All Forum Posts by: Jim Bryant

So a few new things I've learned about the area in the past few months.  

Ladd has crazy taxes.  I'm not sure why I've got a 2bd/2bth (spare room also use as a bedroom) that I bought for 59k and they are charging me 3800 for taxes!  I can still make a profit, but it's still taking a bite out of me.

My renters are closing on a house and moving out of our DePue "prestige" home (4bd/2th, real pretty).  I wanted to ask 900 last time, but my wife made me chicken out and ask 800. This time, I told her we're asking 900 since we have about a month before our renters can move in to their new home.  I have been getting good responses and candidates (except for one person on facebook who messaged me just to tell me I was an "*******" and a "*****" for asking that much rent in DePue).  So  not  confirmed yet, but looks like you CAN get 900 for rent in DePue with the right house.

We looked at a few houses in Streator and to be honest I've never really hung around it.  But it has a lousy reputation (even worse than DePue).  My wife noted that there were lots of grand houses in need of some love but next to abandoned buildings and seedy neighborhoods.  So we've chosen to avoid Streator altogether. 

Well I wouldn't say I have an exact strategy.  I like to buy stuff that is crappy enough to scare away a regular buyer, but not too hard to fix up.  Flooring, painting, roof, that sort of thing. 

I know what you mean about financing.  Some local banks in the area will finance a mortgage that low, although I do like to pay cash when I can.  I'm a really big debt-coward, so I try to pay them off quickly to save on the interest.  

The Illinois Valley isn't too bad for investing, but it can be hard finding any multi-family, I've been looking for a while, it's mostly overpriced and rundown.  Taxes are high as well.  There is a triplex available in Dalzell for only 79k, and could pull in something like 1800 all rented (big money for the area), buuuuuut I've been told it's so lousy with mold, that you have to sign a waiver to view it!  

The way things are now, I suspect that we'll see a big drop in housing prices in the near future, I certainly think they were inflated before that point.  

Let me know if there's anything I can help you with, I'm keeping a close eye on the Illinois Valley these days!  Since I get paid by Uncle Sam, I've been able to maintain a pretty good position and my houses have stayed rented.

So I think I understand Pre-foreclosures pretty well.  The mortgage is not being paid and the bank is going to foreclose.  The homeowner can avoid this through selling it for an amount that the bank is willing to accept.  Super.

The only issue is how do I make a move on the property.  It seems as if I have to contact the homeowner directly.  Any info on how to find contact information for the home owner?  Do you usually use official sources such as court documents, or go through the white pages?  

Finally, what's your strategy, do you send a letter, call them?  Do you make an offer or do you ask them what they think would be fair?   Also, does the pre-foreclosure process allow for any inspections of the property and such, like a contingency in conventional purchasing?

I hope everyone in the Illinois Valley is doing well these days.  So far, the quarantine has not effect my tenants' ability to pay rent.  I was even able to fill a vacancy.  Has anybody noticed significant shifts in prices these days around the area?  I was of the opinion that prices were a bit inflated pre-COVID-19, particularly in DePue (60k for a 2bd/1bth.....puuuleeeze!).  

So update on the business, everything is going well.  Country Financial was good and generous on the insurance and I was able to make house 2 look pretty good.  After a month or so I've found a renter who makes decent money and has an acceptable background, hopefully that will work out.  

Still haven't found any good multi-family type housing.  There is that one in Dalzell that no one wants to touch.  My wife took a look at it a year ago and said it didn't look bad.  I just don't want to shell out 70k at this point, I'd rather concentrate on getting number 5 paid off.  

The Dalzell house is a three-unit and, fully-rented, could be my best earner, but three units means three times trouble trying to get it filled and people in multi-units tend to be more transient and less long term.  Do any of you guys have experience with mutli-units?

So the dumb renter whose dumb kids set fire to my rent house appear to be still living in the fire damaged house!  I have already informed them that we are going to cancel the lease and that I will refund them their money (she paid in advance) when they turn over the keys (and clear their stuff out of the house), but it looks like they are back.  They were in a hotel during their search for a home, or at least I thought.  

They are paying rent (at a reduced rate), but my insurance-funded contractor cannot begin work because of their dog and crap in the house.

What do you guys think of this situation?  I imagine I could evict them, as I told them before we are voiding the lease as the house isn't  habitable (so I thought). 

Sorry to hear that Tony, there's plenty more where that came from anyway.  I wasn't  able to find a satisfactory (and cheap enough!) multifamily while I was looking, which is why I scooped up the single family in Ladd, 850 a month and a renter who doesn't want to move is a deal I couldn't pass up. 

Evan, I'm envious of your good renters.  I get too antsy and end up with crappy renters sometimes.  A couple of my houses have pretty good one, but my second house, I got a real cutie.  She made enough money and paid the rent in advance, but was a real slob!  She got some sort of settlement and went all hillbilly hollywood on the house.  She bought a big expensive fridge, an inflatable pool and of course, all sorts of lawn ornaments.  Problem of course, she didn't really cut the grass and there was plastic from the pool packaging all over the backyard!

Anyway, luckily, I guess, her kid started a fire and burned up the top floor.  So it looks like I'll get the house spruced up a bit and get rid of her.  Although I have to refund her rent of course.  

Anyway keep in touch guys, us landlords have to stick together!  I'll let you know when I come back to Illinois, we'll be living in Florida for the next couple years, we can get together and talk some shop.

Hey, so how's everyone doing these days?  I bought the 5th house in Ladd and that's going pretty well.  We're using "Pay my Rent" to collect the rents while we live far away and so far has been successful.  There was a fire at my 2nd house, because of my renter's goofy kids.  No one was hurt, but there was damage.  My insurance company is going to come take a look and we'll see how it turns out.  

So far so good though.  4th house is nearly paid off (I'm really conservative on leverage)!

Hmmm public adjuster, interesting, I haven't heard of that.  I might have to look into it.