All Forum Posts by: Jarret Jarvis

Hi Michael,

It’s great to hear about your interest in growing your commercial property portfolio in the Chicago area. Six-unit apartments are an excellent investment choice, and I’d be happy to help you explore options that align with your goals.

Looking forward to hearing from you!

Best regards,

Jarret

Hi Omar,

Welcome to the forum! It sounds like you've got a solid strategy and a clear focus on building your portfolio with multiunit properties, house hacking, and BRRRR. It's always exciting to connect with someone diving into long-term and mid-term rentals too.

This is a great place to network and learn. Feel free to share any specific questions or scenarios you’re working on—I’m sure the community here would be happy to provide insights. If you’re exploring financing strategies or want to discuss how to structure deals for your goals, I’d be happy to contribute where I can.

Looking forward to seeing your journey unfold!

Best,

Jarret

Welcome to our event where were going to learn on how you can invest in yourself, not your landlord!

Are you dreaming of owning a home but unsure where to begin? Whether you're a first-time homebuyer or someone looking to expand your real estate portfolio, this event is tailor-made for you! Join us on January 22nd at 7:00 PM CST for an engaging and informative virtual event that will walk you through every step of the home-buying process.

Our expert speakers, who have years of experience in real estate and finance will cover all the essentials to make your first purchase. You’ll learn how to find the perfect property that suits your needs and budget, understand the benefits of buying, secure the best mortgage rates, and properly navigate buying a home with confidence and ease!

We’ll also dive into important topics such as understanding the current housing market, making smart investment decisions, and avoiding common pitfalls that can arise during the buying process. With practical tips, real-life examples, and answers to your questions, this event is designed to equip you with the knowledge and confidence you need to make informed decisions.

Don’t miss this opportunity to learn from top professionals in the industry and connect with others who share the same goals. Your journey to homeownership starts here! Register now and take the first step towards turning your dream of owning a home into reality.

Hey @Jason B.,

Thanks for sharing the article and starting this discussion! It’s definitely exciting to see suburban Chicago getting recognition as a hot rental market—it’s something I’ve noticed in my own experience as well. The combination of families looking for more space, good schools, and a quieter lifestyle has been a big driver of demand.

For my investments, I’ve noticed:

1. High tenant quality: Families or professionals relocating to suburbs like Naperville and Wheaton tend to stay longer, which helps with stability.
2. Increased competition: It’s definitely tougher to find good deals, especially in top-tier school districts. I’ve had to widen my search radius to smaller suburbs or target properties needing light cosmetic work to make the numbers work.
3. Value-add opportunities: Adding amenities tenants love, like finished basements or upgraded kitchens, seems to justify rent premiums in this market.

Navigating the competition:

• Be creative with financing: Seller financing or partnering with other investors has been helpful to secure deals when conventional offers didn’t cut it.
• Work with local agents and wholesalers: They often have their finger on the pulse of off-market opportunities, which is critical in a hot market.

For those new to suburban Chicago investing, I’d say the key is finding the “sweet spot” neighborhoods—ones on the rise but not yet maxed out in price. Also, keeping an eye on zoning changes or upcoming developments can help you get ahead of the curve.

Would love to hear more about your experiences too—what areas are you currently focusing on?

Cheers,

Jarret

Hi Kyle,

Welcome to Bigger Pockets! It's exciting to hear you're taking the leap into real estate investing. Converting your condo into an investment property and transferring it into an LLC is a smart move for liability protection.

You’re correct that retitling the property involves Chicago’s transfer tax, which can be substantial. Typically, the tax is based on the assessed fair market value of the property at the time of the transfer, even if it’s not a traditional sale. A real estate lawyer can help you navigate the specifics, including ensuring you don’t inadvertently trigger any unintended tax consequences.

A few tips to consider:

1. Check with your mortgage lender: If there's a loan on the property, transferring it to an LLC could violate the loan's due-on-sale clause. Some lenders allow exceptions for transfers to LLCs owned by the borrower, but it's worth confirming first.
2. Explore transfer tax exemptions: Chicago doesn’t make this easy, but there may be exemptions or reductions for certain types of ownership transfers. A knowledgeable attorney can advise here.
3. Create a solid operating agreement: Since you own the condo with a friend, a clear operating agreement is essential to outline responsibilities, decision-making, and profit-sharing for the LLC.

To save on costs:

• Look for real estate attorneys who specialize in investment properties and might offer package deals for the retitling, operating agreement, and filing the LLC.
• Shop around for title companies that can handle the transfer smoothly and provide competitive rates.
• Research DIY options for setting up the LLC if your situation is straightforward, though I'd still recommend a lawyer for the transfer process itself.

Good luck with the process! If you’d like, I’m happy to connect you with professionals in Chicago who specialize in this.

Best,

Jarret

Hi Anca,

It sounds like your parents are in an exciting but complex situation—kudos to you for helping them navigate it! Here are some insights that might help:

1. 1031 Exchange Feasibility: Yes, a 1031 Exchange is possible even if they’re purchasing a lower-priced property. However, any funds not reinvested in the new property (the difference between the sale price and purchase price, after closing costs) would be considered “boot” and taxed accordingly.
2. Is It Worth It?: A 1031 Exchange can defer a significant amount of capital gains tax, so it’s often worth it for high-value transactions. However, the process can be complex, with strict timelines (e.g., identifying a replacement property within 45 days and closing within 180 days). Consulting a tax advisor or 1031 Exchange expert is essential to determine if the benefits outweigh the hassle.
3. Taxes Without a 1031: Without the exchange, your parents will owe capital gains taxes. The calculation involves:
   • Selling Price: $1,075,000
   • Original Purchase Price: $355,000
   • Depreciation Recapture: $105,300 (taxed at 25%)
   • Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).
   • State Taxes: Since the property is in California, state capital gains taxes will also apply.

Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.

If you need recommendations for professionals in Illinois or California, feel free to ask!

Best of luck,

Jarret

Hi Joshua,

It sounds like you've got a solid situation—congrats on positioning yourself so well! For a first-lien HELOC on a 2-unit rental property, I highly recommend reaching out to Taylor Adams at A&N Mortgage. Taylor has extensive experience with investment properties and creative financing solutions, and he's great at finding options tailored to unique situations like yours.

If you’d like, I can share his contact info or make an introduction. Let me know!

Best of luck with your financing,

Jarret

Hi Delroy,

Congrats on your 2-flat purchase—exciting times ahead! Converting an unfinished basement into a third unit can definitely add value, especially here in Chicago. While the cost can vary depending on the scope, zoning, and materials, I’ve seen similar projects run anywhere from $50,000 to $150,000, depending on factors like plumbing, electrical upgrades, and structural work.

If you’d like, I can connect you with a few contractors or architects in Chicago who specialize in basement conversions. They could give you a more precise estimate and help navigate zoning regulations and permitting.

Let me know if I can help or if you want to discuss your plans further.

Best of luck with the project!

Jarret

Hi Dan,

Exciting goals for 2025—congrats on taking the first step! With your maintenance and construction background, you'll definitely have a leg up in creating value, whether you go with a smaller home or a multi-unit property.

If you're exploring seller financing and deal structuring, connecting with experienced investors here in Chicago will be a game changer. Chicago has plenty of opportunities for value-add projects, and I'd be happy to share some insights or introduce you to a few local investors I've worked with.

Feel free to reach out if you want to talk strategy or specific neighborhoods!

Best of luck,

Jarret

Happy New Year Evan!

It's great to see you're looking to start your real estate investing journey. As a fellow Chicagoan, I understand your reasoning for exploring opportunities outside of Illinois. Both Indianapolis and Louisville are excellent markets to consider—affordable entry points, landlord-friendly laws, and steady rental demand.

Since your background is in data science and analytics, you already have a strong foundation for analyzing deals. Pairing that with relationship-building will help you uncover off-market opportunities and find local experts who can guide you.

For meetups, here are a few ideas:

• Indianapolis Real Estate Investors Association (Indy REIA): They have a mix of virtual and in-person events and are a good starting point for networking with other investors in the Indy market.
• Louisville Real Estate Investors Group (REIG): A similar organization for the Louisville market, with educational and networking opportunities.
• Check out BiggerPockets Meetups: Many cities have local meetups organized by investors active on BiggerPockets, and they often include virtual options.
• Facebook Groups: Look for local investing groups like "Indianapolis Real Estate Investors" or "Louisville REI." These can be great for making initial connections and learning about specific markets.

Since you're thinking long-term, consider spending some time in your target markets to build relationships with agents, property managers, and contractors. Even a weekend trip to scope neighborhoods can give you a feel for the area.

Good luck building your portfolio, and feel free to ask if you have questions about getting started!