All Forum Posts by: Gino Picciola

I have a 4 unit building that I can purchase for 185,000. It needs 150,000 in rehab. The property will be worth 400-450k once complete. I have an investor that has the 185k to lend me. Should I partner and pay him back, purchase the property cash, and then obtain the loan to rehab? One commercial lender that I do business with has told me I need to sell a rental property and pay off another 40k on another one in order to get the loan on my own. I also don’t have the cash readily available as it is all in my personal residence. My personal home is owned free and clear worth about 250k. Any advice as far as partnerships or how I should structure this deal would be great. I will be using this space to run my business out of one of the units, so I would like an option to buy the partner out or just simply use them as a lender.

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Thanks for the reply Kevin. I have already met with the city an they are stating they had very bad records at that time and can not produce any of the documents or even the name of the architect. I was thinking of knocking on doors of the original owners in the development to see if they new or had anything.

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Casity, thanks for the reply. Ha I don't want them to hold the money. Just did not know how that would work. I would much rather have it, so thanks for clearing that up. A hold back or seller credit is not on my local commercial contract. So looks like I will need to create an addendum for this. Any more thoughts? And thanks again!!

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Hey bigger pockets!!! I am purchasing an 8 unit apartment building in Chicago. It has not been updated since the 70's. The seller is willing to give me a $50k repair credit. I have two questions about this. One is will my bank allow this and second how would it work. I want them to include it in the loan, providing it appraises out. This will be a value add opportunity. I am looking to not come out of pocket to update all the units. Can I leave it with the bank in a separate account used only for repairs to the units? Any advice would greatly be appreciated. Thanks!!

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Hey bigger pockets!!! I am purchasing 3 lots in a townhome subdivision. The original builder lost it all. He built about 50 other townhomes in the development. He went bankrupt out of business before he was able to finish the development. I am now purchasing the remaining townhome lots allowing for a total of 17 units. I want to duplicate the exact townhomes that are currently there. What is my best option to do so? Find the architect or start over with a new one. Any advice would greatly be appreciated. Thanks!!

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Originally posted by @Ronald Rohde:

I would just be sure you add the parents as guarantors since the tenants are pretty much judgment proof. You'll have to provide furnished units which may be an additional headache for you.

Yes, I was definitely going to do that. Thanks

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Originally posted by @Colleen F.:

There is definitely a season for student rentals to start. I would not think you are in that season now. It is usually late august /early September or June start to the lease. Shopping at least 6 months prior although there is a later surge in students looking. We do both student and non-student rentals but student rentals are different they need more orientation to renting and how things in a house work. Also by the room has common area maintenance issues and if you have 3 or fewer bedrooms it is not to me worth the drama/costs. Who furnishes common area, who maintains it? they are not the cleanest people.

Look on the ISU off campus housing website and the listings there can inform you on the usual terms in your area. If it is like here many places wont be taken down when rented. Also talk to someone renting to students in the area to see if your location is a preferred location. Here the kids have very specific neighborhoods they like to live in.

Thanks. I have joined that website and looked at a few. I see your point with the common area. So should I just try and get 1500 and advertise on the schools sites? I was also wondering about the time frame. When is the best time to have vacant units ready for students?

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I have 2 properties in the ISU area (Illinois state) in normal. I have had them for about 10 years and have had the same tenants in them. One of the tenants is falling behind in rent so i will be evicting them. There is no problem with any associations at this property. I am thinking about renting them to college students for 500 p/room. Does anyone have any advice/leases/ or just about anything to help. I have always had these 2 units rented out to families. I have no problem managing regular tenants. I manage about 35 units now. Just looking for some guidance with college rentals. Thanks

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All Forum Posts by: Gino Picciola

Gino Picciola has started 4 posts and replied 8 times.

Post: How to buy a property with other people’s money

Post: Finding an architect on townhomes built 10 years ago

Post: I am purchasing an 8 unit building in Chicago

Post: I am purchasing an 8 unit building in Chicago

Post: Finding an architect on townhomes built 10 years ago

Post: wanting to rent a 3 bed 2 bath townhome to college students

Post: wanting to rent a 3 bed 2 bath townhome to college students

Post: wanting to rent a 3 bed 2 bath townhome to college students