All Forum Posts by: Ran Fridman

Hey there!

With a budget of $50k - $100k for down payments, you're in a solid position to get started. If you’re looking at single-family homes or 2-4 unit multi-family properties, your budget can go a long way, especially in the Chicago suburbs.

For single-family homes, you could potentially afford 1 or 2 properties, depending on the price range of homes you're targeting. Multi-family properties may allow you to buy 1 higher-priced one, or you could look for a mix of smaller, more affordable multi-family options.

As for diversifying, I agree with your instinct — spreading your investment over a couple of properties can reduce risk and give you better cash flow. However, putting it all into a higher-quality property might give you more stable returns in the long run.

In short, if you can find quality properties that meet your criteria, diversifying could be smart. But if you come across a great single higher-end property, it might be worth putting more into that.

Good luck!

Hi Jake:  I'm Ran Fridman a Property Manager here in Chicago, and also Indiana and Milwaukee with over 15 year's experience.   

Here are the Positives:

1. Upfront Payment: The tenant’s offer to pay the full year of rent upfront, along with the deposit, shows a commitment and provides financial security for you in the immediate future.
2. At least She was Honest in Her Communication: The tenant has been transparent about her situation, which can be a positive sign of reliability and sincerity.

My Negative Concerns:

1. Her Future Financial Stability: It's only a one-year lease, if her medical condition and financial condition should worsen (Heaven forbid), you may have to face her wanting out of the lease earlier than the 12 months and eventually you may be faced with having to decide not to renew the lease (after her 1 year contract is expired) based upon the sad news of her condition becoming worse, (Heaven forbid).  
2. You can always request Medical Documentation: Request documentation of her medical situation and a letter from her doctor to make sure her condition will improve and ask if she is up for taking care of the property while she is recovering.
3. Check Her References: Contact previous landlords for references to get a sense of her reliability as a tenant.
4. Lease Terms: You can always start with a 6 month or a 1-year lease option if you have a good idea of her overall health condition.  Warmest Regards!  ~Ran 

Hi Samantha:  Sorry to hear about your dilemma my friend.  I'm Ran Fridman, and I have been in the property management business for over 15 years. Having a property manager is the solution for dealing with matters that occur with problematic elements of our population, and in alleviating yourself from these kind of stressful encounters.  Prescreening tenants is the best way to handle situations before they happen. If they have low credit scores, shady history, and lots of heartbreaking stories, they don't have the money now, and they won't have the money after, and you will be sad to discover this one month down the road. Simply write the tenant prospect the following letter and be done with it:  

Hi [Prospective Tenant’s Name],

Thank you for your interest in renting our property. After careful consideration from our financial department, we have decided to return your holding deposit and not proceed with the lease. This decision is based on the need for timely and reliable communication and payments, which are crucial for a successful landlord and tenancy relationship. I wish you the best in finding a suitable home.

Best regards,
[Name of your Company]

As a property manager, I always recommend that the property owner maintains ownership of the listing. While some property management companies may prefer to control the listing for operational convenience, it’s crucial that you, as the owner, retain ownership to safeguard your reviews, booking history, and overall control of the property. Reviews are a significant asset, and losing them can hurt future bookings.

If a PM needs access to manage bookings, update pricing, or handle guest communication, they can still do so without owning the listing. Sharing access through co-hosting is a common approach that allows the PM to perform their duties while you maintain control over the listing and its reviews. This way, you’re not at risk of losing all your hard-earned feedback and visibility, which could set you back in the competitive short-term rental market.

It's essential to find a PM who can work with you in this setup, as it's a balance between functionality and maintaining your property’s reputation online.

In this situation, it’s important to approach the tenant professionally and review the terms of the lease to make sure the rent increase was properly communicated and complies with local laws. After that, a calm conversation can help. Explaining the reason for the increase and providing some market data to show how rental prices in the area have risen could make things clearer for the tenant. If they’re still resistant, you might want to consider negotiating a compromise, like a smaller increase or a gradual rise over time to ease the adjustment. However, if they continue to refuse and there's no resolution, you may eventually have to look into the legal steps for eviction. It’s best to handle this situation carefully, keeping the communication open and professional throughout the process.

It’s normal to feel unsure with everything happening in the world, but real estate is usually a long-term investment. Instead of waiting for things to calm down, focus on these:

1. Local Market – Real estate varies by location. Some areas may still be good to invest in even with global uncertainty.
2. Interest Rates – Try to get a good mortgage rate now, as waiting for rates to drop could be risky.
3. Cash Flow – If the rental income covers your costs and gives a profit, it's a good sign to buy.
4. Long-Term Thinking – Real estate tends to grow in value over time, even if there are short-term changes.

Rather than holding off, look for deals that make sense for your goals now.

Congrats on your progress! Based on what you've shared, here are some options to consider:

1. Leverage Home Equity – Use a Home Equity Line of Credit (HELOC) or refinance to access funds for a down payment on an investment property.
2. House Hack with a Duplex – Sell your home and buy a duplex. Live in one unit and rent out the other to cover your mortgage, freeing up more cash.
3. Partnering – Find a partner to help with funding or experience so you can acquire more properties faster.
4. Creative Financing – Look into options like seller financing or lease options to reduce upfront costs and grow your portfolio quicker.
5. Build Reserves – Make sure you have enough savings set aside for repairs or vacancies, especially with multiple properties.

Once you’re out of debt, that extra $30-$40k per year will really help you expand. Keep learning, and good luck with your first investment!

Hello, my friend. Based on our experience, it's mostly FB groups, TaskRabbit, and other stuff like that. The best thing is if you got a recommendation from someone, because you never know what to expect 😉

Hello, my friend! What we can suggest is just to use the original lease agreement, and where the unit is, just to put "Garage" and add that the only garage is rented. There is no specific form, to be honest, to lease a garage. Hope it was useful 😉

Perhaps you need help in finding tenants and managing your rental property? Hello there! I am Harvey, one of the Property Managers at Fridman Properties Family. Our company - Fridman Properties LLC is a property management company that specializes in the field for over 20 years! We help investors find, analyze, finance and manage rental properties. We even have in-house realtor if you want to find additional properties in Chicago! Our owners are a lovely couple who also own multiple properties spread in Chicago, Indiana and Wisconsin which are all managed by the company. Be it finding tenants, doing repairs and renovations, rent collections or even maintaining the yard, we can manage it all! We don't even charge extra to find you a suitable tenant! If you're interested, you can schedule a meeting with our owner, Ran Fridman, at this link https://fridmanproperties.com/en/property-management-meeting. Mention my name, Harvey to him, and I'll personally take care of you during your onboarding process. Thank you!