All Forum Posts by: Frank S.

1.  So far so good.

2. Yes. I wouldn't do it if you don't have to.  Wall units work fine, get one in the kitchen and one in the living room, done.  They smaller houses have two chimneys, connect the exhaust there. 

Cost for a small 2/1 could look like this

$2800 to 3500 for furnace and duct, it depends if you want it sealed, spiral, rectangular,  unit efficiency, etc.

$300 for electrical run

$50 for CO/smoke detector

$300 for gas

$600 to build new closet for furnace door, framing, drywall, etc.

$800 to provide new soffits, you don't have to do this. 

Add a considerable markup for permits and licensed contractors.   I have a great HVAC guy if you need one. 

Frank

Hi @Dan S.

Inspectors are to share the liability. Personally, I think their reports are useless, but for $400 is not a big deal.  The reports are too vague without clear direction, market prices, code issues, etc.  I used a few and can't recommend anyone.  So, get one from here:

https://nachichicago.org/

You will have to do a lot of research and work in order to building a construction team.  It's not easy. Craigslist, Angie's list, home depot, etc.  There are a lot of things to consider  and you need to find someone  you trust. That's 90% of the battle.   Do you speak Spanish?  A lot of people I used only spoke Spanish. 

I have MF in the area and it's working fine.  I expect a lot of turnover for the units are getting above market rents because we fixed to above market levels. 

The market everywhere is tight and there is a lot of competition.  Also, I read you are considering "gentrification" - or appreciation.  I don't see that happening any time soon, the area has a very strong sense of community and has virtual barriers that separate it from the rest of the city. This is not Pilsen.    I will get a couple more units, but only for the right price.   I'm also exploring McKinky Park and Brighton Park.  

I'll gladly connect with you, good luck, 

Frank

@John Warren,  They should be passing the savings.  Perhaps, consider having an outline specification indicating a Base Bid and Additive or Deductive Alternate price to reflect different products.   Without a specification, the contractor is given freedom to select anything they want.  They will assume and bid the most expensive and cut all possible corners at the end. 

2" CU, Type L, DW: $100

2" CPVC, Sch. 80:     $40

@John Weidner,   I hear your pain.  The code review process can be painful.   On my W2 job, we typically send the underground package ahead of schedule to obtain permits.   Later on, some modifications take place, but we have already obtained a permit.  Then, we submit the remaining floors.   However, this is for healthcare projects.  

I think this pilot program could help people who already own a building and are planning on a renovation.  It may work on new construction depending on the volume and schedule.   I hope this is a proactive response to the need to use different materials, like PEX. 

Chicago Plumbing Code Pilot Program - Use of CPVC for Domestic Water and Drainage/Vent Systems

Chicago is known for having very stringent construction code requirements. Some are very archaic, like the use of hub and spigot cast iron piping with lead and oakum joints in waste and vent systems. Chicago is the only city in the Nation that has this requirement.

The information below describes a recent pilot program that allows the use of CPVC piping on New construction residential buildings, no more than four stories in height; or any existing building (pre 2010) no more than four stories in height, including additions.

This is an interesting opportunity to save on materials and installation costs in Chicago.

The pilot program will accept requests form October 11, 2017 through March 31, 2018. Requests can be submitted in person or through email.  The associated information is below.

Alternative Code Approval

https://www.cityofchicago.org/city/en/depts/bldgs/...

Code Memorandum

https://www.cityofchicago.org/content/dam/city/dep...

Alternative Code Approval Request: CPVC for Water Distribution Pipe - Pilot Program

https://www.cityofchicago.org/content/dam/city/dep...

Alternative Code Approval Request: Drainage and Vent Pipe and Fittings - Pilot Program

https://www.cityofchicago.org/content/dam/city/dep...

Good luck and happy savings!

Frank

Thanks to all for the feedback! There are great product recommendations. 

The place has dual exterior storm windows. Those can be removed from the interior.  I notified the tenant to confirm storm windows were in place; then, I sent product recommendations.  I think he forgot to install the bedroom bottom one. 

After some soul searching, we decided to not buy any additional products and to not install them, either. It's up to them to do this.  I don't want to create more work /cost for us.  So far,  they haven't complained. 

Thanks again, 

Frank

HI BP Nation, 

How do you handle old drafty windows?

This is tricky, for I can't assure to completely seal the old windows. Maybe I can offer to pay for some materials. I would gladly pay for something like this:

https://www.amazon.com/3M-Indoor-Window-Insulator-5-Window/dp/B00002NCJI/ref=sr_1_2?ie=UTF8&qid=1389974208&sr=8-2&keywords=window+insulation+film&tag=apartmentth0a-20

What have you done with your tenants living in vintage places?

Thanks, 

Frank

Hi there, 

I think is important to keep in mind the time when they were recorded. You will notice differences in the market as you navigate through the podcasts.

Always, be skeptical, critical, and contrarian. Double check the data. 

People like stories. Stories last longer than data, and after while, we tend to fill in the blanks to comply with our world view. Fighting our innate irrationality is very difficult.

I listened them on my phone and saved some of the best to listen again later.  Here is my list, although, there are many, many other good ones. In no particular order:

BiggerPockets Podcast 248: From Shop Teacher to Multifamily Syndicator with Todd Dexheimer

BiggerPockets Podcast 163: Making Your Real Estate Business Soar While Working a Full-Time Job with Bill Allen

BiggerPockets Podcast 165: Limiting Beliefs That Hold You Back From Incredible Wealth with Natali Morris

"BiggerPockets Podcast 179: Doing the “Impossible” by Buying 100+ Units in His First Two Years with Dale Hensel

"

"BiggerPockets Podcast 182: 674 Multifamily Units in Three Years with Jake & Gino – [Corrected]

"

"BiggerPockets Podcast 200: A Step-by-Step Guide to Buying Your First Real Estate Investment

"

"BiggerPockets Podcast 201: Flipping 100+ “Zombie” Houses with Justin Stamper

"

"BiggerPockets Podcast 217: How to Work Less and Earn More Using the 80/20 Rule with Perry Marshall

"

"BiggerPockets Podcast 223: How to Become “Set for Life” Through House Hacking, Frugality, and Maximizing Your Income with Scott Trench

"

"BiggerPockets Podcast 225: Surviving a Real Estate Crash and Investing Out-of-State with Kathy Fettke

"

"BiggerPockets Podcast 077: Negotiating Your Way to 1000 Wholetail Real Estate Deals with Michael Quarles

"

BiggerPockets Podcast 008: Learning to Be a Profitable but Ethical Landlord with Al Williamson

One of my favorites.

BiggerPockets Podcast 004: Commercial Real Estate Investing With Frank Gallinelli

Great book.

"BiggerPockets Podcast 100: The 1st Deal, Management Drama, and the Birth of BiggerPockets with Joshua Dorkin

Probably, the best story in REI.

BiggerPockets Podcast 057: An Introduction to Investing in Vacation Rental Properties with Matt Landau

Long term goal in Costa Rica.

BiggerPockets Podcast 049: Real Estate Tax Tips, Jokes, and Loopholes With Amanda Han

You must know the taxes, you must.

BiggerPockets Podcast 072: Managing Hundreds of Tenants and Getting Uncle Sam to Pay the Rent with Mark Ainley

Chicago investor.

BiggerPockets Podcast 077: Negotiating Your Way to 1000 Wholetail Real Estate Deals with Michael Quarles

A master of negotiations.

BiggerPockets Podcast 063: Automating Your Investing, Long Distance Rehabs and Spec Building with J Scott

An icon in REI

BiggerPockets Podcast 088: Investing with Your Spouse, Managing Financials, and Growing Your Team with Matt and Liz Faircloth

It takes two to tango

BiggerPockets Podcast 087: How to Thrive After The Collapse of a Real Estate Empire with Nathan Brooks

BP should have more collapse stories. This can be dangerous.

BiggerPockets Podcast 132: How Brie Schmidt Grew 50 Units in 1 Year

Chicago community leader

BiggerPockets Podcast 129: Live-in Flips, Frugality, and Finance with Mindy Jensen

Frugality rocks

BiggerPockets Podcast 155: From Zero to 200+ Deals in Five Years with Sharad Mehta

This one has great nuggets of info. He has a solid financial perspective.

BiggerPockets Podcast 217: How to Work Less and Earn More Using the 80/20 Rule with Perry Marshall

I have to look at the numbers again. It reminds me of fractals.

I am looking forward to listening to more great podcast. Great job!

How about contacting Robert J. Shiller, "Irrational Exuberance" author, and creator of the Case-Schiller Home Price Index?  

Best,

Frank

Hi, 

Well, it took me over a year, but I finally finished all podcasts. I would like to thank BP for the high quality information provided. This is why BP is the REI source available.

The amount of work required to schedule, book, record, edit, and broadcast them is  exponentially "amazing"  - like our host and co-host often say.

This allowed me to diversify in REI after learning very valuable lessons in negotiation, management, value-added, integrity, and encouragement. What a great motivational tool, too.

From the bottom of my heart, @Brandon Turner@Joshua Dorkin , et al.,  I thank you for your hard work, for my family reaps the benefit of a solid purchase last year. 

Wishing you a continuous success, 

Frank

Thanks a lot. I appreciate it! 

 Thanks for the answer.  I refinanced on year two, appraisal came at 135K.  I assume that would be my new cost basis, correct?  My account should know, but it doesn't hurt to ask BP.

Thanks a bunch, 

Frank