All Forum Posts by: Jacques Ikolo

@Prashanth Mahakali Thank you for your response. The bathroom is in the attic, I was told by the city inspector that I need a "deconversion permit." I finally reached him today and he confirmed that it just need to be a regular Building Permit and mention in the description that it's a bathroom deconversion, removing fixtures, etc.

@Jonathan Klemm Thanks for your response. Long story short... I hired a project manager who then hired an unlicensed contractor to add a bathroom in the attic. The bathroom was not done up to code and the city inspector is requiring me to get a "deconversion permit" to remove the bathroom before he removes the other minor violations that are unrelated. 

Hi does anyone know how to pull a deconversion permit on the Chicago city website? I've been searching for two days and the city hasn't responded to my email/calls yet. I am deconverting a bathroom into a closet. So, I'm just removing the fixtures, closing up the holes and repainting, and carpet/tiles. I've nailed it down between two Permits. Form-400 (Building Permits) and a Easy Permit. I'm not sure if there's a specific "deconversion Permit" but I can't find it anywhere if there is.  Any advice will help, Thanks. 

 Thank you for your response. It's a great point that I should not limit myself to one market. Though for flips, I do not mind buying OOS. For buy and hold, I would like to be established in one market first before I move on, just so I can keep business coming to my GC and build a great foundation for my business.

 I totally agree, having done a long distance flip, I would like something closer to home where I can have more control. Though I am not imposed to long distance investing, I love the idea of having long term buy and hold properties to be closer to home. 

Hello All,

I am investing OOS, finishing a flip in Chicago. I have some ideas on what to do with the money but I'm conflicted with which the best idea. My main goal is cash flow, so by reading this you can tell where I'm leaning towards, but is that the best idea? The flip will net me about $70k, and also have about $50k in LOC that will be available. My two scenarios are: 1) Keep investing in Chicago, where there are plenty of small multifamily properties and I can start the BRRRR strategy, with multi-units. 2) Start investing near where I live, with more single family (not a lot of multifamily in the area) but BRRRR strategy also. There is a big development going on and house prices are fairly cheap and will definitely go up along with rent in the area.

1) Chicago price range will be about $100-125k purchase price and ~ $50-70k rehab (MF)

2) closer to home will be about $80-100K purchase and ~ $20-50k rehab (SF)

So to sum it up, I can do cheaper SF properties and cheaper rehab closer to home with an upward trending area due to the development or I can do small MF properties with a little more expensive rehab and purchase but more units and potentially more cashflow. 

Thanks in advance. 

@Carter Still

Love this strategy as well! In the process of turning my primary into a rental.

@Matthew Lynch

Hey, most people do not know this but for FHA loans you CAN purchase a 5+ unit. You just have to decommission the units and bring it down to "4". In your case, you would have to decommission 2 units. You wouldn't be able to rent out the 2 if the 6 units until you refinance out of the FHA loan. Talk to a lender on their requirements, but most of them require either to remove the kitchen appliances and/or knock down a wall so that the two units are "duplexed" or combined with another unit. Totaling it up to 4 units.

EX) If the six unit building has 1 bed 1 bath each, you'll combine them to have two units that are 2 bed 2 bath and two units stay 1 bed 1 bath.... And there you go, you have a 4 unit building that is FHA approved.

@Luke Eilert

Hi Luke, not sure what state you are in but in North Carolina you have to live in the property for two years to bypass capital gains taxes if you are Selling the property. If you refinance and keep the property then it's 1 year. When you refinance you don't have to pay capital gains. Hopes this help.

@Brandon Tran

Yes that's understandable. I work downtown so it will be a drive for me as well. But we would only have to do it for a year before you can move out and rent the entire place, then you can find something closer. By then hopefully you saved enough cash to buy another one, or have enough funds for 20-25% in Charlotte.