All Forum Posts by: Henry Lazerow

I have sold a bit over 50 million of the northside 2-4 units so seen lots of day 1 analysis vs long term, they tend to not look great on paper in year 1 but rents ramp up each year and they run under 3% vacancy here so actually bring high returns over the long run. Cosmetic value adds also significantly boost the rents and equity so you can often put $30-40k in rehab and create $70-80k equity for example which snowballs over time. 

I have had some clients flip from out of state, it worked as I gave them my contacts but its risky and not something I would suggest. BP has a lot of guru junk but real life most deals that need work have 0 equity after rehab or even negative equity. To make money you need find the needle from the haystack deals and have contractors working for you at below market rates. 

Congrats on being in great financial shape! $75k is best used for another house hack that way get a better rate and lower down payment meaning can put some of the money in rehab. By doing a rehab even cosmetics as long as it raises the value it will actually lowers your leverage. I definitely would not touch the 3.75% personal mortgage and hold that forever. 

Yeah I put my deductible at max. The way I see it, I only plan to file a claim for large emergencies. Little claims raise your rates and end up costing you more over the long term. 

DSCR which has awful rates unless 25-30 down is an option. A better option though when you are young is to buy low down house hack but you need a salary to get conventional mortgages. I work with many fresh grads and even an offer letter can get you a conventional mortgage.

Report him to your local licensing boards as well as make police reports, even if not a realtor he will get large fines and potentially criminal charges. 

Eric its all in the realtor lease there is a section for parking on 1st section. I emailed it over to you already, correct? If not PM me email.  

@Henry T. Chicago property taxes are actually MUCH lower then the suburbs. We typically see 1-1.5% and in suburbs usually 2-2.5% even in Indiana if an investor its often higher tax rate then Chicago even though everyone thinks Indiana is low taxes its really just low if homeowner exemption there. For insurance I switched to Allstate and got mine down this year but my old insurer Goosehead tried to raise it by 20%. 

Just renewed another of mine today went from $1450 last year to $1600! Had 4 applications 

Even before when rates were low class A/B in desirable areas sold at negative cashflow and the buyers made a killing over time from appreciation and rent growth. BiggerPockets type buyers are a tiny tiny minority who focus on day 1 cashflow. Nothing wrong with either strategy but the BiggerPockets way is getting rarer and rarer to work.