All Forum Posts by: John Warren

@Connor Chatlos I would say the part AFTER a client signs a contract is when the real fun begins. I imagine you may be in for a surprise here in IL with how real estate is transacted. Having the right attorney is a big part of the business, but also understanding how violations, town inspections, zoning certs, transfer stamps, PTAX and other "fun" parts of the closing process work are a huge part of what we do as agents. 

@Shannon Mogilinski which areas do you cover? 

@Marc Shin we use both granite/quartz and laminate in rentals depending on the size and rental quality. We manage in the Chicago suburbs and do a lot of work force housing. We also have our own crew, so we do a lot of laminate. For clients who look at doing laminate, it almost never makes sense since the labor costs they are quoted to install end up eating up the savings. 

For an STR situation, I would only do a trendy quartz at this point. Quartz is virtually indestructible, and you will get that "it" factor in an STR that you need. The difference in cost shouldn't be as much as you are thinking.

@Kevin Zmick the rental market in Chicago can be very, very seasonal. This is especially true for the city and for most of the trendy neighborhoods. Your price point is right around where it gets tougher to rent in the off season. If you have the opportunity to list this during the summer in the future, you will likely be able to get quite a bit more for your unit due to seasonality. 

Take this time to make sure you have professional photos of the unit taken. This will come in handy next time you are ready to lease. Congratulations again on your purchase!

@Michele Richard west loop will be challenging for investing since the area exploded so much the last few years. It is a great spot for restaurants though! 

I would focus more in established neighborhoods if I were you. You may want to establish what kind of property you want as well. For instance, if you want to do 2-4 units then West loop won't work, but Evergreen Park or similar areas might due to the housing stock. 

I would probably think through which neighborhoods you personally would want to live in as well in case you decide to house hack. 

@Kevin L. be prepared for the emotions from your tenants. This is a people business ultimately, and I can guarantee you that a paying tenant won't be thinking about the "savings" over the years on cheap rent. Most of them are there because of the cheap rent and won't be able to afford other places. 

I always go in with a simple offer of this is the rent, and we are also comfortable giving you a (insert something you need to do anyways like a basic, white paint job or a new appliance).

This is one of the most uncomfortable parts of the business though, and the quicker you get over being able to have these conversations, the quicker you will be successful in this business.

@Michele Richard I would start in your own backyard first. Which area do you live in? Which areas make you feel comfortable? Normally you need to find a bread and butter B class neighborhood to make money in real estate. Look for the Star Bucks and Jimmy Johns to find the right type of neighborhood. 

You also will want to find an area that is very transactional. This is the part a lot of newer investors miss, but if you find a good neighborhood where very few properties trade then there won't be a market for you to find (or even know how to evaluate) a "good" deal. 

Welcome to the West Suburban Building Owner's Association!

We meet on a monthly basis to discuss topics pertaining to building owners and housing providers here in the Chicago suburbs. Our goal is to help you connect with like-minded individuals, stay up to date on industry hot topics, and to participate in resource sharing. We are a membership organization, but attending is free! We are centrally located to suburbs such as Berwyn, Oak Park, Forest Park, Elmwood Park, Lyons, Cicero, Stickney, Broadview, Bellwood, Hillside, Brookfield, La Grange and La Grange Park.

Join us at this month’s real estate meetup for an exciting panel on leasing. we will discuss tips and tricks and best practices for leasing. Don't miss it!

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@Jacob Nevarez welcome to the forums! As you look at buildings, pay attention to the mechanical setup. A boiler building will operate less profitably than a furnace building. Check who pays the hot water for the tenants' units. Check how many electrical meters there are, and if there is one for the common area. 

You are on the right track here! Which suburbs are you looking in? I have done well in Berwyn over my career, but there are so many places you can look. I would focus on an aera you already know and want to live as your base and get to know the inventory in your area. 

@Galvin Mendoza we manage a lot of larger buildings now that have a mixture of galvanized and copper pipes. Many of these buildings have anywhere from 6 to 24 units, and when you do work on one section it will clog some of the fixtures downstream. You can easily unclog a faucet, and even showers can be unclogged using an air compressor. Changing whole buildings over isn't always practical (or prudent) and we will be running buildings profitably with galvanized pipes in the walls for the rest of my career. 

With that said, if you have the opportunity to upgrade pipes you do it. I would honestly focus more on drain lines than just the supply lines. Those old drum traps in particular are pretty awesome to get cut out and replaced with pvc.