All Forum Posts by: Blaine Kosek

@Cole Simpson

Thanks Cole. I do agree with you, and I am hoping to scale more this year.

Thanks

@Whitney Hutten

Thanks Whitney, I am trying to scale a bit... which is what brings me to this conundrum.

Finding the right multi unit right now has been quite the challenge.

@Paul De Luca

Thanks Paul,

Most of our single family homes are in Downers Grove, Naperville, Plainfield. This duplex I’m considering is a little outside our typical area, in DeKalb where rents are significantly lower, but because it’s a duplex it evens out.

Side by side duplex in a B/C+ neighborhood with minimal appreciation projection. 160k purchase price, minimal current repairs needed

Single family home in an A/B+ neighborhood with expected appreciation. 160k purchase price - 15k-20k repairs needed.

Cash flow is nearly the same for both.

Which would you choose?

I have a number of single family homes and I’ve been looking to move into multi family but when I run the numbers... cash flow seems to be nearly the same but appreciation is lacking in the multi family.

Looking for insight here

Thanks in advance.

thanks @Ronald Isgate

I appreciate your input. This is a tricky one.

Thanks

I feel like these are my only options for this property I’m considering in Southwest Chicagoland.

Looking for help with this decision or any other suggestions.

Deal:

3BR 2 Bath home B+ neighborhood - ARV 190-215k

Owner inherited the property from her grandfather and there is a mortgage of about 85k still on the loan she’s hoping to make 15k. Almost in foreclosure.

100k to buy and 35-50k for rehab.

The grandfather was a hoarder and had dementia. The house is filled with garbage, needs a complete rehab of the kitchen, baths, flooring, exterior paint, landscaping, roof and mechanicals but he demoed most of it already.

Problems

Not sure if “subject to” will cause the bank to pull the due on sale clause because the mortgage holder is deceased.

Hard money

May be difficult to get because I’m a fairly new investor with just a few deals to date.

Wholesale it - I’m a real estate agent with some investors who may buy it but the numbers are getting really tight.

Thoughts?

Very true Joe,

Illinois, and Cook county in general, already has tenants friendly laws in place and many tenants are trying to take advantage even more so now with the pandemic and the eviction ban.

I drafted a letter for my tenants, similar to the one here on BP, to explain the pandemic situation and its effect on landlords and tenants, and responsibilities of each.

I also am letting my tenants know that if they lose their job or have hardship due to the virus they need to fill out an application, that I created, to verify the hardship. 

As I’m sure everyone is, I’m hoping this pandemic all goes away soon!

Thanks Everyone for your quick responses and your valuable input. It is much appreciated!

Thanks @Michael J Scanlon that’s exactly what I did. I met with them in person to discuss the situation. It did seem that they had felt that maybe I was off the hook on the mortgage, which I explained that I’m not, and they paid up on the spot.

I do feel they will be good tenants as I bet my tenants pretty well. Obviously this pandemic is causing many things to be a little bit more challenging.

Thanks for your input!

Thanks @Connor Anderson

I definitely plan to do a formal credit report like I would for all of my tenants. I know he filed bankruptcy last year so...

Thanks for your input!!