All Forum Posts by: Forrest Williams

You could also get another cleaner out there, or if the tenant wants to get a specific cleaner you could offer to reimburse them on their choice. That way they can feel more agency over the situation.

CapX, maintenance, and vacancy are too low. I use 5% of gross rent for each, which may seem like a lot, but when the water heater breaks you'll be happy you set it aside.

A general rule of thumb is you want monthly rent to equal 1% of property value. You're at about .7%. Unless this is a super nice unit you can rent for 1500, I would pass on this.

Also, never trust the Zestimate.

Hi Jeff, I did a similar route to you. Started with house hacking, learned a lot, decided I wanted to learn more. I took the agent class and am now a full time real estate agent, after doing it part time for a while. I would echo what people in this thread have said - unless you want to be an agent, it's not worth it. The MLS access is nice, but it costs about 1000 a year and you can get lots of that information freely on the internet. Your agent should send you those listings anyway so you'll get that info for free if you're a client. You'll have plenty of better things to spend your money on if you're house hacking.

House hacking is one of my favorite topics, so feel free to reach out if you have any questions about the process! 

Welcome to the forums! The Chicago group is very supportive to each other, so you're in good hands. Feel free to reach out with any questions or recommendations if you need a contractor, etc.

If you're visiting a property, ask the neighbors what the deal is with the house. Are the owners getting divorced? They may want a quick close and could be open to a lower offer. Was it a meth house? Stay away. 

Check all the facts about the house. Is there an HOA? Do the property taxes have an exemption you won't qualify for? Was there any unpermitted work? Sometimes its worth a call to the city to find out more.

Feel free to reach out if you have more questions!

Get the company back out there to make it right, and ask for pictures. You don't want to get off on the wrong foot with your tenant.

Why not both? Have you considered house hacking? I did it when I was getting started and it was a great experience. You learn a ton about what it takes to manage a house reno, repair, budget, and hire. Single family homes are the way to go. 3 bedroom 2 bathrooms are best, get a couple roommates for it and you'll be set. Or, even better, if you can get a small 2-4 flat and house hack that you'll be golden.

I would stay away from mobile homes. They don't hold their value well, and you still have to pay the rent on the plot you're parked on. And they aren't really that mobile, it can cost up to 20k to move it. If the landlord who owns the plot jacks up the rent 15%, are you going to shell out 20k to move? Your investment can turn into a money pit quickly.

A lot of it is personal preference, but pick something you can use in multiple buildings. As you expand, it will mean one less decision to make for your rentals in the future. I like to keep plank flooring under $3/square foot, since it can run up costs pretty quickly, especially if there's underlayment too. Waterproof or a strong water resistance is good too.

If you are having trouble deciding what looks good, check out rentals currently on the market or ones that have closed recently in the price point you want. What flooring do they use? Try and emulate that.

LLC is the way to go.