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All Forum Posts by: Dannielle Givens

Dannielle Givens has started 5 posts and replied 17 times.

Post: Are you lowering your rents for new tenants?

Dannielle GivensPosted
  • Chicago, IL
  • Posts 17
  • Votes 9

That makes sense. Thanks Alan!

Post: Are you lowering your rents for new tenants?

Dannielle GivensPosted
  • Chicago, IL
  • Posts 17
  • Votes 9

Hey BP Chicago Fam, 

I recently read this article on redfin and wanted to get feedback from those more experienced than myself. The article basically states that asking rental prices have seen a decrease and areas such as Chicago and Houston, TX are at the top of the list when experiencing a reduction in asking rent prices. 

When running my numbers for a house hack, my sheet accounts for a 3.5% increase year over year for rents to keep up with rising expenses. For those currently owning rentals, have you experienced difficulties increasing your rental rates? Have you adjusted your formulas to account for a lack of increase within the next, let's say 2-3 years?

I'm looking to understand how to accommodate for this information (or if I need to at all) when determining if a property will cash flow within a certain period of time. 

Quote from @Paul De Luca:

@Ryan Thomson - thanks for the tag!

@Dannielle Givens - I haven't heard of a property sitting on the back of the lot negatively impacting the value, although I'm sure it's a variable the appraiser considers. But the fact that it's on an oversized lot should be a net positive. Some people prefer a large front yard too! 

On the flip side, having little to no front yard could be viewed  as a negative since you're closer to the street and might be dealing with more noise. Depends on the person.


 Thanks Paul! This was definitely helpful. It's definitely different compared to its neighbors, but I wasn't seeing a link between the home's position on the lot and value. I am waiting on the lender's response as to why she gave that feedback, but until then I thought I'd reach out to those more knowledgeable than myself. 

Quote from @Carlos Ptriawan:
Quote from @Dannielle Givens:

Hey BP Chicago Fam, 

my husband and I are currently looking for a home to house hack that will be cash flow positive at least by year 2 of us living there (we expect to relocate back to Florida in year 2 or 3). We found this 3 flat in Bridgeport that sits on an oversized lot, but it sits at the back of the lot. It's almost like the property has a huge front yard prior to entering the home. 


When speaking with our lender, they alluded that where the home sits on the lot, it would impact the value of the home (assuming this would be less attractive). Does this sound about right? It is less attractive to have the home sit at the back of the lot vs. the front providing, let's say, more privacy for tenants and families?


 Well... it's very house specific. What you can do is examine the comps/previous sale of that house and compare it to the neighbor, is the trend the same? is the PSF the same? if yes then you have no issue. However, a house like that may attract a different kind of buyer though, maybe someone that prefers more privacy.


 This is a great suggestion. Thank you!

Quote from @Ryan Thomson:

Also @Dannielle Givens I would consider connecting with @Paul De Luca he works with house hackers in Chicago


 Thanks for the referral. The other homes in the neighborhood are located at the top of the lot (actually the neighboring homes take up almost the entire lot). 

Quote from @Colleen F.:

@Dannielle Givens not sure about your area but a busy street, big front yard is a positive. Depends on what you back up against. One factor in a triplex is where is the parking.   


 The parking is directly behind the property. It's a parking pad for two cars. 

Hey BP Chicago Fam, 

my husband and I are currently looking for a home to house hack that will be cash flow positive at least by year 2 of us living there (we expect to relocate back to Florida in year 2 or 3). We found this 3 flat in Bridgeport that sits on an oversized lot, but it sits at the back of the lot. It's almost like the property has a huge front yard prior to entering the home. 


When speaking with our lender, they alluded that where the home sits on the lot, it would impact the value of the home (assuming this would be less attractive). Does this sound about right? It is less attractive to have the home sit at the back of the lot vs. the front providing, let's say, more privacy for tenants and families?

I will say, the owner has had the property since 2015. In the two years of living next to it, nothing has happened. Not to say it won't, but I'm curious to know why wouldn't an organization develop by now. It's in a really great spot. 

Hi Caleb, 

great questions:

  • Based on the images I've seen of the interior of the actual home sitting on the property: ABSOLUTELY NOT WORTH SAVING. It looks pretty horrific. The property wasn't kept very well at all. 
  • I did find the zoning. It is currently an RM6 ( Residential multi-unit) which will allow for moderate to high density for occupancy. Thankfully this zoning also allows single family homes so to my knowledge I don't believe I would need to rezone it (in my dream world where everything works out and I can purchase this land)
  • I don't have $600,000 lying around, but I would love to inquire more on the question. 

Thank you Brian, 

I was able to find the owner and I believe this individual is paying their taxes from what I've found thus far. What I did learn within the last few hours:

  • Owner run a real estate organization
  • recent deals from this organization (property purchases) run a high of $2Million (so I'm going to be battle a Goliath)

I am currently researching the property to see how it is currently zoned. If my research is of any indication, the owner might be looking to turn this land into a development site for a condo. Any thoughts and suggestions on that?