All Forum Posts by: Dolores Gonzalez

My tenant is a "single mother" with small kids. She has only been there for three months. Her kids father is seen at the apartment often, but she assured me that he doesn't live there and only comes over to help with the kids. I don't believe it. Now he is causing disputes with the other tenants. A neighbor has said that the police have been at the building several times. I've had a conversation with the tenant about her kids father and a few other issues like keeping the common areas tidy and disposing of trash properly. I feel like I need to start documenting everything and send a letter. Any suggestions on how to handle and approach?

https://www.chicagobusiness.co...

So, I purchased a 3 unit apartment building using a HELOC loan. I purchased it under ownership of an LLC for liability purposes and also because I plan to buy a few more rentals in the coming years. The plan was to fix it, rent it and then do a cash out refi to pay back my HELOC (BRRR). There were a few bumps with the fixing part but ultimately, everything seemed to work out except for the refi. I used a residential mortgage broker. Throughout the whole process I was never clearly informed that I would be required to quitclaim the deed into my personal name. After sending the refi docs to my accountant for review, he pointed out that the building was no longer under the LLC ownership and has urged that I get it transferred back. I talked to a real estate attorney and he says I just need to quit claim the building back to the LLC, but I will need the lender's permission. The mortgage broker does not think that is an option and explained that there is no bank that would lend to an LLC and that is why they had to transfer the deed to me personally. I would hate to have to refi again due to the crazy fees. Based on internet research, it seems I could do the quit claim, but risk the lender calling the loan. Also, I saw something about transferring title to a Trust with the LLC being the beneficiary. I really need some advice on what to do to fix this. Also, moving forward what are my lending options if I want to own more property under an LLC? Is there a certain type of attorney or professional that I should be seeking out for help?

@Tim Polk So, there was so much great insight on this post. We just got done renting and refinancing our last project (a 3 unit in Chicago). We are going to start looking for our next deal and decided that both Chicago and Indiana are good options. We are going to follow the advice of the post that suggested that we keep an open mind and pursue an investment as long as the numbers work.

I have been using Smartmove.com to invite tenants to fill out their information to run a credit and background check. The problem is that some of the potential tenants are not internet savvy or don't have access. I cannot enter the information for them because the website asks for additional personal information to verify identity. Can anyone recommend a screening website that will allow me the run the credit/background check with the tenant's name, SSN and birthday which has been provided on the application?

Hello BP,

I own 3 multi-family buildings in Chicago.  I have plans to ramp up my real estate investing.  I would love to acquire another handful of buy and hold rentals over the next few years.  I have also been contemplating aiming to do one or two flips per year.  I am very close to the Indiana border.  Over the last several months I have been seeing a lot of articles about a mass exodus from Illinois to surrounding states due to high property taxes and other factors.  At the same time, I work for a property tax firm, and it seems that there are still many investors that see potential in the Chicago area. Does anyone have any advice as to where i should continue to invest.  I don't think I currently have the access to funds to invest in higher end properties at this point.

Good Morning BP!

We are in the process of renovating a three unit multi family building in Chicago.  The second floor has 3 bedrooms and should rent for $1,200.  The first floor has 2 bedrooms and should rent for $1,000 - $1,100.  The first and second floors are long units with good sized living rooms, dining rooms and kitchens.  The garden unit is in the process of being built out and is shorter.  I'm trying to decide if we should make it a 1 bedroom with a dining room or open kitchen.  Or making it a 2 bedroom with with a small kitchen and no dining area.  Other one bedrooms in the area have asking rents of $750.  I believe that I will still have good cash flow if renting the garden unit for $750, but I don't want to miss out on getting potentially higher rent.  Do you think that the lack of dining area makes a big difference in renters decisions?  How do you think the value of the garden unit will be affected?  Any suggestions would be appreciated.

I spoke with two lenders yesterday that just told me that they don't do delayed financing loans.  I then went on the Freddie Mac website and found a list of multi family lenders.  The first one I heard back from told me that they only lent to bigger multi family properties (more than 6 units).  They told me I needed to find a regular residential lender for a 3 unit building.  I am waiting for responses from other lenders I have reached out to.

Hi BP,

I work at a law firm and specializes in helping property owners to get real estate tax reductions. I have been noticing that some of our clients have been investing in the East Woodlawn neighborhood of Chicago. The neighborhood is a bit rough, but they seem to be speculating future appreciation due to the proposed Obama Library that is planned to be built nearby. For now, these investors seem to be making good returns by fixing the multifamily buildings and renting them out (many via section 8). I've been thinking of purchasing something in the area. I'm sure that I could find a 2 to 4 unit building between $80k and $100k. They'ed likely need up to 100k in renovations. ARV of similar properties averages between $260k and $320k. I only have enough cash from my HELOC to purchase such property, but not to make the repairs. I've been trying to find out more about the a delayed financing loan option in order to quickly get my cash back to make repairs, but have had no luck with the lenders I've contacted so far. Any suggestions on how I could finance a deal like this? Any general input on my action plan would also be greatly appreciated.

Thanks, talking to my CAP tomorrow...