All Forum Posts by: Chris Wange

Hey @Miguel Castillo.  What are the rules in Aurora regarding shared housing?  I was speaking to another investor from Aurora last week regarding this, and he said the city does not allow this.  Have you had a different experience?

Thanks,

Chris

Hi @Vishal P.  I have a rental townhome in both Aurora and Naperville.  Aurora is much stricter than Naperville with landlords.  We were actually supposed to have a follow up inspection today at the Aurora home, but that has been postponed.  We've rented that home out for 7 years now, and I want to say we've had maybe 3 inspections during that time.  There is an annual fee though regardless of if you get inspected or not.  There is also an Aurora crime free agreement that has to be signed by the tenant and showed to the inspector.  I have the tenant in Naperville sign one too, but I don't think I've ever needed to give it to anyone.  A license or inspection is not required in Naperville, but they have a landlord "class" at the police department.  It's been four years since I took it, but I don't think that was a requirement either.

Chris

Hi @Thomas Peddle.  I've recently had luck with Top Notch Remodeling in Plainfield.  I found them on Angie's List, and they did some repair work in one of our rental townhomes a month ago.  The owner, Michael, said they currently work with several investors, and I plan on working with them again for my next project.

Thanks @John Leavelle.

1. I am assuming I will be using LOC funds to purchase and rehab the property. But I would think that a private money loan would be entered the same in the calculator. Did I do this correctly?

2.  Thanks for the rehab estimate suggestion.  I've gone through that before (and with a much worse timeline!) on a repair in one of our current rentals.  So it's a good thing to be conservative about!

3.  Yeah, it's strange why I wouldn't have just pulled out all of my money with the refi when it's that close.  I'm not sure why I entered the number I did.  I also tried to be conservative with the rate since it was more expensive for me to refinance an investment property vs. owner occupied in the past.  But I should qualify for the best rate available.

4. So the holding costs were listed in the calculator, but is that something that just decreases the ROI percentage? It seems like your suggestion of adding them to the rehab budget would be a good idea though. I did not, but I tried to budget high from the pictures I saw.

While this is a real house for sale, I'm trying to use this to practice finding out where my calculation flaws may be.  Maybe I'll turn it into an actual purchase, and maybe not.  Thank you again in helping me figure out things I'm overlooking.

Thank you John for the thorough reply. I realize now how incomplete my information was in order to get it analyzed. Yes, this is a single family residence. I'd like to use either private money or LOC funds to purchase and do some light rehab. I was figuring 8% would be the approximate rate for either of those. Then after any seasoning period I would get a conventional loan and pay back the initial loan.

I am getting comps from my agent to get a better idea of the ARV. I was trying to be conservative in my numbers, but after doing a quick sold comp search myself it looks to be way off. The actual ARV is probably closer to $120k. I'm still learning this stuff, but I did a poor job of inputting the numbers to get it properly analyzed. So feel free to smack me upside the head as I already have!

I think I did a better job this time around and modified my numbers. The COC is much better, but the CF is not as good.

New report

Thanks again!

Hey @Carl King!  Just wanted to introduce myself as a fellow n00b in the area.  It looks like we are both looking to educate ourselves at the moment before jumping in.  In what types of properties are you interested in investing?

Chris

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hi everyone!  So I just became a Pro member today, and I'm hoping to get some more expert opinions on a property I found.  The numbers seem to line up so I'm curious if someone more experienced could see a hole in my calculations.  Very thankful for any help and advice you can give!

Chris

Thanks Michael!  I'd love to talk with you about your experiences and learn more from you.  I'll be in touch offline so we can exchange info!

Thanks Ed!  I would definitely be interested to chatting with you sometime.  It will be helpful to know more about lending options.  As I get more educated and move a bit closer to searching for deals I'll give you a call.

Hey everyone!  I'm really glad I found this forum, and wish I found it sooner, because I'm sure it's going to be hugely educational.  My wife and I currently manage 2 townhome rentals in the area, and they are both our former primary residences.  I bought mine new in 2000 and started renting it in 2014.  She bought hers in 2006 (I know, great timing!), and we started renting that out in 2011.  We've been fortunate to have great renters so far and in the next couple months will be signing two year leases for both!

I've been strongly considering investing in multi-family housing as of late.  We both have secure, decent paying jobs so I definitely am not going to rush into things.  I have done the majority of the management of our current properties and would consider leaving my job to do this full-time if it pans out.  I'd like to (at least starting out) stick to the area before possibly branching out elsewhere.  Right now, I'm just trying to edumacate myself as much as I can about the proper investing terminology and how to analyze deals.  I'm also going to talk to a couple small banks and credit unions in the area about what types of loans they could offer and what is required of me.

Is there anything else people have found helpful (or wish they had learned) before starting to scale?

Thanks, and I look forward to meeting people and filling my brain with this stuff!

Chris Wange