All Forum Posts by: Mario Morales

I reached out to the tenant and will figure something out, but should i be concerned with the plumbing during the winter months?

I recently received a letter from People's Gas regarding a Landlord Reversion Agreement. After calling them, I found out that the gas for one of my tenants has been shut off due to non-payment. I'm the landlord of a 3-unit building and wanted to know if I should be concerned about any potential plumbing issues (like freezing pipes) or other safety concerns.

What steps should I take to protect the building, and are there any other things I should be worried about in this situation? Any advice would be appreciated!

I've used all of the above and a 1/3 of my tenants were found on facebook market place and have been with me for 4 years. Just have to be careful on how you respond

I am planning on rehabbing a unit in a 3 unit building. The other 2 are done. Just to throw some numbers out there, If it costs about 45K to rehab and rental income should be about $24000 a year. Is this a CoC metric or is it something else?

Thanks Kevin, I didn't know about the income approach being used for 5+ units. It is a multi-unit, 2 units plus a non-conforming basement so I get what your saying on an appraiser using the comparable sales approach. 

A friend has a two-flat investment property, with both units currently rented out. The garden unit is non-conforming but fully equipped with 3 bedrooms, a living room, and a full bathroom. It will also be rented out. When it comes to reporting this income, beyond the importance of being truthful on taxes, a few key questions arise:

1. Are there any advantages to reporting higher rental income on your 1040?
2. Will an appraiser disregard the income from the non-conforming garden unit when assessing the property for refinancing?
3. Is it likely that an underwriter will consider the income from the non-conforming unit?
4. Can the reported income to the IRS be leveraged to benefit the investor when applying for a loan or refinancing?

I'm considering two options for my property and would appreciate some advice:

1. Cash-Out Refinance and Then Sell: Cash-out refinance to access some of the equity, then sell the property to get the remaining equity.
2. Sell the Property Directly: Skip the refinance and sell the property outright.

My main concerns are:

• Fees: Are there more fees involved with doing a cash-out refi and then selling compared to just selling directly?
• Taxes: Could this strategy help in saving on taxes, or would it just complicate things?
• Overall Cost-Effectiveness: Is there any real financial benefit to taking this route, or is it essentially the same as just selling?

Has anyone gone through this process? Any insights or experiences would be greatly appreciated!

I have a good tenant who has been with me for a year, with the lease set to expire in October. I'm planning to renew the lease starting November 1, 2024. It took about two weeks to find the current tenant back in October. Although the rental increase will be modest, I am considering waiting until April 2025 to send the renewal, which would then start on July 1, 2025. Given the location near UIC, its a good time to get students in and the general population. 

 I'm also contemplating offering a 20-month lease, though I worry it might seem daunting to the tenant.

I have a mix use building. It's 1/2 a block from a busy intersection, however, there isn't much going on, on this block. My other units rent for 1650, residential. The first floor is rented out to a seasonal business, they pay year round, $1000 a month. I inherited the lease at purchase. I am planning on raising rent April 2025 when the 5 year lease expires. However, if he does not accept, I think I can rent for $1600, however I would have to convert into an apartment layout, bathroom, kitchen, etc. Which will cost money. I think if business renews at $1400, great, I do nothing. Is there an upside to renovating whether the business renews or not?

I am currently working with them, not sure if I will continue, as there has been some unfortunate issues with the LO out for a week, then their license in Illinois went through the renewal process. Which things happen but I am the one that has to communicate/ reach out to them. I think they don't understand that, it is important to reach out to clients when you say you are going to even if you don't have any updates.