All Forum Posts by: Jeff Burdick

I'm relatively new to BP, but I came across this thread today due to Chris T bumping it and read the entire thing from there beginning.  

I don't buy into Sid's extreme doom and gloom.  The pension shortfalls of Chicago, Cook County, Illinois are not news.  They're public knowledge and have been for quite some time...and yet big time developers are investing billions of dollars into the city.  If we were the next Detroit, this would not be happening.   

I don't know what everyone else's cash flow situation is like...but for me, property taxes equate to roughly 12% of yearly revenue.  My taxes could double and I would still be cash flow positive.  While I do expect our property taxes to continue to rise and I won't enjoy it taking away from my bottom line, it is not of the extreme, the sky is falling-esque, concern to me.  

If my property taxes were to double(hypothetically), I would need rents to rise by about 13% to offset that expense.  I can't predict the future, but my gut instinct tells me that my rents will rise 13% prior to my property taxes doubling.  

In regards to CPS, yes, CPS has been hit and will continue to be hit over the coming years and decades...but school Bell, Audubon, Burley, Lincoln, etc. etc. have not.  Schools on the South and West sides are getting hammered.  Schools on the North side are not.  Those class sizes of 40 that Sid referenced don't and won't happen in Lincoln Park or Lakeview.  Bell will still an award winning school in 2025.  

Also, I'd encourage people to follow the demographic changes of Chicago.  I just came across this article in Crain's today actually.  http://www.chicagobusiness.com/article/20161213/BL...

Chicago's population growth is relatively stagnant, but its demographics are changing.  From 2010 to 2015, approx. 52,000 people left the far south side(50,000 alone) and the west side while approx. 56,000 moved into downtown(42,000 alone), the north side and the south lakefront.  

As a vast generalization, the "working poor" neighborhoods have gotten bad enough to where people who are able are fleeing for the suburbs...but for every one of them leaving, there is a new recent grad of a Big Ten school yuppie moving to a downtown apartment or condo.  

People can debate over the social aspects to this change, but I think there is little debate that financially, this is beneficial to the city.  

 Thanks. 

 Welcome Kaila.  Are you moving to Chicago or from Chicago?  

 What are the penalties for not successfully achieving this?  And how often are they enforced?  I clear the snow for my own properties and while I generally do a pretty good job at keeping up with it, I've missed these deadlines from time to time and never once received any sort of penalty for it.  

 Yes, your mortgage will increase as you're increasing the amount financed.  A mortgage of 120K is going to be a higher monthly payment than a mortgage of 80K, assuming the same interest rate.  Interest rates have also jumped a little bit in the last month, so check out the current rates compared to what yours is if you've a fixed rate.  

Welcome @Melina Dea!!!  I am an investor of multi-families on the North Side of Chicago and a teacher in Chicago Public Schools...so I'm quite knowledgeable about the school system.  I think Chicago is both a great place to invest and to live!  Feel free to reach out if you have any specific questions.  

Welcome @Luke Martinsen!  What areas of Chicago are you interested in?  

Welcome Felipe!  What areas of Chicago are you looking at?  

Welcome @Darius Smith.  Are you looking to invest in Chicago?  

Welcome Taria.  What neighborhoods are you looking in?