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All Forum Posts by: Christopher Malone

Christopher Malone has started 24 posts and replied 175 times.

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

@Timothy Riley - The 2 sump pumps definitely had us scratching our heads in there, but made it work and sealed the 3rd additional catch basin. lol I'm glad that you were still able to find success when the market turned. If you have pictures of how it was before you left, please post them, that would be cool to see. 

Thanks

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

@Eric Slater - You do have to attend a CHA meeting for landlords to get an intorduction to the program, which is required for all first time CHA landlords. Besides that, you would have to be able to pass an inspection. 

Here is how the program works, HUD and CHA (Chicago Housing Authority) enter into a agreement for funding and administration of the program. The applicant signs a voucher with CHA and becomes a voucher holder. CHA and the owner enter into a HAP (Housing Assistance Payment) agreement to establish what the subsidized payments will be. The owner and voucher holder enter into a lease which is no different than you would a non subsidized tenant, and you collect a a portion or majority of your rent from CHA on the 1st of every month and the remaining from your tenant which should also be the 1st of every month.

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

@Eddie T. - Groundfloor did not have to pull my personal credit as they require the property to be in an LLC and they vet the deal. After I transferred the property into my LLC, it took about 2 weeks to close. I did have to pay $500 for a BPO, and I had to pay $250 per draw which was included in each draw request.

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

@Adam M. - Just the pedestal sink, I had to replace the tub. 

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

@Sabrina Trotter - I recommend getting additional quotes if you don't feel comfortable with the price you are being quoted by any of the contractors you are working with. Anything that may pop up outside of the original Scope of Work (Trust me, it happens) that would result in a change order should get at least 3 bids if you do not like the price your GC quoted you. Also, BP is a great place to ask about the cost of something and compare to what you were quoted. Hope this helps.

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

@Alfonso Velazquez - I will be refinancing out of the HML, but I will be doing it with a community bank. I posted the terms of my HML as well.

@Paul Schilling - I will be getting a 30 yr fixed on it within the next month through a local community bank.

@Edward Wodziak - I found it on the MLS and drove the neighborhood for about a month. I received my real estate license prior to this purchase for the purpose of getting in homes and making offers quickly. I would prefer Section 8 over market tenants, but if a more qualified market tenant would have applied first then I would have accepted them as well. Section 8 pays rent through the eviction process and if you are Tier 2 of the excellence program, you get an additional 2 months of rent while the unit is vacant. You can't get that from a market tenant.

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

@Thao Kieu - I posted the contact for the HML I used. I hope this helps.

@James Su - Its located on the south side of Chicago which varies block by block. This property is located in a blue collar neighborhood with little to no crime and pride of ownership in the homes. I did have to replace some of the plumbing and upgrade the electrical from a 60 amp to a 100 amp and redo rerun the electrical for every outlet in the house and garage. 

@Account Closed - I purchased the property using Cash from my Home Equity Line of Credit. Once I owned the property, then i went to Groundfloor and let them know I owned the property free and clear and I only needed the funds to rehab. They gladly took the deal and gave me terms as well.

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

Thank you everyone! I received these questions a few times, so I will answer them here on the thread.

  • My friend/mentor is @Mark Ainley from GC Realty & Development. Mark and his company are great. He has worked with me every step of the way from purchase to now getting the property refinanced. If it wasn't for Mark, I would still be sitting on the sidelines. 
  • My hard money lender is Groundfloor. I have a 12 month term at 9% interest, no monthly payments, no prepayment penalties. Interest and principle are due at the time of refinance or at the end of the 12 month term.   
  • The GC I worked with is @Robert Leach. His company does great work! Him and his team do not cut corners. If something needs to be done, they do it right the first time

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

@Armand Dixon

I have already found a tenant, screened, and filled out the RTA packet. I am currently waiting for my inspection date and rent determination from CHA. 

Post: Recent Chicago Rental Rehab Completed

Christopher MalonePosted
  • Investor
  • Chicago, IL
  • Posts 179
  • Votes 122

Purchase - $28,000

Closing Cost - 2,000

Rehab Cost (Labor, Materials, Utilities) - $40,000

ARV - $95,000 - $105,000

Rent (Section 8) - $1200 - $1250