All Forum Posts by: Frank Pilipauskas

Thanks everyone for the replies. 

Hey BP!

I currently have a tenant that has a lease that I did not renew, and should be gone by the end of today. I notified the tenant in Mid March that I would not be renewing his lease and had him sign to acknowledge he understands this. With that being said, it looks like hes not moving out on time. English is not this tenants first language and anytime I try to explain that it is not acceptable to overstay he gets very irriate and combative. I know for sure he has a new lease, but it looks like he's going to be a day or two late. I made it clear he needs to leave on time, but in the event that he does not is there a way I can charge him a full months for staying a day late if i take him to small claims? I have another renter who wants the unit, but his lease is also up at the same time. He mentioned he would just rent another month at his current unit if he is not out on time as he does not want to move twice in two days(understandably so) but this will now lose me an entire months rent unless I find a new tenant. Is there anything specific I should get aside from pictures, videos to show proof of this?

Thanks!

truly appreciate the responses! that was my worry about selling too soon, and the only way i can see myself breaking even would be to do a for sale by owner. i didnt factor in the benefits that might come from prospective lenders should i choose this as a rental, so this may definitely sway my decision. you are also correct in that one area i was initially looking at for properties is in Aurora. I guess i will have to do further research, as i know i need to go into pockets that make sense with the numbers, but also wont cause me to look over my shoulder if i have to make frewuent visits for repairs. thank you both!

@Eric Hardt really appreciate the response. You are correct, hoa is around 280 and i put 10% down. i will definitely take a look into the smart thermastats! not sure if this will help much as i already keep it low a lot but any little bit helps. i agree that multiunits around here are hard to come by and overpriced. im looking more into NW burbs

Hey BP!

I have been reading everything I can get my hands on for the last year and have a decent cushion to pursue my next property with the goal of 15-20 cash flow properties. I did not stumble upon BP until after my purchase of my Condo, so I never intended on using my current home as a rental but i am debating if it makes sense. I live in a nicer B-B+ area in the south Suburbs of Chicago(Orland Park). My Condo has a private entrance, 3 bedroom 2 bath, and allows dogs with NO weight restrictions which is pretty uncommon around here. I currently pay around 1150 per month for Mortgage + HOA. Water is included, and I only need to pay for electric/cable. Based on Rentometer, other hotpad listings, and from what i've gathered from Craigslist ads I suspect I can get around 1500-1600 for my place. The issue I have is that because the Condo is all electric, the bill in the colder months is beyond outrageous for the square footage(around $$450) last month. The price for electric is low during the spring/summer months, but i am nervous that this would cause high turnover should I choose to pursue renting this out even if i make this known. I also have heard horror stories of special assessments and i don't really know how often these can come up. If i sell now I believe I can at least break even. Purchase price of the condo was 143k which meets the 1% rule, but I do not know if this also applies to Condos. I'd love to hear the communities thoughts on what they believe the correct course is.

With that being said, I am planning on purchasing a 2-4 unit property to owner occupy and house hack. Do I find the deal or the lender first? 

I really appreciate any input. Thanks!

Hey BP!

I've been reading everything I can and analyzing deals as soon as something catches my eye, but the only areas around the chicagoland region that make sense with our crazy high taxes for buy and hold seems to be Aurora/Joliet. With that being said, I am really unfamiliar with Aurora. I know certain parts of Aurora are sketchy, so I am looking for some advice on zipcodes/streets to avoid. I am not looking to buy in the best neighborhoods, but somewhere in the middle preferably. I do plan on doing management myself when i decide to buy my first property and want to ensure that my first deal doesnt cripple me because of my lack of knowledge. Any help is greatly appreciated!

Thanks!

@Ben Wilkins Thanks for the sound advice! 

2 Multi-family's recently have come on the market that I am looking into. My main consideration is a 4plex for under 400k. 3/4 units are 2 bed/1 bath, with the other unit being 1/1. Taxes are high in this town, around 630/month but the cost of the 4plex and the rent I believe I can get out of it make me seem like its worth it. 2 Bedrooms typically go for around 1100-1200 around here, and single bedrooms between 700 and 900. All units appear to be updated aside from the 1/1, and each separately metered for water/power if i am not mistaken. I will verify this tomorrow. If this is indeed the case, the only thing i would need to cover would be trash removal/Lawn. The other is a 3 plex for around 200 and low taxes, but needs a bit of work. Both in good areas.

I wanted to get the community's thoughts on the purchase price with such high taxes. I believe even with the taxes this would be a good deal if i could afford the 20-25% down payment. If all looks good, I may look for either a partner or private/hard money lender. 

if the deal looks good enough, would it be better to take on a partner for the down payment, then get a conventional low interest rate loan with a bank or would it be more beneficial to go to a hard money lender to fund the deal alone? My issue with this is I don't plan on flipping. Because this would be my first deal, i am not sure how to proceed. If i do not get a partner, would the course of action be to get a hard money lender and then at a later date refinance with the bank to pay the lender? Wouldn't the 25% down payment still apply? 

As always, all responses are appreciated!

Thanks for the info @Van Blackman! Really appreciate it.

Hey BP!

Right now I have email alerts to notify me once certain criteria have hit the markets for the suburbs that I am looking at. These areas are ones I personally know, but I want to investigate what areas I may not be aware of that are only a short drive away. How do i determine where active investors are buying in my area? I know some areas will be better for buy and hold, and others for rehab so I am curious how I would go about obtaining additional information. Do i contact local realtors? I've heard listsource mentioned before for absentee owners as well. Would purchasing a list be beneficial to understanding what I may be missing?

I want to focus on buy and hold, specifically multi-families. These do not come on the market everyday though, so I am willing to expand my scope and look into other opportunities. If anyone has some suggesstions around the Chicago region, I'd love to connect and talk!