All Forum Posts by: Faraz Tariq

Thanks @Andrew Holmes, I appreciate the contact and will keep them in mind.

@Anuj Ansal For sewer back-up through floor drains, you generally have two options.  There are others but they may not be as effective.  Either overhead sewers or an exterior check valve as you indicated.  

As you are vetting contractors, I'd recommending trying to understand what product they will be using.  Ideally you'd use 2-3 check valves in series as this helps if one of the valves is partially or fully open due to debris or waste.  When installed in series, you have the ability for the other valve to come into play and act as a fail safe.  

Additionally, some contractors will also install an ejector pump to pump waste from the property over and above the check valves back into the sewer line as once the check valve is activated, the waste from the property is unable to leave and go into the main sewer line until the blockage is resolved.

Although, I can't personally recommend one specific contractor, I've read good things about The Real Seal, although they may only work on another drainage options (i.e. drain tile).  You could also check out Permaseal.  

@Will Fraser Thanks, Will.  As I understand, it's actually a bit unique in Cook as it's not a straight line of comparable sales, or I should say, what's considered a comparable sale is not what I consider a comparable sale from a purchase price perspective.  

@John Warren Yes, that article would be great!  I was debating on text you but thought I've contacted you plenty in the last year for help!

@Brie Schmidt Thanks, Brie.  I completely agree with you as personally, I would want someone to give me the worst possible case and let me decide from there.  The challenge I see with a newer homebuyer is that because they don't understand the process, they immediately think the worst will occur.  I was hoping to provide them with a worst case and a likely case, theoretically, emphasizing that we won't have an exact figure until a later time.  

@Jayden Hamilton Did they damage the door to cause it to not close properly?  If not and it was due to normal wear and tear, you should complete the repair out of your own pocket.  

Hi all –

Looking for some recommendations on how you are estimating future property taxes on rehabbed properties. I have a client I am working with who is interested solely in purchasing recently rehabbed SFH as a primary.

For example, one home we are reviewing is in Elmwood Park and slated for reassessment in 2022. It was purchased in May of 2020 for $175K and it is now listed for $490K.

The 2nd installment of 2019 indicates the Property Value at $248,460.

After reviewing the detail that goes into the AV calculation, it explicitly states that property condition and interior features (i.e. amenities) are excluded. 

What safe assumptions (if any) can I make for what the 2022 FMV and AV will be? This particular renovation did not alter sq footage and was just a gut rehab.

@Julie Berks This is a great informative post and would make an excellent blog post - you should start a blog!  I had a similar experience last year and I completely agree that you need a space that is not being touched by the renovation, otherwise it truthfully feels like you're living in a disaster zone.  

Having a firm SOW is crucial to ensure the project can stay close to being on time and on budget.

Additionally, your point on the why is spot on.  After all, if you don't know the why, then what's the point?  Even if the why has changed and you decided you will no longer pursue live in flips, you've established that while accumulating a wealth of knowledge on the process (whether you wanted to learn it or not).  

Is the property near a large water source?  Properties near large water sources can have a high water table which makes them much more susceptible to seepage.  

Are you in a densely populated area with lots adjacent to each other?

What was the alternative method that the other contractor indicated?

As I mentioned above, there are many variables that can be apart of water being seen in the basement.  

At a high level, you have a handful of options:

- Exterior drain tile, which is many times cost prohibitive if you are in a dense area as it involves digging a trench around the entire foundation of the property then installing crushed gravel, perforated PVC pipe covered with fabric to prevent other debris from entering.  This all drains into a basin which is then pumped away from the property

- Interior drain tile which is likely what the contractor recommended.  This is a more reactive approach as you're not solving the source of the issue and instead addressing the problem.  That said, when installed & maintained correctly, this can be very helpful.

Other options exists, but really only apply if you were having water backing up into the property (backwater valves, overhead sewers, etc.).  

@Isaac Gwin Sounds like a challenging situation.  It's unfortunate that is a lease isn't in place as it would (or should) have addressed this very situation.  For a point of reference, in Chicago, a common lease used by many specifically states that unless agreed to in writing no person may occupy the premises for a single two week period during any single year of the lease term unless listed on the application.  

Generally speaking, many landlords will look the other way assuming it's a minor offense.  Although, on the flipside, what if this individual causes trouble, damage, etc.?  It does have the possibility to become a tricky situation, quickly.  

@Andrew S. Can't say I am familiar with the list you are referencing on the HUD website. Generally speaking, FHA approval will apply to you as well as the condo building at large.

Regarding the lender (i.e. you), there will be stipulations around your credit score, debt to income (DTI), must be a primary residence, etc. As far as the building goes, there are rules surrounding how many units are owner occupied, how many units are owned by only one individual/principal, insurance and cash reserve minimums, etc.

If your local market is hot for condos, it may make closing on a condo via FHA a bit challenging as they tend to take longer to close vs conventional loans.

@Nick Winikoff Basement leaks can be a bit tricky and may/can have many culprits.  Before you venture down the path of installing an interior drain tile and sump pump set-up, I'd review the exterior of the property.  

Do you have any grading issues in which excess water may be running towards the foundation?

What is the condition of your gutters and are the downspouts moving water away from your property?

Are you aware if any other fellow owners in the area have indicated water seeping into their property as well?