All Forum Posts by: Max Traveler

Most of what everyone has said here is super accurate. The only thing I'll add is knowing that you plan to house hack it, I also wouldn't wait too long to fix up a unit to start getting some cash flow. It will help offset the cost of everything else.

Also, it sounds like you have 4 floors and only 3 units... if that's correct, I'd look into the city ordinance allowing for an ADU and add a 4th unit. Obviously, it would depend on numerous things, but adding that in to cost right away may be pretty important.

Thanks Brian! yeah.. excellent point on getting the tenants in ASAP. Yes, you are correct on 4 floors, it's a legal 3 so.. I plan on duplex up (3rd floor and attic). Unfortunately, i'm not located in ADU zone.

0 Votes

Chicago, Illinois

Quote from @Jonathan Klemm:

Hey @Max Traveler - Congrats on your purchase brother! I'm sure @Henry Lazerow can definitely lead you in the right direction, he's the man! I am also in the Chicago Logan Square area, we should definitely link up!

What's the overall strategy for the building? Do you have desired ARV you are working towards or increased rent?

When you are getting started I usually think that less can be more, unless you are planning to go all out and have the correct resources.

I think the sequence all depends on how evasive you are willing to get. My opinion would be to get the MEPs (Mechanical, electrical, and plumbing) situated and then work on some more of the cosmetic stuff. Leave the attic for last. Ideally, you do everything at once, but that's not always an option.

Happy to connect and talk through your plan in more detail offline of the forums as well.

Hey Jonathan, Thanks! My overall strategy is to buy-&-hold for now but may 1031 later a few years. I don't have any specific ARV but I do want to repair in a way that my unit is competitive for rent and possible sale in the future. I don't want to go all out on the repair because I want to build up some cash for next deal. I usually buy a property in 12-15 months. I got a HVAC guy assess the property yesterday, he recommends that I go all high efficiency water heater and furnace so that I don't need to vent them through chimney. I am looking for a quote for chimney removal and building the utility closet. I am not sure where is the ideal place to build the Utility closet..any idea? I might want to go tankless but I am not sure it's worth it for future administrative burden (maintenance costs). Let's connect, I will send you PM.

1 Vote

Chicago, Illinois

Quote from @Mark Ainley:

@Max Traveler is the property 100% vacant? Order would depend on that?

@Mark Ainley Only 2 out of 3 units are vacant. Thanks!

0 Votes

Chicago, Illinois

Quote from @Hemang S.:

I recently did a 203K rehab in Chicago on our first house hack (a 3 unit). I'm not an expert in the field, but my perspective could help. Are you house hacking this property or using it purely for investment?

1) @Jonathan Klemm can give you solid info on this.

2) AC is practically a necessity to get top rents nowadays- especially if you plan to MTR or STR in this building. If you are already doing ductwork and soffiting for heating, the cost of adding in AC is worth it. I think the demand for AC will go up as the years continue, so doing the work up front will make your units more attractive for years to come.

3) We kept water heaters in each unit, but made a utility closet to get them out of the kitchen. I've heard tankless water heaters are an option that works well, but I have not experience with it personally. Relocating to the basement would be a great option if you need the space to make a better floor plan in the units. If not, utility closet might be a cheaper and less labor intensive project.

5) Will getting rid of the chimney help in a major way (space, etc.)? If you get high efficiency furnaces (and therefore don't need to vent through a chimney), you can just close off the chimney and have less cost to demo it.

6) In unit washer and dryer are becoming a must for for MTR and STR. If you plan on making a unit STR, then you could do one unit with washer/dryer and the other two units could have a common space for laundry. I use a combo washer/dryer unit that is electric and requires no venting (everything is condensed to water and drained out through regular plumbing). The only issue with the single units doing both jobs is that they spin very fast and cause a lot of vibration if the floor is not sturdy.

8) A duplex up 3/2 or 4/2 could be really nice for LTR, MTR, or STR. If the bedroom sizes come out too small, then I think it is better to keep it 1 bed/1bath in the attic. I think its better to have spacious rooms since renters will pay higher prices for a solid sized bedroom as opposed to two small bedrooms.

Congrats on an amazing property! Do you already have plans and permits, or are you in the start of that process?

Thanks so much! Hemang. I'm house hacking now. I don't have any plan or permit yet but I am not changing the floor plan. maybe move a couple of none loadbearing walls. I will need the floor plan and permit for the attic tho. I'm leaning toward getting the AC and I am definitely getting one for each unit. A couple of questions:

How was the plumbing to put the in-unit laundry combo unit? will you do the combo washer/dryer or conventional ventless washer and dryer?

I think I am just going to have the utility closet because there is a space next to the chimney. it's more cost effective.

0 Votes

Chicago, Illinois

Hello all,

I just purchased a legal 3-unit in Logan Square/Avondale area (Thread). Big kudos to @Henry Lazerow. I’m a bit handy and will like to do as much work as I can because I want to learn and be better.. of course, saving too.

I’m brain storming ideas and your professional feedback is much appreciated.

Property Detail

-Lot: 30x 100 (More spacious than typical 25 footer)
-Units: Basement (2/1), 1st FL (2/1), 2nd FL & Attic (3/2 or 4/2)
-Heater: Single Gas heater each floor and it appears to be in 1930s
-AC: None
-Water Heater: located in the kitchen of each floor except the attic.
-Electric: mostly old wiring, it appears to be split bus panel.
-Chimney: it looks like heater and water heater tank are venting from it.
-No laundry hook-up at all.

Questions:

-Most important question: in which sequence of repairs should I start?
-I plan to put a furnace in each unit which requires the duct work (central air). Should I also get the AC for each unit? Or window AC?
-Should I relocate the 1st FL and 2nd FL water heaters to basement unit? Maybe tankless is an option to create more space?
-Electric panels definitely need to be upgraded. I will obviously ask for electrician’s professional judgment for panel amperage. Should I rewire the whole house?
-I want to remove the Chimney if no venting is needed. Should I keep it?
-I prefer to put in-unit washer and dryer for each unit but at a reasonable cost… is it worth it? Or should I just have the community washer and dryer in the basement unit (this will take away some space in basement unit and in addition to water heater tank relocate there)?
-I think I have asbestos tiles in the kitchen but haven’t tested them yet. Since I am not doing the full gut rehab, should I remove them or tile or plank over it?
-Attic appears to need a full gut rehab. Attic is large enough for 2 bedrooms and 1 bath or should I have a large master room (1 bed and 1 bath). It’s a duplex up so… it could either be 3/2 or 4/2, price variance is about $400 but attic bedrooms will be a bit small.

Sorry for the long post and rookie questions. I truly appreciate your feedback…

0 Votes

Chicago, Illinois

Just reading this... Who bought this house @Henry Lazerow? LOL

0 Votes

Chicago, Illinois

Quote from @Di F.:

Quote from @John Clark:

First, find out what in your area attracts them to your spot. If you can, minimize that.

Second, keep calling the police.

Third, go to court (best with the tenant) on the criminal charges and see if there is some way to have a restraining order entered against the homeless defendants. If entered, that would give the police an excuse to arrest the three and keep them in jail longer.

Fourth, when they're arrested/chased away, can you take their belongings and throw it in the trash?

Thank you and noted all!

The basement and the deck are both covered, especially the way down to the basement has a small area in front of door where an adult can sleep. I guess it is a good spot -- shield from wind, rain, snow, etc.). I've chased the contractor hard enough to make him do the job today. Hopefully this will put an end!

Maybe you should install a temporary motion security video camera and post the no trespassing and you're-being-monitored signs. Also make sure all your doors have multiple locks.

0 Votes

Chicago, Illinois

Hi all,

I hope everyone enjoyed the holidays and Christmas! It's that time of the year again... HOUSE HACKING! This will be my first Chicago property. I successfully house hacked a few properties in California. I am also SUPER excited to get my first BRRRR under my belt in 2023. As you know, it's pretty difficult to BRRRR in California. Any tips will be greatly appreciated it! :)

Can anyone please recommend Real Estate investor friendly residential mortgage broker, appraiser, and/or contractor?

Thanks a million! I don't know about you all but I am feeling the 2023... The great Buffett said.. fearful when others are greedy, and greedy when others are fearful..

2 Votes

Chicago, Illinois

Quote from @Jay Garrison:

Quote from @Max Traveler:

Quote from @Jay Garrison:

Quote from @Paul De Luca:

@Jay Garrison

Good to know they're actually making progress with meter installations! I put myself on the waiting list right after I closed on my unmetered 2-flat.

One of the guys who put the meter in asked me how much I was paying and told me I was going to save a ton.

Does the city give an option to meter each individual unit?

I asked when the workmen came out and they told me no, but maybe if you ask in advance?

Thanks, @Jay Garrison

HEY CHICAGO LANDLORDS, Is it normal for Chicago landlords to eat the water bill? Assuming City won't install a meter for each unit, is there an easy method to pass on the cost to the tenant without prorating based on headcount or SQ footage? I understand that you could embed the water cost in the monthly rent but don't want to show the inflated upfront rate. Any idea?

0 Votes

Chicago, Illinois