All Forum Posts by: Chris Carollo

A property that doesn't cash flow positive in a "good market" is only a recipe for trouble when the market changes.  I'd struggle to even call it an investment in fact. I agree with @Thomas S. to only look at properties that can could cashflow with 100% financing even if you chose to finance them. 

What is the agency that posted the Window Signs? City, County, State, Building Inspector?  You could always reach out to the respective agency and see what they have to say. They also might know some building owners that are looking to get rid of their properties. 

I'd just call it a split level. They're are a ton in the SW Suburbs of Chicago. 

Try this google search: split level orland park

Plenty of houses just like it!

I wouldn't personally throw any more money at the property, especially from your own townhouse to make it cash flow. Are you also looking at the Mortgage Paydown and Tax benefits when you run your investment analysis?

If you refinanced to a 30 year now(ideally at a better rate than your 20 year based on current rates) would you be cashflow positive? What if you refinanced your current balance into a new 20 year at today's rates?

I'm not going to get into the LLC vs Personal Name debate but I don't believe you can finance through Freddie, Fannie, FHA, etc through an LLC. Going other routes may lead you to a higher interest rate.

I'd much rather be OVER insured with a large umbrella policy then stay up worrying about it.  Even a couple million dollar policy isn't that terribly expensive.

@Dolores Waldron I think you'll need to start from step 4 if not step 1 for each search you are trying to do. You are using google to get around the paywall that Loopnet has set up and you'll need to manually do it each time for each property. 

Prep very well, TSP possibly then good primer, than paint. It will be bright, clean and look fresh for the next buyer.

Great question and answers.  I would never pay "retail" price for a vacant building.  Can you ask the listing agent for the history or why it's vacant? I'd also inquire with the city or local government for any code violations or history with the property. 

@Peter W.

What if you look at from a different angle? You are investing $450k (30% of $1.5M) for zero cash flow? I'm a big believer in minimizing the interest paid, i actually like shorter term mortgages as I'm less concerned with cashflow at this stage. BUT I think that's a huge $ amount to invest to just break even. 

Is there a substantial interest rate difference? What about a 20 year Note?

If the possible tenant doesn't want to pay the $35 Application fee to mysmartmove then you probably don't want them as a tenant. I've seen it as a way for tenants to "Self Select" themselves out of the process.  Remind them that you are not making a dollar on this.  You could also refund the fee to the tenant who you chose, deducting it from their first month's rent.