All Forum Posts by: John Clark

"I will be selling my ownership in one of my companies for $300k. . . . I’m trying to see how you would invest the $300k."

------------------------------

I doubt you have $300,000. What's your tax hit on that 300k?

The northwest side of Chicago is an appreciation play, not a cash flow play, so the first thing you want to ask yourself is which makes sense for you financially. Given that you want to live in the house, I assume that you look more for appreciation and long term holding than cash flow on immediate rental.

Keep in mind that the new mayor has made noises about rent control (e.g., allowing people to "age in place" and considering stopping water shut offs as "inhumane" (not that she could do it, because there are bonds issued against water receipts, but the mere fact that she is considering it speaks volumes as to her financial literacy, her willingness to cater to the interest du jour, etc.)), and "multi-unit" covers a multitude of sins - duplex, three-flat, six-flat, etc.. So you may want to consider that appreciation won't necessarily be what it was. I had high hopes for Mayor Lightfoot, but I fear the poverty pimps have taken over City Hall.

Look for niche neighborhoods and niche renters, and remember; transportation costs and housing costs are one and the same. For example, if you live near the Blue Line or the Orange Line, apartments or even bedrooms can be rented out to airline pilots and stewardesses. Why? Those lines connect to the airports and you can market accordingly.

Don't forget the South side. Southwest Chicago housing stock and businesses is almost a doppleganger of northwest side areas, but cheaper due to higher minority (usually latino) presence and general North side snobbery. Find areas with convenient mass transit to downtown or Midway (if airport is your market) and you can get some cash flow (not great, but some) and some appreciation.

Just ideas, feel free to ignore, but until you tell people what your druthers/tolerances are, not much advice people can give.

Oh -- NETWORK, NETWORK, NETWORK

"I'm not in the mood for spending time or money on an eviction."

-----------------------------------

Get in the mood.

From what I understand, it won't affect zoning at all. Aldercritters will still have complete control over that, so be prepared to show your "support and appreciation" for your elected thief every time you want a zoning change. They won't be able to shake you down for permits, however, a la Burke.

Contact the City's department of buildings and ask if the property was ever inspected and cited for violations, and if the violations were ever cured to the City's satisfaction. The inspectors might even have a list of companies they know who get things fixed and fixed right the first time.

"The landscaping company has now said they don't have any other option."

---------------------------------------

You need a different landscape company, 'cuz that's a lie. Forget whether Roundup is safe or dangerous, or bending to every whim (and I agree you shouldn't cater to every whim), there are alternatives, and while one may believe or disbelieve the EPA, there are admittedly safer options. 

I just don't like tradesmen lying to me. There are other options.

"Name a single city where rent control has damaged a city or its real estate market or made it unprofitable to be a landlord."

-------------------------------------------------

New York City and San Francisco, for two. Proof is in the pudding. Look at landlords' levels of deferred maintenance, tenant buy-outs in the millions, tenant force-outs, etc., etc.

You can easily cash flow in Chicago simply by staying out of Chicago. Mayor Lightfoot is going to introduce rent control, killing Chicago in more ways than one.

"Keep in mind that you are charged for the # of feet wide and long your lot is, how many hose spigots you have, how many toilets you have, and I think possibly tubs/showers?? It's listed on the back of the bill."

--------------------------------

That's for the unmetered account. Metered accounts are billed on actual use, regardless of water items.

Before I got a meter for my single family home, I was paying almost $900 a year, and this was before taxes and garbage fee were added to the bill. Now with a meter, I pay about half what I was paying before, and that's including the tax and garbage fee.

Get a meter.