All Forum Posts by: David Dachtera

I don't think networking opportunities are ever wasted unless you choose not to take advantage of them. Even meeting types of people you don't or rarely encounter is an opportunity to learn about them if not from them.

The event itself my not have much to offer to you. It's up to you learn what you can and meet new people.

My $0.02 ...

I looked at the listing on Zillow and really only saw one issue, though it may be a big one.

The description says 2-1/2 car garage. It's fairly well detached from house and not especially convenient. Also, there's no driveway leading up to that garage. The listing pics show a "dual rut" gravel driveway that ends at the rear of the house.

So, from a potential buyer's perspective, they're likely seeing these expenses on top of the acquisition costs: pave the driveway from the curb to garage (low guesstimate: $10k) and possibly add a car port near the back door to the house to make unloading groceries, etc. more convenient.

The description says "Basement: None". However, the pics suggest a crawl space (block foundation) for plumbing, ductwork, etc. This may confuse some potential buyers. May seem like a small thing ... remember: "the confused mind always says 'no'."

State St. is a major artery - lots of traffic, and the yard is not fenced at the moment - not "family friendly". This represents another potential post-acquisition expense.

The room(s) at the front of the house suffer from "big blank wall syndrome". Added windows might have been a good idea (selling point to let light in).

Judging by where Google shows the lot lines, you may want to consider separately selling the parcel where the garage currently stands, build a new attached garage at the rear of the house. Alternately, on the second parcel, you could take that garage down, put up another house with a detached garage to make better use of the land.

I'm not familiar with Cook County's on-line tax system (wonder if there's a GIS for it?). However, I'd want to verify that the tax amount stated in the Zillow listing represents both parcels. If not, that could be a "knock out" factor for potential buyers. Folks aren't hip on the idea of paying taxes for land which sits largely unused or just to provide a place for the garage to stand. Zillow also shows a triangular parcel east of the other two. Not sure about taxes, etc. for that. Might be worth looking into - I did, others might, also.

My $0.02 ...

There's a reason it's called "The Wall Street Casino". :-)  

"How much negative cash flow is too much"?

Anything greater than zero.

Remember:

Appreciation puts $0 in your pocket unless you can borrow it out still not "feed an alligator" (cash flow negatively).

"Investing" for appreciation is NOT investing, it's speculating (read: gambling).

Be VERY clear what you're doing and why BEFORE you do it!

If it was me, hard pass.

My $0.02 ...

Strictly my opinion ...

A house does not become an asset until you either own it free-and-clear or your LTV goes below 50%.

Appreciation improves your equity position and net worth, but has no cash value in and of itself. You cannot spend / invest equity until you convert it to a liability (debt) plus an expense (interest).

Everything else about your primary residence is the same as any other RE investment: liabilities and expenses. It may not fit the financial definition of an asset. Yet, it provides shelter and comfort.

My $0.02 ...

An important point to remember is that if your umbrella policy has to pay out, it means someone took you to court and you lost. Your ENTIRE ESTATE is now exposed and subject to discovery in any subsequent litigation.

May as well post a list of your holdings on a billboard saying, "Come 'n get it!"

My $0.02 ...

This person should be in a specially-equipped medical facility.

The design of a domestic A/C system is intended to maintain a 20 degree difference between the inside and the outside air temp.

30 to 35 degrees or more difference is not a reasonable or realistic expectation.

Perhaps your attorney can suggest how to present this to your tenant. Diplomacy is not my gift.

First guess time:

Folks looking for a 2Br are disappointed that there's only one, even though it has the loft. As a 2nd bedroom, it has no privacy being open the area below. If I were looking specifically for a 2Br, that would be a big "knockout" factor in my mind.

That high ceiling space costs a fortune to heat if any cold weather comes along and stays a while. I didn't see any ceiling fans and while the exposed beams look nice, I don't see how the ceiling is insulated. That means heat loss in cool weather and heat gain in summer. So, you may have design issues. I'm a former HVAC guy; so, my take on it may not represent the average apartment hunter.

Also, the washer being in a closet and the dryer in the kitchen seems a bit bizarre - almost an "Oops!' after-thought.

My $0.02 ...

As other posters have indicated, those numbers are off - WWWAAAYYY off! The numbers you stated work out to a loan amount of $308,357.36 according to my financial calculator. At 80% LTV, your FMV would need to be $385,446.71. You'll want to revisit that with the lender.

My $0.02 ...

Depending where the property is, there are areas of the Country which have experienced drought ranging from unusual to unprecedented. Check whether local watering restrictions have been in  place preventing normal watering of lawns and such.