All Forum Posts by: David VanWinkle

Thank you for responding. It’s in Humboldt Park. I’d appreciate your recommendation. It does have 2 exits.

Hello - I bought a 2 flat this past winter on the west side of Chicago. It is a 2 flat, with a basement unit (3rd unit) that is technically illegal. I believe it is illegal because it doesn't have separate utilities from the first floor. It does have 2 exits and ceilings seem high enough to possibly make it a legal 3rd unit. 

My question is if I were to go through the process to make that unit legal, how easy it is to get something re-zoned? Any resources in Chicago that would help me with this process? Would this be worth it financially? 

Thanks for your time. This is my first Multi-Family so learning as I go. 

@Jay Hinrichs I agree, we do not want too much negative cashflow early. The other two tenants are not Section 8 so I'm not sure if that will make it easier or harder for them to pay the new rent. Thanks for your reply 

Thanks, @Thomas S. 

I can definitely see it being a problem to get them to pay full market price after being at such a discount for so long. 

@Michael Craig this is so helpful. I hadn't thought of just keeping them month to month to see what they are like as a tenant. I'll definitely read up on the my local laws in Chicago to make sure I give them the proper notice if I need to get them out. 

@Brian Garlington Thanks for responding. I hadn't heard of an Estoppel so that is really helpful. I also like the idea of still giving them a deal. 

@Rivy S. Good question. If either one of the tenants leave I will probably do small renovations (2-3k) in each unit, but they are pretty close as is. 

I like your plan. I definitely don't want to units sitting empty for a couple months during the winter. 

I'm about to close on my first multifamily property in 2 weeks! I am buying the property because it is a growing area and current rents in 2 of the 3 units are much lower than they should be, but the catch is that all 3 tenants have been living at the property for 4+ years and don't want to leave. All are month to month on their leases. The main floor is Section 8 and very close to market rate so I plan to keep them. The other two are both playing between $300 and $400 under market value for each unit. 

What do you think is the best strategy is to handle this situation? My plan was to give them until the end of February at their current rent before signing new leases on March 1st with increased rent if they want to stay. Is this being being too lenient or harsh? What could go wrong with my plan that I'm not thinking about because of my inexperience? 

Thanks for your help!

I'm about to close on my first multifamily property in 2 weeks! I am buying the property because it is a growing area and current rents in 2 of the 3 units are much lower than they should be, but the catch is that all 3 tenants have been living at the property for 4+ years and don't want to leave. All are month to month on their leases. The main floor is Section 8 and very close to market rate so I plan to keep them. The other two are both playing between $300 and $400 under market value for each unit. 

What do you think is the best strategy is to handle this situation? My plan was to give them until the end of February at their current rent before signing new leases on March 1st with increased rent if they want to stay. Is this being being too lenient or harsh? What could go wrong with my plan that I'm not thinking about because of my inexperience? 

Thanks for your help!

I'm looking at a couple of properties in Homan Square and South Chicago. Any thoughts on those neighborhoods in general? Any advice would be appreciated.