All Forum Posts by: Mark F.

@Jonathan Klemm thanks for the mention!  @Man Le Elgin and Aurora slightly different but also are very similar communities IMO. Both have a fair amount of C/B properties and a fair amount of older larger homes that over the years were split into 2-4 units and can offer great cash flow. 

I'd also suggest to reach out to @Chris Davis as multifamily properties in Elgin are his prime target area and he can provide some invaluable information. If there is anything I can help with feel free to reach out to me directly.

Mark

@Brandon Palmer I'm in a similar climate area as you and have absolutely ZERO problems renting in the fall or winter. It's certainly not my preference when I can avoid it but just finished up 4 renovations in Sept- Dec and all were rented out for top dollar before I even had them done or advertised them. 

I say let them go month to month, at a premium price explaining, the risk of filling vacancies during the colder months but truth be told, if you think there is a shortage of houses for sale its amplified even more for house rentals after many landlords sold in this high appreciating marked and they mostly sold to own occupants. 

Lastly, after the 1st year I let all of my rentals go month to month, the truth is the ONLY one that gets held to the strict terms of the lease if you go to court is the landlord, if a tenant wants to move, they are going to move lease or not.  

Just my $0.02 

Add another vote for @Mark Ainley for GC Realty....   

We'll be there, looking forward to it.

@Maurice Burnett what the City of Chicago requires for RENTALS does not translate over to what an Owner Occupant needs to adhere to, nor does it affect the sale transaction. So, in this case it is a legal 3br by the appraisal and sale, however the City of Chicago CAN disallow it as a rental if it does not meet their stricter rental regulations. It happens all the time with finished basements, bedrooms in basements, a homeowner can do it without permits but it wont pass a rental inspection without it being permitted and an egress window. 

As far as the code for older house vs newer builds and the rental licensing requirements in the City of Chicago I've never dug into them to see if there are any differences or not, sometimes things can be "grandfathered in" other times no. I don't invest in the City of Chicago but @Tom Shallcross or @Mark Ainley do and manage a good amount of units there and if they say its required, then by golly I'm sure its required there. Again, this can be and is City specific. 

@Maurice Burnett as @Tom Shallcross mentioned it is required in the City of Chicago as a city specific requirement however no where in the MLS nor IBC (International Building Code) is a closet required for a bedroom. Many older, turn of the century houses were not even built with them and many people wrongly assume that a room without a closet won't qualify a bedroom. There are minimal requirements such as size, egress, electrical outlets etc that are minimal required to classify as a bedroom but a regulating agency, such as City of Chicago can have stricter guidelines.

Another example in the link that Tom provided, the min bedroom size must be 110sqft, where as the IRC, Section 8 and my local municipality all require 70sqft with no less then 7' measurement in any direction.

I 100% trust what Tom or @Mark Ainley tell you about properties, especially in the City of Chicago, they are the masters in that domain without a doubt. 

https://www.hunker.com/1371146...

@Jermell Shavers IF the tenant has enough income and at 30% of their income there is room to pay over the HUD listed amount the Section 8 Caseworker can/may allow a rental rate over and above the threshold. That's why for each person they, Section 8, has to do a calculation for each person on each property before they say yes or no from what I've experienced.

There is an investor on here that specializes on Section 8, her name is @Jennifer Donley. It seems I'm not able to tag her on here since she and I are not connected. Perhaps reach out to her and/or read some of her posts and you may get more definitive answers. 

https://www.biggerpockets.com/...

@Jermell Shavers the amount listed on the HUD website is typically the maximum amount that Section 8 will approve but that amount includes allowance for utilities. Now if you are paying all the utilities that might be the rate that they will pay, if the tenant pays the utilities the housing authority will use a worksheet to compute the estimated utility costs and the tenants income to come up with an approved rental amount.

I typically use $75 for electric, $75 for gas and $50 for water/sewer/garbage and am pretty close to what the Section 8 case worker comes back with, also once I know that number I also put in for a little more than that and let them come back with the maxim amount that will be approved.

Just my experience in dealing with Section 8 IN MY AREA, your local office may certainly operate differently.

Mark 

Hi @Juan Camilo Lovera, I am a local investor in Elgin, not far from Rockford and my wife is Colombian, in fact we just got back from being down there there (Bogota) visiting family. 

Lets connect..... 

Mark

Thanks for the mention @Jonathan Klemm and if there is anything I can help with let me know, I live, work and invest in Elgin and surrounding areas but I do focus primarily on SFH. in addition to @Joe Mueller another great resource is to reach out to @Chris Davis as he is also in Elgin and is focused on multi units. Both Joe and Chris are stand up guys and were my mentors when I first got started. 

Mark