All Forum Posts by: Frank S.

Hi there, 

Any close estimate will be appreciated it. 

Assume a 3 level unit, 4 bed, 3 bad, level 1 and 2, 1,000 sf., 3rd level, 750 s.f.    What should I assume to have the place emptied by a junk collector?  There are clothing, old pots, dishware, boxes, cages, some furniture, couches, chairs, beds, etc. It's not that bad, but it will take time.   The garage is clean, fortunately.  Appliances stay. 

Later, I will need it to get it professionally cleaned.  I'm assuming  about $1000 for the cleaning lady, but I have not idea what are the costs to get it empty. 

What should I pay to get everything out of the place as fast as possible.  I don't care if it goes to a dumpster.  Some of the stuff may have value, but it's minimal. 

Any references?  The place is in the north side of Chicago.

Thanks, 

Frank

I'll check the show! Congrats, I hope you enjoyed the experience. I will look it up. 

On my end, I did more research on this specific TV show and watched a handful of (painful) episodes.  They currently have a huge mess on their hands, it's scary.  Each and every "deal" is a an absolute waste of time and money -  horrid finances and mediocre designs.

I don't care about being associated with their bad rep if I get the incentives, but taking all risk and putting all money is an absolutely absurd offer.  I don't need the "advertising exposure".   Well, if any contractors want the exposure, I'm game, but I won't hunt them down to make it happen. 

It's funny to see how people consume this as "reality".

PM sent.

Hi Sam, 

I hope all is well.  Yes, permit is a must, the Alderman office is a block away and the neighbors are tough!

They called me back as I was posting the original message...funny. 

I'm not a fan of reality TV, in fact I had never seen that show before the call,  this was a random connection.  The original pitch I received was that I could stretch my own money with sponsorships, but now it seems they are only providing interior design and I pay full price.  Well, that's not happening if I am carrying all liability and costs.   Also, I am not a "super fan" to bend backwards for them.

So, " I was moved to the back of the list" . Alright, I said, call me if you change your mind.

This was fun while it lasted.  I will keep saving to do it on my own.... and with permits (mostly). 

They need to move fast, all the filming is worth is 30 minutes over months of work. I don't care if things are partially finished.

So far, they only offered free design services - not architectural services. It sounds like a fun adventure but that's not enough for us and not worth our time. I asked for product placement  to obtain discounts on appliances, windows, materials, and contractor's costs.

I guess, my question is, how much can we save or get for free?  Those TV shows make money on advertising.  Heck, I would have my kids on HomeDepot PJs is they want us to. 

Chicago - Northcenter

The project is a two flat deconverted to single family, the rehab cost can be up to $400K. Per the casting producer, we are on the next phase of screening- whatever that means. 

Have you gone through this process?  I am interested in feedback. I'm definitely not going through this trouble for a few grand.  

Frank

Hi there, 

Yes, I don't see many contrarian posts here. At current prices and with an FHA loan, you will not be able to leave that "home" for a year. You will likely pay more for the unit and your fees will pile up. Interest rates are low, but that pushed prices up - maybe that's what holding this nonsense.

Because of the low down payment and fees, you will be stuck there for a long time, it will take many years until it cashflows.  A home is where you will enjoy your life.  If you are looking into being there for a year, that's not your home. Is this your home?  Recall there are good deals and bad deals. Did you run the calcs?

How to save? 

• Renting is cheaper than owing a home. Get roommates and save tons of cash. This may be your highest living expense, but it can be controlled unless you chose to "consume" more - fancy areas, top of the line kitchen, garage, fire pit, vs. an apartment.  You will never eliminate this expense, you can manage it and complement it but the cost will always be there.  
• Everything is relative, the more you make the more you will spend
• Interview for a different job and hit them hard. Things are only worth what others are willing to pay for them.
• Invest in your job. Get credentials, certifications, training, etc. 
  
• Save but do no harm. 
  
• Create a solid budget.
  
• The best asset you have is you. Invest in yourself first and your career.
  
• Do not accumulate bad debt.
  

To get better financial education, you need to look far away and outside BiggerPockets.  Although there are some good nuggets here, there is also a lot of hype too. They sell dreams, books, advertising, and probably harvest your data.  There is a lot of noise.  Listen to the first 100 podcasts and posts. Get good books so you can build a threshold of knowledge to filter the junk.  

RE seems daunting at the beginning, but the whole thing can be summarized as knowing very simple calculations, understanding a market, becoming familiar with some legalities and taxes, and expanding your skills to manage it. 

Look at online financial classes, Coursera has a few on personal finances, Boggleheads forums, read books about index fund investing, personal budgeting, NOLO for RE taxes, etc.  PM me if you need book references. 

RE can be a good source of extra cash, unless you make this your job. Then, as every job, some make a lot of money and most do ok.  Unlike a regular job, some have lost a lot of money.

Best of luck, 

Frank

Hi there, 

I am looking for an architect to deconvert a two flat in Chicago.  Any references are appreciated. 

Frank

A rehabbed-ish, ish - the rehabs are typically bad- two flat is going for $220ish.  At $220K the numbers don't work unless you absolutely LOVE living in those areas and you can call those areas your HOME. The rent vs. purchase price is at less than 1% so you are stuck with a negative cash flow after CapEx. I wouldn't touch that, it's not worth my time.

If you like the condo-liked living situation and don't care about taking all the risk, go ahead, but that shouldn't be called an investment. You are buying a home and that's a consumption choice- not an investment.

The house hacking idea is laughable at today's prices, because the properties don't make sense as investments.  If you want to make money on RE this may not be the best option, don't jeopardize your financial future by making that mistake. 

My advice is don't do it. Wait until you have at least 10%  -15% for a down payment ($20K or $35K) and $10K in cash reserves.  Only because those area are the cheapest markets, it doesn't mean they are good investments.   

Good luck,