All Forum Posts by: John Clark

As you no doubt know, housing and transportation costs are interchangeable. Take the L to areas on the South and West sides of town. Find a decent looking neighborhood, get off, and check it out. Take notes and then research opportunities in the area. Then decide whether you want cash flow or appreciation (can't have both). South and West sides will give you more opportunities for cash flow, since prices tend to be lower.

"The benefit is i dont have annoying tenants that feel entitled and give me problems (and have tenant rights). If i dont like you as a guest i can kick your @ss out :)"

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Actually, I think holdovers who refuse to leave have to be evicted, just like tenants.

Could you sell the cut off back yard to the neighbor across the alley? It would increase the value of his land, decrease the value and taxes of your land, and you could still use the road.

"From there I realized how much I enjoyed being a landlord..."

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That says it all. Do what you love and you'll never work a day in your life.

"Does anyone have a pulse on current Walla Walla, WA market conditions?"

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No doubt they are the same as in Kalamazoo.

Sorry, couldn't resist.

I don't cut corners on either surveyors, insurers, or title companies. Personally, I've never had a mistake using Chicago Title. It's more expensive, but worth it, and CT & T has flagged issues that others (who shall remain nameless) missed or buried. Check maybe for so agent companies of places like Chicago Title. like Greater Illinois Title, but I go straight to CT & T.

"Would it help to not claim repairs to inflate my dti for upcoming loans ? It looks like claiming a lot of repairs is hurting me."

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You keep conflating debt to income (dti) ratio with taxes. Stop it. They are two entirely different things. You almost always want to maximize your deductions in order to lower your taxes. Failing to take all legitimate deductions will only increase your taxes and do nothing to affect your dti ratio.

Banks know how to read balance sheets and tax returns. Categorize your expenses properly (repair vs. capital expenditure, etc.) and take all your lawful deductions. Changes on margin of your debt to income ratio (by playing with your repair/capital improvement classifications) are not going to make a real difference except in highly unusual cases.

Bolster your reserves. Someone suggested a commercial loan (will still need a personal guaranty in all likelihood) if bank doesn't want to give you a personal loan. Pay down debt. DO NOT, however, think that not taking deductions on your taxes is going to change your debt to income ratio or otherwise get you a personal loan. All you will succeed in doing is increasing your taxes, and therefore your expenses.

"I was under contract with a legal 2 unit + 2 illegal property in Old Irving Park two weeks ago through a wholesaler."

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Just as well. I don't know why people even consider buildings with illegal units. If the city government ever finds out -- and it will -- you are screwed, blued, and tatooed. If the numbers didn't work for the old owner to make it legal, they won't work for you.

"What do I do? I NEED to stop their sale if it's still under contract."

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Now you know why I hold real estate agents in contempt.

Wait until the new mayor is elected. Preckwinkel supports rent control, Lightfoot doesn't. If Preckwinkel is elected, give Chicago a hard pass.

Also, there is a move to have STATE-WIDE rent control in Illinois. If that passes, give the entire state a hard pass.