All Forum Posts by: Henry Lazerow

@Greg Scott your in MI right? “A new Michigan law bans many landlords from rejecting tenants based on source of income, like housing vouchers, veterans’ benefits or Social Security.

Gov. Gretchen Whitmer signed three Senate bills of a five-bill package Monday, Dec. 30, that prohibits landlords from discriminating based on source of income.”

Recently over 165 lawsuits were filed in Chicago against small landlords who declined Section 8 tenants. These are being issued by local "nonprofits" who are mass emailing landlords pretending to be section 8 tenants. If any prospective tenant emails you asking if accept section 8 you cannot say no. You can decline them off their credit, background and for not having 2 past positive references. I like going off references regardless of market or section 8 tenant, it really helps us avoid the trouble makers. North side Chicago I have never even had to give a tenant a late fee and none of the tenants I have placed for clients have ever given them issues either, properly picked people pay like clockwork on autopay. There is enough demand on the north side you should never have a tenant issue if you do the correct due diligence.

Secondly, lots of fake applicants lately. People are buying stolen identities off facebook groups and using that info to apply as someone who has good credit and making fake paystubs. One way we fight this is with photo verification pre-lease signing and not approving renters who don't view the place in person, our credit underwriting software also flags apps that have a high likelihood of fraud. We also dig into their paystubs on a deep level. @Mark Ainley sent out an email in regards to these fraudulent tenant apps recently and they also have some great strategies they use to prevent it. 

Old post but good read! Doing a flip right now thats gone over budget/timeline. I got a crazy deal on it though and still looking at $80k+ net vs the orignal $130k+ net. I think flips only make sense when even if budget goes up 20% your numbers still show a strong profit. Partnering is also a way to mitigate the risk early on. This one I did 50/50 with a friend makes it way less stressful and allows me to do two projects at once without overdoing my risk tolerance. 

I allow pets and charge a pet rent of $35 a month, its nice bit of extra money and pet owners tend to stay longer as tenants. Anyone can say a dogs emotional support and you will legally need to take it so may as well make money before they claim that. I also can see on apps early on if have a dangerous breed and can put those apps in back of the pile rather then it being a surprise later on. 

Yeah I would never give my ss or any of that info out. These subject to strategies all seem to risk doing something illegal, not my style or a strategy I would call sustainable. Just do a normal full loan assumption if your qualified and if your not qualified go for dscr loans even if rates higher. 

The snow companies that are good can be really pricey and we have had issues with some of the smaller guys in past. For last few years I have instead had all my tenants handle snow removal. In the multi unit buildings I put on lease "Each tenant shares responsibility for removing snow and salting on both walkways and sidewalk infront of property" and I have them initial before we execute lease. Makes life way easier as tenants can't go complaining to you about it as its their own responsibility. 

Lower the price. Truth is sec 8 tenants get to be picky and if area is too bad it will be very difficult to place them. Sell it and don’t ever listen to a guru. Total return trumps cash flow every time and most “cash flow” properties don’t even really cash flow in 2024.

I 100% agree on self managing. It’s easy and so worth it unless you have 30+ units.

@Jay Garrison grand is still the solid boarder, even if your west of Homan as long as north of grand there's solid tenants/homeowners. Even farther west the bit of north Austin neighborhood right around North ave can get solid tenants and 2 unit ARV to 400s lots of flips and brrrs going on there now. I actually lost on a $40k over ask offer there recently.

Purchase some class a/b 4 units at 25 down on fixed 30 year mortgages. We have many of these in the nice neighborhoods of Chicago and you get easy tenants, rent increases and appreciation. After own a few and experienced can try some flips. BRRR worked great pre COVID but only really cash flows now in high crime areas.