All Forum Posts by: David Stefanovic

It depends on how you define solid investment. In the short term with an estimated $50k contract work, mortgage payment, and missing out on rent from living in one unit, there will be no positive cash flow being generated. That's not even taking into consideration other expenses such as utilities. However, in the long term, if you happen to move out and be able to rent out both units, you may be able to at least break even or produce positive cash flow.

I suggest staying in the smaller unit and rent out the larger unit for an amount of rent that will cover your mortgage payment. It sounds like you got a good purchase price at $315k, so hopefully the ARV will bring you appreciated equity down the road. Just my thoughts!

Congrats Brie! Great to hear that you were able to achieve your goal and wish you much continued success!

If it's possible legally and per code to finish a studio or apartment in the basement, then that should increase the value of the multi unit property and create additional cash flow as well. 

Something you may want to consider is hiring an attorney to reduce your property taxes.

I say depends on the relationship you have with your tenants. If it's good and they are trustworthy, then you may just want to have a talk with them to inform them that they are responsible for their guest and any damages or extra costs that may occur. If it's not so good and you feel they can not be trusted, then you definitely should have the guest sign a short term lease agreement.

Thank you to all who responded for your insight!! Very informative. Definitely due diligence is much needed for these type of properties that are being auctioned off online. Thanks!!

What are people's experience with online auctions, specifically with auction.com? What are some of the things that I need to be aware of when placing a bid on a property that is being auctioned off online? My biggest concern is whether or not title on these foreclosed properties have any liens that would transfer over to me if I were to win a bid on a property.

2 bedroom / 1 bath condo with balcony in Jefferson Park (Northwest Chicago). Includes 1 parking space. Rented for $1,250/month. Monthly assessment $245.23 (includes cooking gas, heat, water, building insurance, exterior maintenance). Annual property tax $1,927.22 (2013).

2 bedroom / 2 bath condo with balcony in Mount Prospect (Northwest Suburb). Includes 2 parking spaces. Rented for $1,000/month. Monthly assessment $224.00 (includes water, building insurance, exterior maintenance). Annual property tax $1,627.81 (2013).

Both condos are updated and well maintained and have excellent tenants with leases. Tenants were properly sreened. Never any issues with late or no payment of rent. No other issues with tenants. Well run associations with no special assessments. Condos are in prime locations making it very easy to rent!

Please contact me for additional information and details. Thanks!

Condos are relatively affordable and with no out of unit maintenance can make a good investment property, especially for first time investors. Agreed in that the numbers have to make sense and you need to take into account all expenses. My wife and I own two tenant occupied condos free and clear, and they bring in nice cash flows for us. Location is key too!

I purchased an owner occupied 2 unit building. It was an estate sale, in which I was able to negotiate and get a good price on the building. The building needed a lot of work. Hired a contractor and had both units rehabbed. I lived on the top unit and rented out the bottom unit. It was great! Lived in a updated unit and lived on the premise to manage the property and collect rent from my other unit. Very convenient and learned what it took to manage a rental property. I eventually moved out of the top floor and now have both units rented out that produces me a positive cash flow after all expenses.