All Forum Posts by: Jeff Burdick

@Reed Meyer We haven't done any networking yet except for calling one real-estate agent after seeing a foreclosure in her listings, so again, I'm sorry that I don't have any advice  We will be absentee investors, but we also have some friends moving up there from Atlanta, so we expect to visit a few times.  

Right now, I am trying to do some baselining to get a sense of how much properties in that area sell for under two conditions: pre-renovation and post-renovation.  It seems like a 15-19k SF duplex (in Chicago, sometimes called a 2-flat) for $170-200k needing light renovation is not outside the realm of possibility, but these prices make me feel cautious.  Is Chicago really so much less expensive than other big inland markets like Atlanta or Denver?  Or have I just been seeing properties with some serious stuff wrong with them.  At this point, I don't know.  A general contractor is the next person I will be calling to see if I can get some answers.

Hi, Reed. We are noobs in the Chicago market as well.  I don't have any advice to offer, but we are looking near the Blue Line on the L.  This is close to DePaul University and the fun city neighborhoods.  Good luck!

Hello,

I am a senior in college finishing up my last semester. In July I am starting my career in investment banking in Chicago.

During this downtime I have invested nearly all of my time into learning about real estate investing and educating myself before I start investing on the side of my job. I am interested in investing in multi-family residences. The plan is to spend my first year of work saving money and learning absolutely everything I can about investing in multi-family properties. Then come around May-July of 2021 I want to buy my first multi-family residence (most likely a duplex or triplex). Then I want to slowly "trade-up" and continue saving and adding more properties as I work towards larger multi-family residences. My goal is to own luxury apartment complexes down the road.

My Favorite Business Book: Rich Dad Poor Dad

My Favorite Real Estate Related Book: The Book on Rental Property Investing by Brandon Turner

Hobbies/Interests: College Football, MLB, NBA, NFL, architecture, The Office, golf, surfing

Contact: I am very responsive to my email which can be found on my profile.

Thanks a lot and I hope to meet and learn from some of you.

-Reed

Greetings everybody,

I had started my refinancing of a 3 flat that I own about 2 weeks ago. Unfortunately I work in the restaurant industry in Chicago which means, as of today, I have been placed on furlough by my restaurant. We are still receiving health insurance but not getting paid. I've been told I can apply for unemployment while on furlough so my question is, will this directly affect the refinance process? I don't want to disrupt that process but I am not expecting this to end any time soon and at some point am going to need some sort of income.

Thanks in advance for any help,

Tim

Hey BP,

I am considering purchasing a 3 or 4-flat in Chicago, and planning out my rental strategy (STR and/or LTR).

After speaking with an STR (Airbnb/Vrbo) management service today, the owner informed me that only 1 rental unit per building can is allowed. What that means is that if I were to buy a 3/4-unit, only 1 unit could be for Airbnb rentals.

This is strange, because I was recently considering a 3-flat in which the owner was pitching Airbnb'd out rental figures. That means they were either grandfathered in(?) and aren't aware of this limit, or that 3 Airbnbs is illegal within the same property/building?

I'll be speaking with a lawyer later this week, but wanted to see if anyone knew info on this. The best I could find is the Chicago ordinance reference (https://www.chicago.gov/content/dam/city/depts/bacp/ordinances/sharedhousingordinanceversionfinal.pdf

@Harry Durden, no way we can give you anything close to accurate. Could be $40k could be $200k. You need to walk the property with a GC (preferably a couple) and develop a scope of work, get some estimates. Most importantly, what are the violations? They could be nothing or they could be huge.

What's the ARV of the place? What would rents be?