All Forum Posts by: George Skidis

Insurance for 1-4 families is reasonable. Insurance for a 10plex will be higher.

How many bedrooms or bathrooms in each unit?

Is it all on one level or a two story?

If a single level you might consider 55+ independent living. If that works you may end up with tenants who stay longer and fewer vacancies.

I missed the part where the rentals will be in Indiana. Years ago I spent many months working in Indianapolis and staying at the Canal Street apartments. 

I am unfamiliar with LLCs in Indiana. If you need an attorney PM me for some info.

Not an attorney and don't play one on television. A 1031 must be for equal or greater value or the funds in excess of the value of the new purchase are taxable. The exchange must also be for like kind and quality. So house for house, apartment building for apartment building.

Have your parents considered renting the house they are living in for two years and moving back into the rental unit for 25 months. When a rental is taken out of service for personal use the accumulated depreciation goes away over a short period of time. 

After 25 months, If they can prove that they lived in the property for two of the past five years, they can sell it as an owner-occupied residence. That sale should qualify for the $500,000 sale of personal residence exemption for tax purposes. Then they could move back into their current home. 

I sell insurance and prepare income tax returns but I am not an attorney and don't play one on television or radio.

The Illinois Legislature has a law either pending or just passed that will GUT LLC protection. Rendering the LLC almost useless in Illinois. The new law eliminates the corporate veil for LLCs.

You should purchase the maximum liability protection you can get on the property policy. Then get a COMMERICIAL Umbrella policy or 1 or 2 million.

Then get a personal umbrella policy to cover your home and vehicles. Auto limits of 250/500/250 and Homeowners liability of 500K should be the minimum you carry. You can always get more. A personal liability policy "MAY" extend to one or two rentals but if you are planning on building a portfolio consider the commercial umbrella.

Another thing to consider is that the courts frown on carry high personal liability but low business liability when trying to hide behind the vail.

Alyssa Bunting handles all of Williamson Count. Great Agent 618-534-0303 

Depends on the actual location in Southern Illinois. The city of Cairo and Alexander County as a whole are in a very depressed economic situation. It was so bad that in 2018 or so all properties owned by Section 8 were shut down. It seems that to be on Section 8 you need to look for a job on a regular basis. There were no jobs to be had and everyone was forced to relocate. Marion, Illinois is located in Williamson County. It is a better place to invest because of the college and local industry. Real Estate agent Alysa Bunting is a great contact in that area. Tell her George at Illinois REIA recommended her.

That being said perform your due diligence. Ask the listing agent for a list of known issues. They don't have to search them out and they will not volunteer them but if you ask, they must tell the truth. 

Check out the Chicago Creative Investors Association (CCIA) run by Jane Garvey. Most of her Chicago landlords do not charge a deposit since the anti-landlord penalties can result in paying triple back to your former tenant for some minor infraction. So, a $2,000 deposit could cost you $6,000 in court.

Waive the deposit and raise the rent to make up for it.

Back in the 90s we had a 9 plex in Cahokia, IL. Started out asking $300 rent and $600 deposit ($900.00) for a one bedroom with water, sewer and trash provided. Couldn't give it away. Raised the rent to $400 a month and lowered the deposit to $350.00 ($750.00). People lined up and threw money at us even though we were charging $1,200 a year more. It is all about perception.

Learn how to screen your applicants. Set your standards up front.

Raise the rent to the market max and the difference will cover the deposit in 12 months or so.

In addition to running the "Illinois Real Estate Investors Association", I manage a mobile home park in Belleville, IL. Owning the dirt and renting the house is a great plan. A better plan is selling the house and renting the dirt.

Mobile homes have a title just like a car. There are recent changes in how they are being taxed in Illinois. Mobile homes in a park are still taxed as personal property and the cost is anywhere from $50 to $200 per year. Mobile homes on their own lots are starting to be taxed as real estate $1,000 and up.

There are two types of occupants in a mobile home park. Owner occupants and park owned homes. As a park owner I will not allow you to own and sublet. The reason for that is I have no idea how bad someone sucks at tenant screening. Since I cannot evict your tenants, I would be forced to take you to court and evict your mobile home. That entails removing it from the lot and placing it in a storage area. I will then need to go after you for all of the expenses of eviction, moving the home and storage fees. My expenses would be about 5 grand or so. If you do not pay, then it is time to place a lien on the title of the home and then do a repo. After which I will move my new mobile home back to the park, rehab it and resell it to an owner occupant and rent the dirt.

You can owner finance a mobile home. It works almost identical to a car loan.

Yes, Get an application from each future resident age 18 and older. Then run their background. We use Rent Perfect for all of our tenant screening.

Join your local Real Estate Investors Association (REIA). The easiest way to do that is the "Find a REIA" tab on the National REIA website. They are a .org organization.