All Forum Posts by: Gideon Blustein

@Jefferson Riggsby unfortunately, I've found out (at least in my case) it is very expensive! A couple of issues that I had not originally factored (shame on me) were: Sprinkler system requirements, upgrading water and sewer connections for much higher capacity, upgrading electric and gas (plus meters) for higher capacity. So...bottom line I'm somewhat stalled right now. Also, $/sq ft construction estimates have increased significantly in my area in the last year. This helps explain why most of the examples where I've seen this done are done with some sort of affordable component that includes low income housing tax credits or they're done in luxury areas where the rents justify the conversion costs. Unfortunately my area just doesn't have the rents to make it work...unless I can find some benefactor. 

On the plus column: I began taking a course offered through the Chicago Rehab Network re: developing affordable property. One of the sections was all about creating a pro forma. So, at least as I approach future properties I'll have a clearer sense of estimating costs. 

Thanks, @Mark Ainley. Definitely, let me know how I can help. I've heard mostly horror stories about Romeoville Village Government/Licensing, so glad it is going well with you. Our local group of landlords is a great networking group. 

Hi Brian- what are you looking to find out? I think there are a lot of folks who are happy with their investments. I have invested around Joliet, but not in Joliet for one primary reason: the local government is a mess = unpredictable. Happy to talk further - I've been cautious, but I know others who've had great success in Joliet. 

Hi All- I'm currently in in talks about acquiring a school to convert to apartments in a small town. I've got a good handle on zoning, building codes. What I would REALLY love is if anyone can point me toward any kind of budget/cost analysis. I suppose it would be fairly similar to major renovation of a multifamily - the building I'm looking at would be 6-7 units downstairs is completely plumbed, upstairs needs to be plumbed. Again, mostly interested in three things if anyone can share insight: 1. renovation budget (ballpark) 2. how to figure a post-construction value or ARV 3. Interior aesthetic/practical ideas for design (ex: how to make cinderblock walls a little more "homey." Thanks in advance!

I have a couple of vacant lots and I'm interested in comparing costs of putting a manufactured home instead of stick built on them. I know there are financing and building code aspects to consider, but I'm mostly interested in the total cost breakdown. Anyone with experience on this topic? Thank you!

Hi Jason- the best way to find it is to join the Facebook group: Joliet Real Estate Investors Group. Look forward to meeting you. 

Hi Steve- you’ve found your people! I live in Coal City and participate with both the Joliet Regional Landlords Association and the Joliet Real Estate Investors groups. The two work together and host free events as well as some paid member benefits. Both are low pressure networking groups. I don’t think BP will let me post links to the groups but google should be able to point you toward us - or private message me. I think you’ll be pleased with the networking/assistance from experienced folks. 

Thank you for the good information. The mortgages are not considered primary residence, they're investment property mortgages but they are in my name so I get residential rates, not commercial. "super low" right now I consider 4.5 to 4.75 - I'm asking the question: is that not as low as I think it is? Are there 30 year commercial loans at rates similar to this? 

Yes - but I also don't want to give up my beautiful long term, low interest rates. Commercial loans I've researched have shorter terms/higher rates. Wondering if there are any loan products that are closer in terms/rates to residential mortgages.

Hello BPers- I've got 4 active SFRs and want to grow to 10. Debating whether to keep the loans/properties in my name and benefit from long-term super low interest rates or convert into LLCs and do commercial loans that have shorter terms and will inevitably see rates climb in the next 5 years. Is there a loan product that doesn't force me to choose ie. long-term low rates, but can be applied to a property owned by an LLC?