All Forum Posts by: John Clark

Whether one misses an opportunity because of insufficient funds or one misses an opportunity because of lack of qualifications (e.g., too high a debt-to-income ratio) is irrelevant; you missed an opportunity. Solve the problem. Even if the interest rate is higher, the refinancing is for a much longer term, so your overall payments go down. If you'd like, you can up the difference into the refinanced loan each month until you've paid in the principal amount of the car loan. Wouldn't make all that much financial sense, but it might give you peace of mind.

Remember, It's not important to grow fast, it's important to start. Your DTI ratio is, per you, a limiting factor. Do what to can to stop that. Some other poster wrote that he could disregard the loans if his outfit was allowed to directly pay the loans off out of proceeds at closing. Banks will place greater weight on paying off the car loan than they will the credit card debt, because you are much less likely to go out and buy another car. You get to maybe drop collision and comprehensive insurance coverage too, usually a significant savings.

How much do you owe on the student loans and the car? Look into a cash out refi where the bank takes a lien on the car as well as on the house, and the bank directly uses proceeds to pay off the car loan and the credit card so it knows they're paid off. If you can swing it, get the bank to do the refi without a lien on you car, but the bank pays off the car and the credit card. That improves your DTI ratio and you can drop your collision and comprehensive coverage, saving you hundreds on your car policy premiums.

Does it slow down your expansion plans? Sure, but the cash flow from this house, the AirBnB income, and easy rentals in a university town make you a "yes" for the next house purchase.

Believe it or not, call (best to go down to in person) the Bolingbrook buildings department and ask the building inspectors which contractors they have had the least trouble with/do the best work. Then contact those contractors.

Do you already own the building? Contractors won't waste their time giving estimates so you can determine an offer price.

I am far more concerned with rent control and ridiculous pro-tenant rights laws (I believe in a slight tilt towards tenants) than in investors overpaying. What return you are happy with is up to you, so why should I "worry" about it? If you get crushed, more opportunities for me and others. If you don't, then I probably will benefit from that same appreciation as well.

Rent control, eliminating no-cause evictions, inconvenience payments, those crush values much more readily and to a greater extent (usually) than a bubble burst -- there's no way to work around them and there's no opportunity to take advantage of.

Corporate liability only is bad, since the owners can move money around and make the company  judgment proof. If you lease to a corporation for its employees to use, then you need a personal guarantee from each owner. You also need the company (and owners) to agree to limit the boarders to active employees, and make them responsible (complete with indemnification of you) for evicting former (for whatever reason) employees within X days of loss/ change of employment status.

And that's just a few of the considerations you'll have. Your lawyer can give you more.

If a big corporation wants to rent and use it for employees, sure. You know Microsoft and BNSF Railroad are good for it. Your lease needs to be more extensive and you need to check with city hall about such arrangements, but you'll get paid and your apartment repaired. Joe Schmuckatelli and his local "company" looking for a flophouse for seasonal/low-paid employees? Hard pass.

"I mean - you really would evict a good tenant that is pregnant if she had to take time off to give birth and it may make her short on rent???"

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You can be a good tenant or you can be short on rent. You cannot be both.

I would not mention the pregnancy at all. That's asking for trouble. IF AND WHEN the tenant needs rental assistance resources, give her information then.

In Chicago, the police won't authorize a tow (as others have said, YOU cannot touch it) unless the license plates are missing.

Jus' sayin'

I don't mind short term rentals being regulated due to neighborhood externalities -- traffic, noise, parties, too many people, that sort of thing. I mind regulations meant to interfere with the market.My feeling is simple: if the service workers can't afford to live there, the local economy will collapse and the tourists will move away and the rich remainder will be willing to pay prices that allow the companies to pay higher wages -- Equilibrium.

What I don't like is businesses using government action in throttling short term rentals. That's getting a subsidy via wage suppression -- force down rents in order to be able to keep wages down.

So, no, I cannot abide by "keeping housing affordable" as an excuse to ban/regulate short term rentals. Let the affected businesses build dorms (suggested above) or the like.

Shut them down immediately, AND report them to the appropriate state and local authorities for an unlicensed day care.

Look at your lease. Does it say that unlawful activities are forbidden and grounds for eviction? Activities that increase risk to the landlord are forbidden and grounds for eviction? I bet it does.

States and localities do not take kindly to children being put at risk, especially by landlords who tolerate tenants doing improper activities risking children, as that just shows the landlord wanted to make sure he was paid, even if that meant risking the health, safety, and welfare, of children.

Shut them down immediately if not sooner, and report to the appropriate authorities.