All Forum Posts by: Jennie Berger

Hey @Roseann Koefoed I love this thread! Have you gotten any resource recs yet? I asked Gemini and it pumped out some responses, but I know literally nothing about this so I have no clue how accurate it is and it definitely also recommends consulting with a lawyer and other experts in this arena. I wish I could be more helpful - truth be told, I'm here for the responses because I'd love to learn more about this as well. Keeping fingers crossed for you and this deal!

@Kevin Morgan which areas/suburbs are your MTRs located in?

@Rebecca Nguyen welcome! 

I live very close to Southbank (in South Loop near Grant Park and the Lake) and I really love this area of the city. We're close to many parks (large and smaller), the Lake, Chicago River, transportation, restaurants, shops, groceries, Soldier Field, and a variety of hospitals and universities.

My MTR (a private bedroom and bathroom in my 2 bed 2 bath apartment rental where I presently live) does extremely well. Most of my guests are either travel nurses, medical students on rotation, or international business travelers. The reason this works well and is permitted in my building is because I live here, so my guests technically become 'roommates' while they stay with me.

The one BIG caveat I would share with your vision is to make sure management / your HOA doesn't have a rental restriction that stipulates rental minimums / %s / caps / durations / etc. Or, if they do, ensure those restrictions are amenable to your strategy and goals.

Hope this helps - best of luck to you!

Jennie Berger, Property People

@River Sava 

Hello! I own a 3-unit in Lakeview (Chicago) that I'd like to consider refinancing. Currently I have a DSCR loan on it with a local hard money lender and their rate is fairly high. I do have a prepayment penalty within the first 3 years, but if we can access that 5.99% rate, I believe it would be worth the penalty to me in the long run. What's the best way for us to get in touch? Thanks! :)

Jennie Berger

Property People

Quote from @Christopher S.:

@Jennie Berger, glad you found it helpful. I want to go through each program in more detail eventually. If you had one that you thought you could use for your project, happy to start with that explainer.

One program that has always been very interesting to me is the $1 land purchases. I'm not sure where that falls in the 'grant programs' you're writing about, and I don't even know that I would qualify for one of these. Just found them fascinating. For what it's worth - my good friend and fellow REI colleague has 2 properties she purchased for $1 each. She lives in East Garfield Park, and the 2 properties are right near her home.

Hey @Anastasia Rodriguez! I'm a huge MTR fan as well. :)

I've got a SFH in Knoxville TN, and a room/bathroom (in my 2 bed 2 bath apartment) here in Chicago, both of which I keep as MTRs and self-manage. Like you, I also love the design aspect and wide variety of potential renters this type of strategy works for.

I really like the IL Medical district area for MTRs and have looked there for myself in the past too. I'd be open to discussing possible partnerships - financial, co-hosting, and/or otherwise. Feel free to DM me and we can coordinate via email a time to chat or Google Meet.

Looking forward to connecting and best of luck with your journey!

Jennie Berger

Property People

@John William Kuhfahl 

Welcome to the club! :)

I'll echo what both @Paul De Luca and @Jonathan Klemm have said. 

And add the following:

1. The property you're considering is fairly far from 'Chicago.'  You mentioned a possible remote walkthrough and purchase - are you local to this area? 

I'm not too familiar with University Park, but in order to determine if it would make a good Airbnb, you'll want to research other similar properties (how they're priced / how often they're booked) in that area on platforms like Airbnb, VRBO, and Furnished Finder (if you're considering doing 30+ day stays, ie, an 'MTR' as well.) 

Some questions to consider asking yourself:

1. Who will be in charge of the rehab, you or a GC or individual subcontractors?

1a. Have you estimated the repair costs?

2. What makes you think a short term rental home of that size will do well in that area?

3. Do you plan to rent it out as an STR as an entire home, or by the room?

4. Who is your target demographic if you do an STR?

LTRs are usually a 'safer' play, particularly if this is your first real estate investment property. Again, connecting with a local real estate agent in that area who knows the market inside and out is your best bet. Let them help you with comparables, recommendations for the types of rentals that do best in that area, and maybe even connect you with a local contractor who will be able to get you an accurate (ish) estimate on required repairs. 

Hope this helps - best of luck with your journey!

Jennie Berger

Property People

@Christopher S. Thank you for this breakdown! I've always found this aspect of working with the city on development projects to be extremely confusing. In fact, it's still confusing to me so I mainly avoid it at all costs. However, I am aware there is tremendous opportunity here, and as a smaller developer in particular, to capitalize on and benefit not only my company but the comunities we build in, as well as the city on the whole. Appreciate you taking the time to share this.

Jennie Berger

Property People

Hey Cam. 

I'm interested in learning more. Would you please email me underwriting details and anything else you can share about the deal itself, SOW, GC team, timeline for renovations, etc? I don't think I can post my email address here, so feel free to DM me and I'll send it to you. Thank you! 

-Jennie Berger, Property People 

Quote from @Alex L.:

Thanks @Jonathan Klemm. it's just couple of blocks west of palmer square and there are standard size new constructions selling for around $1.3million.

Just closed on the purchase and it's a 40 feet wide lot. Would love to hear your experience. and people have been telling me that it's currently about $150-180/sqft to build new so I don't know if it's financially viable for me to do it at this point.

@Jennie Berger, thanks! would love to chat more about the process.

DM'd ya. :)

*I'd estimate moreso between $195-$250/SF to build, depending on finishes. At your resale price point of $1.3, you'll likely need medium-to-higher end finishes, at least in some areas of the home (appliances, flooring, countertops, etc). Let's chat!