All Forum Posts by: Frank S.

Howdy, 

I have a tenant that claims that because I didn't provide a notice of a MM lease, they don't have to comply with the 30 day notice.  My understanding has always been that if they stay after the expiration of their Lease,  that is enough to trigger the MM Lease in Chicago.

Where is that code section? I can't seem to find it. 

I'm using the standard Lease by the Chicago Association of Realtors. There is a section about Holding Over that is not very clear to me.

16. Holding Over. Tenant shall be liable for double the Monthly Rent in the event that
Tenant retains possession of all or any part of the Premises after the Ending Date of this
Lease. Landlord may at its sole option, upon written notice to Tenant, create a month to
month tenancy between Landlord and Tenant under the same terms and conditions of
this Lease. Additionally, if Tenant retains possession of all or any part of the Premises
after the Ending Date of this Lease and pays less than double the Monthly Rent and
Landlord accepts payment, this shall become a month to month tenancy, and not a year
to year tenancy, between Landlord and Tenant under the same terms and conditions of
this Lease.

Any help is appreciated, 

Those little village places were 60k and 100k just a few years ago. Heck, I'll let you have them for $275k and will buy them back in the foreclosure chopping block in a few years.  The rents don't justify those prices. I wouldn't bother. 

Chicago seems to be a tax shelter and amortization play, not my cup of tea.

Buying whatever is "cheaper" is not a good investment. $250k won't get you far.

Ejoy the pizza and the weather while in town!!

Good luck,

We restored a bunch.  It was expensive and tune consuming, but the results are nice, painted outside, natural oak inside 

The so called energy savings that will pay for the windows over time is a fallacy.

Add a good storm window to a single pane one, bronze spring, and the R value is almost the same.

This is a lot of work.

 Is your budget "cash on hand" or "purchase price".  If $40K to $100K purchase price won't work in Chicago.  On the other hand, if $100K down payment, then you can get something decent, but by no means "investment" in current conditions.   Averages are $200K in south areas to $750K in near northeast areas -  vintage with some upgrades.  You can bump those prices up as much as you want, depending on finishes and rehab condition.

The market is ridiculously overpriced now, and a rehab will cost you an arm and a leg if you can't do it yourself or have contacts.  My advice, don't do it.  You are new to the area.

Ignore the finance porn and hype, rent for a few years in a nice area, it's cheaper and more fun for young people.  Focus on your job.  Keep your fingers crossed for a correction in a few years. 

Frank

I'm analyzing a similar project.  Actually, this sounds too cheap if you have a three flat and a basement - four stories to renovate (1200 SF- per floors times four?).   If you dig out the basement and add new columns, underpin to 9 feet, steel beams, radiant heat, hardwood floors, nice light, sound system,  etc.  you can be looking at over $150K just there.   If four stories, look at fire protection rules.  Then, you have three more floors at $120K a pop or so (holding costs $3400/month, 8 to 10 months construction, engineering, architect, interior designer costs, new water service/sewer at $30K) 

That is if you delegate everything. GCs need to make a profit.  And it all depends what you consider luxury finishes, too.  The $550K can become $700K if you want.  Then, we have this insane lumber market and everyone is busy.  

Any of the contractors doing deconversions will be glad to show you a few projects and give you a quote.  I asked my neighbors and they gave me a few contacts. I was quoted $400K with basic finishes for a good old Chicago two flat last year (shakers, white trim, oak floors, two HVAC, electric, water, carpet in basement at 7.5' standard, etc.). I had to provide fixtures.  Then, add up your holding costs to that.

We need a recession.

Howdy Chitown,

On my rentals I've used $250 windows, they work just fine. White vinyl, they are never used.   Now, I need some higher end windows.  I have installers that can do them for $100 a pop.  Is it worth the time and effort to get windows online, there are a few companies out there, or is there a way to get discounts on Pella or Andersen or similar higher end quality windows?

The windows are 6 feet tall by 46, 32, etc.

Any tips? 

Those look like great options to buy at the foreclosure auction in a few years.

I may have one for you (a tenant), send me your info. 

How did your other property turnout after 8 years?  You are paying $200K more. This will help you check you calcs.   The above means your other property must make $1,000 cash per month at the same rents and expenses. If not, your calcs are wrong on this one.  For a 1% return, I rather put my money in the bank at 3%, not worth my time. 

It is not difficult to time the market, it's impossible. 

2014, there is a market crash coming
2015, there is a market crash coming
2016, there is a market crash coming
2017, there is a market crash coming
2018, there is a market crash coming
2019, COVID!! there is a market crash coming
2021, Construction will tank! there is a market crash coming (didn't happen)

You get the idea.  One day they will be right, no one knows when

Your home is not an investment, it's a personal consumption choice. Do you order a latte in Starbucks or a cup of Joe at Dunkin, same goes for one's home. I wouldn't, it's a pain to find a home.