All Forum Posts by: Janina S.

About to get approved for a loan and while taking with my lender i asked if there were any other costs/fees. Here says there is a $495 loan application fee. Is this typical?

@Pedro Padierna and the elementary is considered a great school. The middle and high school are 5's. Not great and troubling when you see the good head start.

@Pedro Padierna

I'm surprised no one mentioned the high deposit requirement. You want more than first months rent for a deposit in addition to another $300 "cleaning" deposit. (Isn't that your responsibility after the tenant moved out?) That's: over $3k just to get into a home that is 1100 sq ft. If i were a potential renter I wouldn't have even went to look at the unit after I saw the deposit requirements. Is this normal in that area?!

Like the earlier posters stated: zillow estimates it to 1295. $55 dollars less than your price. That's a big difference each month.

Also it looks like you have a dated refrigerator and you do not have a microwave/ stove combo. If I'm looking for something that is considered higher end.... I expect to see great appliances. You can't cut corners, but expect "high" rent.

Keep in mind potential renters on Zillow can see when price changes. Seeing that you weren't able to price it correctly the first time is a red flag. As a potential renter I'd think you were price gouging and would hit my pockets any chance you got later and especially when it came time to returning my security deposit(s).

$50*12 =$600 vs 1 month is potentially $1300 opportunity cost. You should evaluate your financial priorities.

Offer $100 off for the first six months. Or $200 off for three. People love a deal.

@Spencer Cornelia which lenders have you worked with? I'm in the Chicago land area and this seems like the route I want/ need to go.

@Angelica Rivera it sounds like you jumped the gun and the costs may be more than 1 months rent. Even if the tenant agreed to move... if it isn't in writing it didn't happen. If the tenant doesn't pay rent: you address required to start am eviction process. Each state has their own laws. But what you did will likely cost you if the tenant returns or decides to take action.

Originally posted by @Jason Arcuri:

@Erica Gregory section 8 isn't horrible. Some are great tenants if they're treated like human beings and youI take care of the property.

 Exactly Jason. I've seen a lot of comments on this site from landlords/ investors who see and treat section 8 tenants like second class/ less than human. It is disturbing: no one forced them into that market. 

You will find great tenants in the section 8 bracket and you will find horrible tenants in the high end Class A neighborhoods.  Screen your tenants. Treat your tenants with respect. Take care of your property. 

Good luck!

@Josh Wade it seems to me that you do not have enough information to make an informed decision. Your numbers seem too best case scenario. Your rehab costs are based on 1 estimate. It doesn't seem like you've had inspections to get a full picture. Cosmetics in a rehab is the cheapest and easiest part. The m.e.p's, structural integrity, windows/ doors /roof are what can make or break you. Work with a gc or a pm to help build a realistic scope and schedule. How long can you afford to pay the bill while it is being rehabbed? 1, 2, 3, ...6 months? Then the time to actually get tenants. Don't skimp on quality. If you want top dollar: your tenants will expect your space to reflect it. Also keep it neutral. No quirky colors or finishes. Get real numbers, and time lines and add a 15% -20% buffer. Be overly cautious. Because life happens. Good luck to you.

A few things, 

Your listing looks very monotone. Nothing says "Buy me" like a brown box. This coupled with the fact that you painted over an outdated texture. You should have scrapped the plaster and put up clean drywall.

Your carpet.... looks cheap. 

The kitchen is awfully small. I think your master bedroom walk in closet is larger or the same size as your kitchen. a family that needs/wants 5 bedrooms, isn't going to want a kitchen they'd find in a 1 bedroom apartment. This tells the buyer that you either didn't know how to fix the layout, or worse, didn't care to. But you are up-charging them 100k compared to what you bought it for. 

The Road is a problem, but with a high fence, and trees, (sound insulated windows would have helped) I don't think that is your biggest problem. It's a nuisance, and if kept into consideration in the price, a buyer will overlook it.

From the area, this listing seems to be on the higher end side, which you tried to compensate by having an elaborate master bath. But the entire house should feel elaborate and high end. The carpet, the color of the paint, and the poor quality of the paint job, or lack of attention to detail, lack of curb appeal.... all tell the buyer that they can get more bang for their buck else where.

You should also keep in mind that we live in the age of information. Before, people didn't necessarily know what you bought the house for. Now they do. If they look at the house and say.... I can pull a "property brothers" and buy a fixer upper and get the house I want and spend LESS than what you are selling..... They won't bother putting in an offer. Much less buy.

You haven't said much, but what is your break even? Maybe take this one as a lesson learned, and let go of the number you "thought" you'd make on this, and just get it to sell, while at least breaking even. By being stubborn you will soon find yourself running negative, if you don't sell, or get people in there to start making money off of it. 

@Eric James It sounds like she has been talking to him. It sounds like he isn't listening. She may have suggested not investing as much into real estate. Or suggested other things. He stated the facts, that the business is bringing in 7k net but he isn't contributing to the household financially. She pays for all the bills. And her working for her father doesn't negate that she is working and bringing the income they are living off of. She isn't happy, and he isn't listening. He's being selfish and has his priorities completely twisted. 

Ask her what she wants to do. Does she want to continue working but wishes all the bills weren't on her? Does she wish she could spend money more freely, or have their lifestyle upgraded a bit? Does she want to feel like he is contributing financially. Does she want to help with the business? Does she want to have the freedom to do what she wants for a career or start her own business? We are hearing HIS dreams. What about his wife's? She has a fantastic job, according to who? Him? Her?

I think you are seriously misunderstanding her frustrations. Are you listening to her? or yourself? You said several times that you are netting 7k, but are living off of her 2800 income....? How does that make sense? You are putting everything back into real estate while your household (and marriage) are in ruins. You are doing what you WANT to do. She is doing what she HAS to do to maintain the house/home. Did she sign up for this? 

You should be contributing financially. What you are doing is living out your dream on someone else's dime, and at the expense of your wife. Of course she is miserable, and most likely resentful. If she isn't planning on leaving you I'd be surprised. Get your priorities together. Your Wife and your home should come first, and no one in this forum should  have to tell you this. This isn't a real estate problem. This is a marriage/ communication.This is pretty basic. Common sense territory. 

And like others have said.... Why isn't your business taking care of your truck payment? Aren't you going to expense it as a business expense? Then your business should be paying for it, not your wife who is making 2800 a month. And if you aren't doing the work on the properties and your contractors are...... why do you have a new truck? What is your wife driving? 97' cutlass supreme?