All Forum Posts by: Jennie Berger

@Luke Stewart 

This is absolutely my favorite rental strategy! I have an MTR in East TN (SFH, 3 bed 2 bath) that stays about 98% occupied. And I apartment hack my 2 bed 2 bath here in South Loop, Chicago. I provide a fully furnished, private bedroom and bathroom in my apartment located in a boutique, mid-rise buiding with 5-star amenities and views of the Park & Lake.

Initially, when I set out on this journey, my goal was to rent to travel nurses. And, while I have had 1 travel nurse so far, my 4 other renters have all been business professionals. 2 from outside the country, 2 from other states. All here for various reasons, but suffice to say, my price point seems to appeal more to business travelers than nurses. :) Now, I also provide a very unique space, being that I'm 2 blocks to the lake and have water views from my apartment. This is a very rare offering from what I can tell (based on my research), and these features in conjunction with the amenities my building offers (you name it we have it) and secured garage parking available (extra $), I am allowed to charge a premium for my rental. EVEN THOUGH IT'S A SHARED SPACE.

I'm constantly amazed at how many people don't mind sharing an apartment! Given, I'm a nice person and a clean roommate (LOL) but they don't know that. Point is, yes, this strategy works and MY place works well for business travelers (individuals) and the occasional medical professional (who--no offense--ALWAYS asks for a discount :). Let it be known that I started apartment hacking in Sept 2022 and have been 95% booked since then. I'm currently booked through July 1, 2023. I was practically fully booked all Fall and Winter. I did raise my prices for Spring and Summer (pool will be open in 1 month!) My bookings usually come in 3-6 weeks ahead of time, which is great as it helps me to plan ahead and is further validation that I'm providing a place of value to people.

I do have small pockets where nobody is here, and that's a nice break for me. I've absolutely LOVED this experience and meeting people from all over the country and world. Not that this is your situation necessarily--I'm not sure if you're going to rent out an entire place or a room--but I thought it was worth sharing.

I hope this helps and if you want any more info or feedback, please DM me and we can set up a time to chat!

-Jennie

These are what I typically see for MTR expenses @Scott Phillips. This is for Knoxville TN. I'm sure each market varies a tad. How much these cost will depend on the property itself and your location. Normally I buy new construction, so my repair and capex reserves are 5%. However for a gut rehabbed property I'd set aside 7-8%, and for a rehabbed property (cosmetic updates but not fully rehabbed, depending on true condition and age) I'd set aside 10% for each. I also list on Airbnb long term, which is free so not included here as an expense. But I build in a 2% 'property management' fee for myself, since I self-manage. :) Hope this helps!

-Jennie

 Ah ok. I would need to provide AC in my units for sure. Thank you for your feedback!

 Ah, OK. It's mu understanding that mini splits may not be the best idea for Chicago considering how cold it gets here.

@John Warren This is SO good to know! I was considering installing these in a 3-unit building I'm trying to buy--as a way to avoid duct work, dropped ceilings and/or soffits--but I didn't know this tidbit. Now I'm looking for other options to get the boiler, radiators, and window a/c units out... Any other advice? :)

Thanks for sharing!

Can you share more info and resources on the 'ductless' system of which you speak? Thanks!

@Kevin SmoterIn addition to the items you & others mentioned I recommend to:

1. Get a sewer scope. If you need to repair or replace the sewer line, budget between $8-$12k. There's a chance the blockage occurs between a certain part of the sidewalk and the street. IF that's the case, the city has what's known as the private drain repair program where they pay for those particular repairs. However, you must own the building for at least 2 years and it canNOT have been recently remodeled. Otherwise, the 'remodeler' (ie YOU) becomes responsible for this charge. (So, get the scope done during inspection, and if there's a problem such as the above mentioned and the city is responsible, negotiate with the current owner/seller to apply for this program for repairs. I don't know what the timeline is, and this may be totally impractical, but it could help save you thousands of dollars.)

2. Budget for a water line upgrade if you're planning to upgrade the plumbing. (If you're going to gut rehab the property, and get plans and a permit, you will most likely be required to do this.) Approx $15-$20k

3. Definitely consider installing a sump pump and drain tile and fully waterproofing the basement. Flooding is notoriously common in Chicago basements. Or just ensure you have the proper flood insurance coverage. (I prefer the preventative measure but even that's not totally failsafe.) You should plan on both...

Old Chicago brick buildings are really beautiful. :)

Hope this helps--good luck with whatever you decide!

Jennie Berger

Property People

IF you are planning to keep this long term, the low hanging fruit (for me) would be to duplex down the 1st floor (via a 'lockable door'), add a bathroom and small kitchen, ensure there is a 'walk-out' staircase from the basement to the exterior of the building, and then rent out the 'garden' unit as an Airbnb short term or mid term, furnished. Though this won't count technically as a legal 3rd unit, you can still rent it out and collect income from it as if it WERE a 3rd unit. This makes sense if you're planning to stay put for a while. 

As @Mark Ainley said--if you're planning to sell anytime soon (next few years), your buyers (assuming they are also investors) will appreciate the income producing garden unit but be required to discount their purchase price because it's non conforming / not 'legal'. The benefit of duplexing down is it will be easier for you to get a short term Airbnb permit (STR) from the city, since it's technically your 'primary residence.'

Next, assuming you have already confirmed that you're in an ADU 'pilot' area, I'd check with an architect about the FAR and zoning of your property. Perhaps there is an opportunity down the line to add a coach house over the garage. Then that unit could then become your legal 3rd unit...

Just thinking outside the box. Verify with all necessary parties (obvi) before making a decision. Hope this helps!

Jennie Berger

Hey @Tudor Ancas. We are licensed GCs with the city of Chicago specializing in new construction of SFHs and small multi unit buildings on the North and NW side of the city. Where is your property located exactly--inside the city limits? Also, would you mind clarifying what a '1 flat expansion build' is? I'm envisioning something but it may not be correct. :) Happy to bid the plans for you if it's a good fit for us. Feel free to DM me and we can coordinate that way.

Jennie Berger

Property People

If this tax lien certificate holder (the person paying the taxes on the property every year) is neglecting the property, that 'may' be cause for concern or complaint. I'm not sure what the stipulations are, but one thing I remember from studying tax liens (lightly) a few years ago was that--I believe--you are now responsible for maintaining the property as WELL as paying the yearly taxes. So, perhaps that's something to look into and if I'm correct, contact the necessary city authorities. 

*I can see why they want to hold onto the land in Woodlawn. I would too. :D

Good luck!

Jennie Berger

Property People