All Forum Posts by: Kyle D Birch

@Michael Boyle hey Micheal. My buddy Antonio just cut down three trees for me real cheap. He's insured and he is still growing his company,but reasonable and does a great job.

Tell him Kyle Birch sent you 7732635674.

I'm 31 with a wife and two kids. We are both teachers making around $80k a year teaching in Chicago. Our portfolio is listed below.

SFH purchased 7/19. $350k 3.5% equity and we live in it.

4 Flat refinanced in 2019. Appraised at $427k and we owe $319k.

2 Flat purchased 7/19 appraised for $172k pre rehab, owe $154kk. Rehab is two weeks from being done.

The 4 flat has a non conforming basement rented and the garage is rented. Gross $6300 a month, net $3,200 a month after all expenses.

2 Flat has leases in place and will gross $3,000k a month and net $1,300.

We will have the rehab paid off in 2 months with our only remaining debt being student loans & 3 mortgages.

I have done 4 flips in the last 5 years which was used to purchase/rehab what we have and pay for a wedding.

My goal is to be out of the classroom in the next 3-10 years and be strictly investing/managing.

I am looking for advice & guidance on what to do next. I would love a mentor who has been down a similar path. I am willing to partner with or pay the right person for mentorship.

@Saul Trejo I am interested to hear what people have to say. I invest just north of there in Beverly & Morgan Park but have pondered venturing south as the pirces drop. I like some of the multi families in Calumet Park, but the property taxes look like they will eat the cash flow.

@Akeem Hutchinson

PM me. I know what it is like being in your schoes. I don't know how much I have to offer, but I will offer it.

@Sathish Sekar

I have a 5 flat, (financed as a 4 with a non conforming basement apartment) that I refinanced as an investment property because it had appreciated to over 20% equity. I used an FHA owner occupied mortgage to buy my SFH that I live in now. My wife, who was only my fiance in June put the mortgage for the 2 flat in her name as owner occupied.

I purchased 11147 S Longwood in Chicago on June 26th for $159,000 @ 4% down with all closing costs paid by the buyer. The home was listed for $200,00. The home was listed as a SFH with related living. The home has 2 hvac systems, 2 kitchens, 2 baths, 4 bedrooms and 4 entries/exits. The home bed the following repairs;

New doors

New windows

Fresh paint

Refinished hardwood floors

New central air

Block off doorway connecting two apartments

Legally change zoning to 2 family

2 New fridges 2 new stoves 2 new washers 2 new dryers

New bottom cabinets

New countertops

Install light fixtures in each room

Reglaze tubs

Replace bathroom fixtures

Install sub panel for 2nd unit which previous owner removed.

Replace all outlets & switches

Install vapor barrier in crawl Space

The cost of the job is as follows;

-New 2 ton compressor/new coil & supplies $1100

- Central air install $600

- Sub panel supplies & install $500

- All supplies & utilities $15,000

- Labor $6,000

- Appraisal $500

- inspection $400

- Lawyer $500

- Lawyer fee for zoning correction pending

When we began the rehab we noticed the previous owner created a doorway between the apartments and originally the was a brick wall between the two units. The neighbor of 40 years recalls it being a legal two flat prior to the previous owner purchasing.

Adjacent to the rear of the property is the Metra commuter train to downtown. This is a major attraction for tenants.

The building only has 1 meter for gas, electric, water so I will be responsible for this expense. I listed the units on Zillow as follows

3BR 1BA $1650 per month +$150 utility fee

1BR 1BA $1075 per month +$125 utility fee

I a weeks time, I had 50 calls to see the units. I only replied to text and emails and sent the application.

Today, I showed the apartment to 4 prospects and secured one for each unit. Tenants were eager to sign despite the apartment not being ready until August 15th.

Cash invested $31,000

Financed $155,200 @4%

Monthly payment $1,231

Monthly gas estimate $100

Monthly water estimate $125

Monthly electric estimate $125

Monthly income $3,000

Monthly expenses $1,531

I will add pictures once complete and update as I go.

The home appraised for $172,000 prior to rehab and as a single family home. I will be looking to refinance once the zoning is complete.

Hey Kobi,

I am combing through old post from BP Chicago and wanted to see if you have made any progress towards your goals.

Hey Lorenzo,

How did it turn out? 

Hi Brett,

Welcome! We should connect.  I am sure you could give me some honest tax advice and I could share with you my journey these past couple years. I am wrapping up a rehab on a 2 flat in Beverly that you're more than welcome to come check out and pick my brain. 

Talk to you soon. 

I have never heard of it being done. Also, when I was on the phone with the water company last week, they will only put the water in the name of the person listed on the deed. 

I have a 2 flat that only has one meter for gasn electric and water. When I list them on Zillow, I list the rent and in the notes section, I say there is a flat utility fee for water, sewer, trash, gas, electric, landscaping & snow removal. 

This isn't perfect, but it has allowed me to be competitive in my market, avoid doing taking the time/effort into a rubs program. By the time the tenant signs the lease, it reads the total rent including utilities.