All Forum Posts by: Jeffery Drayton

@Tamatha Mallard

I’ll definitely check it out, Thank you!

@Mark Fein yeah, I’m looking for a 2nd lien mortgage, but thank you.

Hello BP, can anyone suggest any banks or credit unions that are still offering HELOC's on investment properties that are non-owner occupied? Penfed isn't offering them anymore since April 2022. Thank you.

@Jay Thomas

I have a SFH that I rent out section 8 in suburban cook county. Unfortunately it's ran under the PHA of the Cook County Housing Authority. The HUD fair market rent definitely is lower vs CHA that runs the program in the city of chicago. You can get higher rent for the property if the tenant isn't already paying 40% of their adjust monthly gross income. Typically the section 8 tenant only pays 30% of their adjusted monthly income towards the rent , so you can ask for that to be increased by an extra 10% up to the max of 40% to cover more of your asking rent amount. The tenant will have to pay the amount over the fair market rent amount. It might not cover all of your desired rent amount…but it will get you a little closer. During the screening process I usually ask my prospective tenants, " how much is your rent at your current unit? And how much of that are you responsible for paying? This will give you a better idea of if they have enough income to cover the extra 10%

@Aaron Zimmerman Hi Aaron, I’m also looking for a real estate accountant, can you send me your information? 

I have selected a section tenant to live in my SFH in illinois "not Chicago". I will be receiving $1362 total a month. The tenant is responsible for paying $414 & section will pay the remaining $948.

My question is….do I base my late fee amount on the tenants portion of $414 only??..or do I base it on the total amount of $1362?

What are the legal rules behind this, as far as the maximum amount I can charge in Illinois?

@Jeffrey Donis

Thank you Jeff, this is very useful information, I had no idea they changed this rule. Now what would I do in a situation where would want to take out a HELOC or refinance the property? Would I have to transfer it back into my personal name…and then back to the LLC?

Hello Everyone,

I was wonder what type of structure is best for collecting rent on a mortgaged property that's under my personal name. I know about transferring it into an LLC but I don't want to trigger a "due on sale clause" so I would like to keep it under my name for now.

Should I apply for a sole proprietorship and have my tenant pay rent to a DBA to give a more professional/business impression or should I just have rent addressed to my personal name?

What do most of the landlords out here do? By the way I'm planning on building a portfolio in the future with an LLC, but for now I'm just trying to figure this situation out since I'll be self managing the property.



@Joe Homs

Solid advice!! Thank you Joe

Hello BP family,

I just purchased my first ever Rental Property here in Illinois a few months ago. The home was purchased under my own personal name and has a mortgage. I will be self managing the home , but I was wondering what type of business structure most landlords use in the this situation. I plan to tell my future tenants that I’m the property manager & not the owner. I would like to keep my privacy....

I have an LLC that I created a year ago..so I was wondering if it's okay to collect rent through there..??..even though the home isn't actually an asset of the LLC, or should I create a DBA and do a sole proprietor with a DBA??

Can someone please give me some tips to handle this?? Thanks in advance