All Forum Posts by: Jameson Dixon

Hello! I bought a house in Tinley Park in 2021. Current mortgage is 1748. Interest rate is 3%. I have renovated most of it  (new hardwood floors, removed walls, paint, new banisters, furnace, roof, HVAC, cabinets, appliances) with some minor things to still do. I’ve lived in the last year and now I’m ready to live elsewhere. 

My goal has always been to reduce my living expenses. Not to get rich or replace my income with real estate. Literally cutting my living expenses to 0 is the goal. I currently live with my brother and he pays rent (725). Now I’m at the stage where I’d like to:

A) Rent it out. Mortgage is 1,748. Based on the numbers I could probably rent for 2450. Based on my research, I know to add on capex, vacancy, etc. I don’t anticipate any major repairs in the near future as the big stuff is new with warranties.

B) Airbnb. This was my original plan. I’ve been looking at the airdna data to pinpoint how much I could rent per night. It’s giving about 190 per night. I have a commercial cleaning business, so I can easily assign a cleaner so not worried about clean between visits. I dont expect this to be passive, I’m fine with being involved as I really like hospitality and providing great experiences. 

C) Sell. It just crossed my mind the other day this is an option. I’d just move back to the city. I miss living by the lake. 

I thought about getting a multi family, but the cash reserves required are somewhat limiting atm. I also thought about buying a small condo (under 125k) to live in while renting. I haven’t thought much how using a heloc in any capacity as I’m thinking the value has increased with the upgrades.

Really looking for some advice on what might make the most sense given my goals (reducing living expenses to 0 + paying down debt this year and next).

Thanks!

Thank you so much for your feedback! If I am understanding, for the HELOCs don't you need equity in the property? I only put down 3.5%

Thank you all for your comments! I bought the place to live in one room and Airbnb the others. Really great point about the 0% cards. I will look into that. @Jonathan Klemm can you do a HELOC loan while living in the unit? How does that work? I haven't thought of that option.

Hello! I recently bought a 3bed/1.5 bath in the Chicago area suburbs. I'm planning to rent out one room and airbnb the other. I will need to do some repairs so I'm curious what are some creative ways to finance some of them? I have cash to cover mostly everything that needs replaced, but I'm also looking to keep as much liquid as possible. For the example, I'll need a new furnace. Is this better to just pay it outright or finance it at 0% and roll it into the rent/airbnb cost? 

Thanks everyone for your comments! The inspector was helpful but it's always helpful to perspective from others. Thanks 

I am a first-time home buyer and got an offer accepted to house hack. I had an inspection recently and I have no idea how to evaluate some of the items on it. I have done some research, but I would love to get perspective from others on what you see. My SPECIFIC QUESTION is what are the dealbreakers/major concerns based on this inspection? What would cause you to be concerned? Are these typical concerns for a homebuyer? For example, hairline cracks in the foundation - is that normal in an inspection? Should I get this further evaluated? This is an older house and I am curious if you think these are things that should be a huge concern. I do know the AC unit and furnace will probably need to be replaced soon.

The first five are priority based on the report:

GAPS (VINYL) EXTERIOR BACK: There is a missing segment of vinyl siding. This is a point of possible water or pest intrusion. A siding contractor should evaluate, and repair as needed.

WIRES 3 FT. FROM WINDOW: The main utility drop wires are closer than 3 feet from an openable window. A licensed electrician can evaluate and correct as needed.

SHINGLES MISSING: Damaged, torn, or missing shingles were observed in several areas at the back of the home. Prior to closing, a qualified roofing contractor should evaluate & repair as have deemed necessary.

DOUBLE-TAP: Double-lugged terminals were noted on the Neutral bus. These contacts are at increased risk of poor connections and overheating, especially when a single terminal houses wires of different thicknesses. The panel should be evaluated by a licensed electrician and repaired as deemed necessary.

WDO INSPECTION CRAWLSPACE: Evidence of termite activity was found in the crawlspace. Further evaluation by a licensed pest control professional is recommended.

Other items that concerned me:

NO GROUNDING ROD: As is common in older homes, the electrical meter box has no visible "Earth Grounding System" at the exterior. Adding an approved ground rod can improve safety in the event of lightning or static discharge. Evaluation by a licensed electrician is recommended.

CORNER CRACKS (EROSION): Cracks were observed on corners of the concrete foundation which may indicate structural settlement. Downspouts discharging in this area should be repaired/modified to reduce the risk of further erosion. A foundation contractor can repair as desired.

SAGGING/SOFT DECKING: The decking is soft in isolated areas. No evidence of damage to the structure was observed from the interior.

COMMON CRACKS: There are lose tape seams/cracks and unmatched paint visible. This type of damage is typically cosmetic in nature and may not necessarily indicate deeper problems. A qualified painter can repair as desired.

GALVANIZED PIPES: Galvanized steel piping is used for water supply in some areas of the home. This piping was common until roughly 1950 and typically lasts 40-60 years. Where it is found today in single-family homes, it is usually at or near the end of it’s useful life. Symptoms of aging galvanized pipes were noted, include poor water pressure (choked by internal corrosion), brownish water or rusty flakes in water when first turned on, and leaks (usually beginning with joints). As deterioration continues, re-piping may be needed.

DATA PLATE MISSING/DAMAGED: The Data card on the exterior condensing unit is not visible. Unable to verify date of manufacture and other valuable data.

AGING EQUIPMENT: Although functioning as expected, the furnace is approx 30 years old and nearing the end of its statistical service life. Professional service and further evaluation is recommended prior to closing.

HAIRLINE CRACKS: Hairline cracks are visible on the concrete foundation walls. This type of crack is common to concrete and frequently indicates normal shrinkage during the curing process, rather than structural concerns.

ASBESTOS FLOORING CONCERN: Vinyl floor tiles (and flooring adhesives) of this era sometimes contain asbestos. Asbestos is a known health hazard and is most dangerous when it is loose or damaged and in a “friable” state allowing fibers to be inhaled. Suspect building materials should be tested and removed or encapsulated as deemed necessary by a professional asbestos contractor. Testing for asbestos is beyond the scope of this inspection.

TESTING RECOMMENDED: This geographic area is known to have levels of radon in the soil that are above the EPA’s recommended actionable threshold of 4.0 pCi/L. This home was not tested for Radon as a part of this inspection. Professional Radon testing is recommended.

Thank you all for this information. Very helpful. 

Hi all! I decided to try and start for my first property.  My Uncle introduced me to a contractor he used to work with yesterday who buys cheap houses on the south and west side of Chicago and flips them or rents them out on section 8. He does most of the repair work himself and from the sounds of it, he seems very knowledgeable about this field. He asked me if I'd be interested in starting with a fix and flip. I was curious how do people usually fund these? I have funds saved for a down payment, but I was thinking of using a hard money lender.  Anyone used a hard money lender for their first one? How difficult is it to get a hard money loan? 

I have been exploring the same thing on the North Side and have found it to be pretty unrealistic with low money down on the North Side. I am in the Edgewater area and regularly search around for opportunities, but none of the numbers make sense for my short or long-term goals. I have started to look into the south-side and some of the suburbs.