All Forum Posts by: Henry Lazerow

Yeah i would consider a 2nd mortgage cashout on it if rates fell in future to recapture the equity. I have a $90k heloc on it can use also use for flips, etc. but thats more temporary cash out that I only pull if plan to repay.

Cashflow increases your lifestyle. If you already have a high net worth or a high enough salary then you can focus more on equity plays. I think the bulk of BP members are not high networth so cashflow is their number 1 priority. It's also hard to access that equity unless you have enough properties to sell one off every few years, cash out refi do not always work for example I have a 4 unit its got like $400k equity but if I cash out refi it then it would no longer cashflow so the money is just stuck in there the old mortgage is at 3% so I won't ever refi it anyways. 

Thanks man, next goal to break 100 million sold haha. Yes I mean that in the past we occasionally took 2% *didn't like it but let it slide and now that the buyer broker sets minimum percent we are now at 2.5% firm minimum which is an interesting turn of events. I assume could do the charge on settlement statement but we have just instead increased offer price and seller bump co-op to 2.5% co-op that way its not out of pocket fully for buyer and just financed as part of the total purchase. I have not seen any seller offering 0 co op but have seen more and more sellers offering 1.75 to 2 percent so it just increases the buyers price by .5% or .75% not the full commission.

I wish but that rule died in 2015 unless you are in the hood. 

Here in Chicago commission have typically been between 2 and 2.5 percent of gross sale price but now with the new rules I have not met any agents willing to take less then 2.5% so what has happened is the listings that provide 2% are now increased either by seller or buyer to our minimum of 2.5%. I have not had any buyers or sellers put up an argument with this or try to buy without a buyer agent. I don't make my clients sign long term contract either just per a property saying will pay me the difference if we don't get at least 2.5% and everyone been cool with it. Some background my team has sold around 55 million now of 2-4 units in Chicago so we are the experts in the niche, maybe new agents will have a harder time now but definitely is not hurting experienced agents. 

I have rentals in rockford. It cashflows but tons and tons of issues. I would be very cautious of a house that sits vacant being a target for burglary even in nicer parts of town, not sure the draw for str in that area. Rents are high LTR.

Old topic but can’t agree more on the rent increases. In rogers park my units were $1150 in 2019, last year were $1450 and released them this year at $1600. We have a half done rehab in north lawndale and already seeing new highs for the 2 unit comps, it seems the fastest growth is 2 units in areas that become more popular for owner occupants huge equity to be made. 3/4s cashflow more and more but not seen the % appreciation of 2s and houses. 

Just saw this topic. You need say its your primary residence, its silly and counter intuitive but thats how everyone has them approved. I have an airbnb and the numbers are WAY up this summer, also manage another clients airbnb and both running almost fully booked up this year maybe the registration hurdles have lowered supply. 

P.S Just go get an ID with the address. If you own the property this is very easy, all these regulations do is stop people who are subleasing from having a bunch of airbnbs. 

Chicago priced up now down and still going up up up. I wish we had $100k discounts haha

I close a brrr cash out next week at 7.1% and it cashflows but its a D class property. Most of my investor clients focus on total return and buy in good areas where cashflow goes up to maybe brrr in a few years. This will be my 2nd brrr and I have a 3rd also in progress so still alive. The 3rd one is a heavy rehab though six figure budget and i got really cheap.