All Forum Posts by: Connor O'Brien

That looks like more than $45k to me.  Have a hud contractor walk the property and give you a quote based on your scope of work.  Can't hurt.  

I've done 203k on my primary and it was expensive.  Not many contractors do it so the quotes I got were high

Also,  just thought of this: even if non renewal is not eviction, they still will need to be evicted if they don't leave.  You might put yourself in a situation with an angry tenant refusing to pay rent and waiting for eviction moratorium to be lifted

(j)Notice of Refusal to Renew Rental Agreement. Provided that the landlord has not exercised, or is not in the process of exercising, any of on 5-12-130 (a) — (h) hereof, the landlord shall notify the tenant in writing at least thirty (30) days prior to the stated termination date of the rental agreement of the landlord’s intent either to terminate a month to month tenancy or not to renew an existing rental agreement. If the landlord fails to give the required written notice, the tenant may remain in the dwelling unit for up to sixty (60) days after the date on which such required written notice is given to the tenant, regardless of the termination date specified in the existing rental agreement. During such occupancy, the terms and conditions of the tenancy (including, without limitation, the rental rate) shall be the same as the terms and conditions during the month of tenancy immediately preceding the notice; provided, however, that if rent was waived or abated in the preceding month or months as part of the original rental agreement, the rental amount during such sixty (60) day period shall be at the rate established on the last date that a full rent payment was made.

I agree with Anthony that you have to be very careful right now with covid 19. A lot of ordinances have been proposed in Chicago.  

Also even if you are MTM you still need a lot of written documentation per RLTO - might be easier to make them sign MTM lease. I would check with your lawyer on what is required

In my experience tenants who care about getting things fixed in a timely manner are keepers.  I would be more than happy to credit them 2 days.   i would be more concerned if they told you about heater on the first and said they weren't paying. 

@Andy Lo more people are leaving Chicago for Vancouver every year than the amount of people moving here from Wisconsin/Iowa. Housing supply doesn't decrease therefore you have more supply than demand. 

If I lived in Vancouver I think I would invest somewhere population is increasing. But I'm stuck here so I don't need an exit strategy and I can buy properties like this:

https://www.realtor.com/realestateandhomes-detail/7938-S-Normal-Ave_Chicago_IL_60620_M77172-66436?view=qv

Even though the derivative of population is negative you still have 2.7 million potential renters and if you make this property nice and treat people well you can get amazing tenants. 

There is no exit strategy... I can't flip this property and I'm probably not going to recoup all my costs with a BRRR...

But I can get an amazing return. 

@Andy Lo what are your thoughts? What markets are you looking at? 

Why are you looking at such expensive properties? 

You live in a city with declining population.  This means cash flow!

back of the yards,  cottage grove,  Cicero, berwin. 

Are you looking for appreciation? Scared you won't find good tenants?

Insurance could be more. I use country financial right down the street and pay about that for house built the same year worth about 1/3 as much $. 

Please let us know how this turns out

Mortgage forbearance is part of the proposed stimulus package.  Not sure what payback will look like (lump sum vs investment) but that could be a good option if people miss rent

I echo fodor's comment about taxes.  I'm living in a 4 bedroom apartment and it hurts my right off! 

exit strategy is another thing to think about. Ultimately I want to refi out of my FHA loan into a conconventional loan in my LLC. To do that you need equity even though FHA is low LTV