All Forum Posts by: Paul De Luca

Hopefully this does not pass. @Brie Schmidt has been super helpful in fighting for landlord rights. Lets keep everyone informed when the next call to action is!

Seems everyday now more radical policies are being announced. The way I recommend my clients avoid problems is to only buy nice building in areas with high quality tenants, I cannot stress this enough for new investors in Chicago. A good golden rule is only buy a rental property if you would be willing to live there yourself. For example, my 4-unit in Rogers Park has never had a late payment notice needed in 8 years of ownership and of course never an eviction. I raise the rents to market every year and if someone leaves there is enough demand for multiple qualified applicants who are happy to live in a nice rental. On the flip side, there are other neighborhoods in Chicago where numbers look like great cashflow on paper but they have high eviction rates, even sometimes double digit eviction rates where you are heavily involved in Chicago eviction/tenant politics. In areas where the tenants can't afford the rent raise, you get stuck with either high vacancy/turnover or below-market rents. It's very important you NEVER let your rents get more than 10% below market rate with upcoming potential laws like this. It is not passed yet so if anyone has below market units I recomend you raise them immediately at the next lease renewal. Below are some excerpts from the new law.....

City Council lawmakers are hoping to once again bring to fruition the advancement of such protections for tenants this 2025 legislative session. Introduced by Alderman Desmon Yancy (5th Ward), the city’s proposed just cause eviction ordinance (“Record No. O2025-0017516”) would strengthen tenants’ rights in a concerted way, including by (1) requiring that landlords have just cause, such as nonpayment of rent or violation of the rental agreement, to evict a tenant or refuse to renew a tenant’s lease; (2) requiring that landlords provide tenants with relocation assistance if the tenancy is terminated through no fault of the tenant, or if the rent is increased by more than 10%; and (3) requiring property owners to register their rental units in a citywide registry in order to increase transparency in the private rental market.

Tenants who are terminated from their tenancy due to one of the causes listed are entitled to receive relocation assistance in the amount equal to five times the median monthly rent in the city for a unit with the same number of bedrooms.

Hello! looking for input on different areas around Chicago that are great for flipping (within 1 hour of Chicago). I have a few in mind however want to know other's opinions. Looking for entry points at or below 300k. 

Thanks! 

I've lived in my condo for four years and want to rent it out as an investment property. Last year, there was a leak from upstairs, and the maintenance guy opened a hole in my drywall to investigate. He removed wet insulation and a concrete-like chunk that felt sandy at the edge, possibly mortar. He said that chunk was already loose so he took it out.  I am not sure if the concrete/mortar piece could indicate any structure issue or I am completely over thinking.... To have peace of mind before renting it out, is there a third-party inspection service that can check the unit's structural safety and other aspects to protect myself and future tenants?"

Hi I am a first time investor with no experience or properties. I recently found a property I liked and would like to  first see if the deal makes sense. I want to do long term rental and will be paying cash to purchase. Do I need a realtor to assist me through the purchase? Do I need to setup a in person viewing of the property? What should be my next steps to move forward?

Hi All - my wife and I are moving from Chicago to Ohio and are trying to decide whether to rent out our 2bed/1bath condo or sell it.  We hope the home we buy in Ohio will be our home for the next 20+ years.  We do not need the cash for a down payment on another house, though it would provide us a little more flexibility if we wanted to put more than 20% down to get a more comfortable monthly payment or if we wanted to do any renovations.  We would attempt to DIY landlord - we have lived here for over a decade and have used and know many maintenance/service providers.  My job will still be based here so I will be back in town ~4-8 times a year, for what that's worth.  Our condo is in a desirable location in the Lakeview neighborhood near public transit.  I do not think finding good tenants will be a problem now or in the future.  I do not anticipate any near-term major repairs/upgrades, though the building is quite old (>100 years).  All major appliances, AC unit, water heater are <5 years old.  All new windows installed last year.

Relevant numbers:

Purchase price: $390,000 @ 3.00% rate, 20% down

Remaining mortgage: $278,000

Estimated sale price: $475k-$500k (I have spoken to a realtor)

Estimate rental rate: $3000-$3200/month (I have spoken to a rental specialist)

Current monthly payment (mortgage, insurance, tax, HOA): $2,200

Happy to provide any other info that might be useful.  Thanks in advance for any thoughts!