All Forum Posts by: Rukhsana Shahid

Moratorium and then months just waiting for a court hearing in Illinois. 

2 units are solid, pays the mortgage, the 3rd will result in positive cash flow. The rehab was more than expected. 

Hello, the rehab is complete minus a kitchen replacement of cabinets and appliances (with used items). Will have 3 rented units once the tenant issue is resolved. 

Hi Paul-

COVID eviction moratorium was the primary reason. During that time the tenants rental assistance came through and another round of assistance was in process. That fell through a few months ago, the lease is through October 2022. Tenant is a foster parent as well. 

At this point trying to determine the best course of action-court backlog, foster parent special case?, etc.

Rehab-60K-personal loan 11%.

Rehab Costs are financed through personal loan at 11%. 

Thank you for your feedback. The outstanding rehab costs are draining my personal finances. Is it acceptable though to carry these costs if the cash flow from 3 units is coming in? It would still take many years to pay off.

Thank you for your feedback. The outstanding rehab costs are draining my personal finances. Is it acceptable though to carry these costs if the cash flow from 3 units is coming in? It would still take many years to pay off.

I’m looking for advice on whether to hold or sell a 3 flat-first property. Note: This isn’t my personal property but I have a personal interest in it. 

-Purchased an older 3-flat in 2019 at $250,000, with an FHA loan, owner occupied.

-The rehab costs exceeded the exceeded initial estimate and are around $60K-all personally funded.

-1 tenant has been behind in rent from almost day 1, so to pay the mortgage. had to use personal funds from job income. Recouped most but 6 months from rental assistance. 

-Not generating positive cash flow from the rental, paying rehab costs out of pocket-about 1500/month. 

-Considering selling the property and paying off the rehab costs, but I will likely end up with 0 profit after capital gains and commissions. 

-If the property is kept, continue to pay out of pocket, but it’s possible to get to $1000 extra from the rental in about 6 months to pay towards the rehab costs. 

-Is there any reason to hold on to this property?  Can access a Heloc right now (refinanced property), thinking of making another investment that will offset the monthly loss on this property. 

Thank you