All Forum Posts by: Brie Schmidt

@Yents Ybrimovic A few things...

* FHA loans require both parties to owner occupy for 1 year

* A 203k loan is not a first time buyer program, you can own a home and still use the program as long as you live there

* The loan must be made to a person, not an entity.  So you could form a partnership but it would not be allowed to purchase the property, so you will not be fully protected legally

I agree with @John Warren I started in Chicago and expanded to Milwaukee cause the returns were better.  They were but the headaches were not worth it, I sold almost all my properties there and wish I would have spent that money in Chicago. 

I agree with Jonathan and would have your building checked for leaks.  My husband is "quirky" and needs to run the faucet for at least 5 minutes every time he wants a glass of water.  He often walks away to do something and forgets and the water has ben running for 10 minutes.  Plus we have two kids and fill the bathtub multiple times a week and our water bill is nowhere close to that high.  Having been a landlord in Chicago for 13+ years that high of usage has to be a leak or running toilet all day every day

@Jared Appel - luckily we have a very strong investor community here in Chicago and lots of options.  Have you thought about what kind of investing you want to do?  What areas?  Once you have a general idea I can help point you in the right direction to people that can help

@Don Aleshire - They use the income reported on your tax returns. So 96,120 gross income lets say 10% expenses (they will add back in depreciation, taxes and insurance) = $7,209 a month x 45% = $3,244 will be your max PITI payment allowed

I have a fantastic lender referral, @Sam Sharp, who is also an investor himself.  Happy to send you an intro.  Rates right now aren't great so you won't benefit much from a refi but Sam can take a look and possibly suggest changes to make so that when rates do come down you are in a position for refi

 It is easier to sell it vacant 

Yea we are expecting someone to sue for restricting property owners rights.  This is basically only in 2 wards and the alderman have the ability to make zoning and land use decisions for their specific ward, but the whole thing is counterproductive.  

The right of first refusal, while I do not oppose that in general, was set up in a way that will cause landlords to vacate their buildings before listing to avoid having to go through the uncertainty and months of limbo with tenants.  It will be so much easier to let all your leases go MTM and give notice to vacate then list and avoid all this, which does the exact opposite of what the ordinance is trying to accomplish.  And if they use public funds the property has to remain affordable housing for THIRTY YEARS which is insane. They will have to sell it for a loss cause nobody in their right mind will buy that 

The increased developer fees is only going to impact the seller, because they are the ones paying for it. People who sell to developers have properties in disrepair that they cannot afford to maintain. Developers will not acquire a property that does not meet their minimum ROI, so the only way for them to buy it is if the seller sells it for less. And many times these properties cost more to fix up than to tear down and rebuild. So they will end up losing them in foreclosure and get nothing

It's stupid really.  I fully support almost everything about being a landlord inn Chicago and have zero issues with anything in the RLTO but this is just ridiculous.  It's like whoever created this has only experienced life from a textbook and has no basic understanding of real life and basic business principles. 

@Petar Stojanovski - I have no ability to open a dispute, they completely shut me down and I can't do anything from my account

Update for Chicago investors : 

As of right now the ordinance takes effect 11/9 but any property under contract before then is exempt. CAR met with them last week and are attempting to get an extension till April but no word on that yet. Here is an update : https://chicagorealtor.com/advocacy/advocacy-resources/northwest-housing-preservation-ordinance-issue-summary/

The DOH has posted the forms required to be in compliance with the ordinance which means any properties not under contract by 11/9 will need to be pulled off the market and 30-60 days notice must be provided before listing.  

https://www.chicago.gov/city/en/depts/doh/provdrs/developers...

@Don Aleshire - conventional lenders do not require W2 income, they require a 45% DTI based on the income you reported on your tax return (last two years average)