thanks!

In my experience, a portion of the rental income is considered (say, 75-85%).  The costs associated with the property are also considered, and with no mortgage, it sounds like you have very solid positive cash flow.  Hopefully you also have a strong rent history on those properties too.  That said, the best thing to do is to contact some lenders and discuss the current situation as well as a hypothetical scenario where you have another rental property.  They'll be able to give you some guidance, and remember that lenders will likely treat the situation a bit differently.  My opinion though, as long as you're cash flowing (with some good history), I think you'll be alright.

You might start by poking around @Jay Hinrichs' website which collects investor feedback on turnkey providers: http://turnkey-reviews.com/

This doesn't solve all the roommate issues going on... but might be worth a shot for the drains.  This stuff has worked miracles for me in some rental houses:  https://www.homedepot.com/p/Instant-Power-67-6-oz-Hair-and-Grease-Drain-Opener-1970/100169339

Are you also living in the property as your primary residence?  If not, 25% is not uncommon for an investment property, although some lenders may go lower.  If you are living in it as well, I'm sure you could shop around and find a lender with lower DP requirements.  Depends on the lender and how they see you as a borrower.

It is possible, but it likely depends on who holds the existing loan.  They have to be willing to allow it to be assumed (and it very well may be spelled out in his original loan docs).

Thanks @Matt M., appreciate it!  

Thanks @Ian Whitney!

Make sure you take lots of trips to visit and work on your property out there! :)  I'm sure my wife wouldn't mind if we invested in Hawaii so we could justify more time over there!

Congrats on your first deal, I hope it works out well for you! 

Great post @Chase Jones!  Also, wanted to say, thank you for your service.  I truly appreciate all those who serve.