All Forum Posts by: Matt Holmer

I am interested in purchasing a 3/1 in a pretty decent neighborhood.  All the numbers make sense and I am ready to pull the trigger on the deal. 

The only negative about the property I see is there is no garage.  There is a long driveway that leads to a parking pad behind the house.  Even without the pad, the driveway could easily fit 4 regular sized vehicles and there is plenty of street parking.

Since the future tenant will be responsible for law care, I was thinking about putting in a small storage shed (like this) on the parking pad. Since there would already be a concert floor, it should be pretty easy and cost effective.

Does this seem worth the hassle? From the tenant's perspective, I think it would be a nice additional feature.  Without the storage shed, I have no idea where they would keep a mower so they would probably have to hire it out.  

The only downside is that it takes away some of the parking space, but I think there is still plenty.

Thoughts?

Thanks!

This is not legal advise, but Here is a link to the form approved by Scott County Iowa for providing the 30 day notice. You'll way to verify what method of service is required in your county. Likely certified and regular mail would be sufficient. 

Good afternoon-

I am reading over a potential PM agreement and want to confirm that the PM charges are reasonable and customary.

1) 75% of one month's rent for tenant screening/placement. (Seems reasonable)

2) 8% monthly management fee (Really 14%/year when including the screening fee, but seem reasonable)

3) No release fee 

4) PM hold security deposit in trust and keeps any earned interest. (No required to be returned to tenant in my state, reasonable charge).

5) Pet Deposit/Pet Rent:  PM will charge a refundable $500 pet deposit and an additional $25.00/month per pet.  The kicker is that the PM keeps the additional pet rent to compensate for additional screening and/or property visits. 

The last charge is the only thing that stands out to me.  Is this typically?  As the property owner, I am fine with allowing pets.  However, I'm not sure there is any additional work for the PM once there is a pet in place. 

For those who use a PM, do these seem reasonable?  All maintenance is done in house, supposedly at a lower rate then would be available through a private company.  I guess time will tell regarding that aspect.

Thanks for the input!

One thing to keep in mind when your price shopping an umbrella policy is that you'll likely have to increase your auto liability limits as well.  Where I am, State Farm requires a minimum of $250,000/$500,000 on the auto in order to write the umbrella.  It's not a big cost, but it is something to keep in mind. 

My understanding is if someone was to purchase a property in cash, pay for the rehab out of pocket, and then look to do a cash out refinance into a conventional loan, there is a 6-12 month seasoning period.  When does the clock actually  start? Closing, having the lease start, when?

Also, having an apprasial done prior to the tennant moving in (ie property is still clean) must be a positive. But if you can't refi for 6 months you'll  have to get another ordered by the bank right?

Thanks

My understanding is if someone was to purchase a property in cash, pay for the rehab out of pocket, and then look to do a cash out refinance into a conventional loan, there is a 6-12 month seasoning period.  When does the clock actually  start? Closing, having the lease start, when?

Also, having an apprasial done prior to the tennant moving in (ie property is still clean) must be a positive. But if you can't refi for 6 months you'll  have to get another ordered by the bank right?

Thanks

If your PM does not know what to do, I'd get a local attorney and then a new PM once the suit is completed.

While I am licensed in Illinois, I do not practice in Chicago and am not familiar with the applicable Chicago Landlord Tenant Ordinances so do not take this is legal advise. 

In my jurisdiction, the 5 day notice does not have to be personally served.  Under 735 ILCS 5/9-211the notice may be served 1) in person; 2) above service; 3) by certified mail or, if the property is vacant by positing.

Once you file the FED action, since there is a question about who is actually in the property, make sure you name the tenant and any unknown occupants as well.  If you still cannot get personal service, you'll need to file a motion with the court to allow alternate service.  

Good luck!

If all the locks are the same brand (i.e. Schlage, kwickset, etc.) then you can buy a rekey kit Prime-Line for about $10.  The are sold on amazon and are made for all the major companys. Schlage rekey kit

The first go round it can be a bit tricky, but after a little practice I can do a lockset (handle and deadbolt) in less then 10 minutes.  The kit is enough for 6 different locks and comes with 3 new keys which is prefect for my application.  Upon tenant changeover I'll just buy another kit and rekey the locks again.  

There are plenty of videos on YouTube of how the process works.  Here is an example: How-to

For this kit to work you must have a functioning key to remove the cylinder.

I do a lot of post judgment collection work and in my experience the post office only has a forwarding address about 25% of the time.  It has been so ineffective that we typically order a Skip Trace as the same time.  The wait is longer and there is a cost associated with the service (if they find them), but it is typically more successful.

If you know where they work or bank, a garnishment would be the first step. However, collections are always very difficult  I'd suggest trying to cone up with some type of settlement agreement and have that entered with the court .

Depending on the state and the related laws, you could put a lien on any real property that they currently own.

I am not sure about New York, but my jurisdiction has a debtor's exam and / or citation discover assets where the debtor has to come in and answer questions under oath regarding their assets and liabilities. most of the time, if you get to this point they likelky have no non-exempt assets

Getting a judgment is always the easiest part, enforcing the judgment is difficult. I guess this is why tenant screening is such an important part of the process.