All Forum Posts by: Keith Jablonowski

Anyone can sue someone for any reason or no reason at all.   There is nothing illegal about Subject To, Seller financing, etc in general.    Would be curious to know what the exact details of this lawsuit are?

Based on the lack of any information outside the number of units and downpayment I would have to say you are completely under thinking this deal....

Regardless of SFH or Small multi-family (under 8 units) deals that come onto the MLS are going to have tons of competition right now and the price will show it. You need to find off market deals. For small multi-family one method is to find tired old landlords. Drive around look for For Rent signs and unkept buildings and call the owner. If the number on the sign is the owner, bingo, you probably have a tired landlord.

Larger multifamily will not have the same retail markup, but even those right now have so much competition that most are not selling at a PP that is justifiable to an actual investor.    There are properties to be had but they are not easy to find.  

Also if you are able to find an owner that will seller finance you can get a rate lower than the retail lending rate and make the higher prices easier to underwrite and make money on. 

Prior to closing I guess he could.  What does the contract say about breaking the agreement prior to closing?

Lots of details missing, property class, location, etc.   Cash flow is low for 4 units IMO.  Try to shoot for $100/unit/month absolute minimum.   

 IL just made it illegal to disqualify a potential tentan based on if they are an illegal alien or not.   Not sure how you would properly screen then if they are here illegally though.   Another on the long reasons I live in IL and own rentals in another state. 

https://www.mystateline.com/news/local-news/illinois-law-requires-landlords-to-rent-or-sell-to-noncitizen-immigrants/#:~:text=Illinois%20law%20requires%20landlords%20to%20rent%20or%20sell%20to%20noncitizen%20immigrants,-by%3A%20John%20Clark&text=SPRINGFIELD%2C%20Ill.,the%20Illinois%20Human%20Rights%20Act.

When we started out investing we were both working full time plus (60+) hr a week jobs.   Our property manager basically handled everything.  We would only get a phone call, email or text if a surprise repair popped up over $300 or a turnaround was needed (they would consult on any potential upgrades during the turnaround).   They handle finding tenants, leases, collecting rent, repairs, evictions, code notices, rent increases, even submitting property tax assessemnt paperwork to the county.  They also help find new properties when we are looking to expand. 

Their rate is at the top end of what you typically see, but the freedom we have to continue to work full time bringing in new money to chase other investments with is well worth it.   

Just make sure your agreement spells out EVERYTHING that this particular management company will be responsible for.   Some charge a flat rate on collected rent.  Others you pay them maybe a little lower rate but they take the 1st month rent and/or deposit on every new tenant.   Depending on the average stay of tentants in the types of property you own one over the other may be better for you.  

My opinion is if you want to be an investor and not a landlord then a quality property manager is your most important asset.   Until one day you own enough properties to start your own property management company. 

It would be great to have a comprehensive list of those mentors that people here have had success with.   Seeing the differences between a mentor with thousands of students like Rod, Brad, Grant and more of a 1-1 mentorship would be interesting as well. 

Awesome, thanks for sharing!

That is $100-200/door profit per month, so a 10unit would bring $1000-2000 profit per month after all expenses, debt, etc.  This is just a guideline of course and much more goes into evaluating a property.  But if you can't make at least that per door with some quick calculations then usually time to just move on to evaluating the next property.