All Forum Posts by: Frank S.

If you watch a few videos,  it will be very hard to mess it up. Keep it flat,  below the concrete filler, wrap it, use a settling basin,  and a good pump. Done, you made 10k in a weekend. 

Thanks a lot. I was told about salvage materials shops and Wood World in Chicago, too.  I also like the idea of buying the toys to make them.

Hi Daniel, 

It seems you are passionate about those great details.  That's fun.  

I restored one of my rental buildings woodwork and although it was  very, very time consuming,  I loved the finished product. 

This will be for my own home, so it's not urgent nor contingent on price (I hope). Fortunately,  the place has most of the original woodwork and my goal is too match those as we renovate (modern/new mix) .  I'll look for a mill, thanks for the tip.  I  even thought about taking the trim from my rental building.

Howdy, 

Any ideas where I can buy salvaged or custom make these trim pieces? They are from typical Chicago two-flats, circa 1900.

Thanks,

What do I know? I am assuming a teardown. In my area, North Center, $600K -$700K is teardown price for a 1.6M SFH new construction. I assumed at $800K, the rehab must be a little nicer to get more money out. There are many flippers and rehabbers in the area. I've been quoted $350K to $450K for a full gut job of a typical two-flat, 8 months process. However, this is for my own home, so you big shots probably get better prices.

It's not hard. I made some upgrades to increase the appraisal, create a list of upgrades and hand it to the appraiser, aim high, prepare your comps. You have 6 months to do delayed financing, after that you need to wait one year. Talk to a few lenders about rates and LTV. Then, wash, rinse, repeat, if the market cooperates.

It's based on similar properties and condition.  It doesn't matter if you don't use the libraries, parks, or schools.

If not habitable, you will get as break.  (I call it the Pritzker technique).

Use an attorney - google. They charge 30% of savings. 

 This is very true. Proper ventilation and respirators are required. It dries fast, walk able within 24 hours. 

Curiously, I thought about the following exist strategies before buying in North Center.

If you need the cash, sell.  If so, I would sell it by owner or use a low cost brokerage like Redfin. We bought our house from a sign on the front lawn without agents.

Recall you paid 50% of the original commission, the fee is an intrinsic part of the purchase value and not paid by the seller, as they say. I would try to lower the overall transaction costs somehow. 

If you don't need the cash, buy yourself time to figure it out. You are also making money in amortization and tax shelter to soften the negative cash flow.  You could look into hiring an AirBnB management company or set up a corporate rental for a few years.   You will make more money than renting the unit. 

You could also partner with a developer and flip it.  Although, at $800K purchase you will need a +- 2M rehab. Talk to a developer in the area, look at the high flips in the area or deconversions, call the agent and get the developer's name.  They may give you a cash offer.

Good luck, 

Frank 

Update: I just notice you didn't put 20% down, so you will always have to pay out of pocket.  I would be more inclined to keep it as a corporate rental or Airbnb for a while in that case.

 

The "best" floor is to use the original hardwood floors and refinish them.  You can sand it or go "passive/chemical.  Then, use heavy duty finish or synteko.

It all depends what you want.