All Forum Posts by: Russell W.

@Luke Babich

Wondering why you need to core through the concrete floor... are you intending to install the furnace/evaporator coil in the basement? Here's my suggestion; I just had these installed in two units in my building, already planning a third. It's a self contained heat & AC unit. I removed a window in a closet and installed the unit in the opening. The beauty about this system is you don't have a condensing unit(s) outside the building, nor do you have all the refrigerant lines running to it.

This assumes of course you have a window large enough for the unit to fit in (this one was 45"H x 29"W) and enough floor-to-ceiling height to run the duct between rooms. Worked out very well and the tenants are very happy with them. It's another option to look into if nothing else. Let me know if you have any questions

(ignore the unfinished state of my project)

http://www.magic-pak.com/

Hey guys, this post could also be applicable to the Rehab and Renovation forum but I'll place it here for now.

Considering an FHA 203k loan for a 4 unit building. Wondering whether or not the "holding costs" of PITI can be included in the loan... essentially using the renovation part of the loan to not only pay for the construction aspect but to also pay the holding costs while the renovation is taking place. Not sure if that makes sense the way I'm explaining it. Basically I would otherwise not have the cash to make the mortgage payment each month while renovating without renters occupying the building.

Anyone know if thats ever an option? Or do I need to have the cash reserves to make mortgage payments out of pocket each month until the renovation is complete? Thanks for the help

Thanks for the input Brie. You bring up a great point about what happens to the leases after moving.

Agreed that they are not strict, and I follow them regardless as good practice. Was just wondering if there was an additional municipal code outside of the RTLO that regulated OO buildings. Thanks for the info

Hey everyone, so like a lot of people here on BP I live in my rental property as an owner-occupant. My question is in regards to the Chicago RTLO. It states that the ordinance covers:

With a few exceptions, the first of which being 

If not in the Chicago RTLO, how are these properties governed? Section 5-12-160 seems to only cover unlawfully removing tenants. Are owner-occupied buildings regulated elsewhere? Thanks for the help!

Hey guys, hoping for some insight on the "refinance" part of the BRRRR strategy.

I bought a 3 unit building about 6 months ago, 6% down. I had a discussion with my lender today to explore the possibility of a cash out refi after a year or so. She said that with a loan-to-value that high there is no way of pulling cash out, not without a huge leap in appraised value after the "rehab" stage, closer to 20% equity. 

Who here has applied the BRRRR strategy with a low down payment purchase, and did you have issues gettig past the LTV? Thanks in advance

I'm about to close on a small multifamily building with 3 tenants, each of which have re-signed for a year. The previous owner charged a move in fee, did not collect a security deposit.

Is it possible (or recommended) to collect a security deposit from these current tenants once I take ownership? Or would this require a new lease to be signed? I imagine I would have to do a walk through with each tenant to document the current condition of the unit so we have something to compare to upon move out.  Thanks for the help

I'm looking to buy an owner occupied 3 or 4 flat in Chicago. Of the properties I've visited with my realtor it seems that about half of those properties will be vacated at the time of the sale. As a full time real estate investor I could see this as an opportunity to do any rehab and select my own tenants right away, rather than inheriting someone elses. 

However, for a first time investor like myself, who doesn't have huge amounts of capital to float the bill for a few months while finding tenants, I see it as a daunting speed bump. What are your guys' thoughts on the situation? Is it still worth the risk? How quickly do you think the process could be to vet out potential tenants for the first time? Am I looking at paying the mortgage without the help of renters for a month? 2 months? 3?

Understandably each market is different in terms of demand for units, but just trying to get a basic idea of what I might be getting myself into. Any creative ways around this? Thanks for the help!

@David Dachtera  ideally looking for one whose office is located in downtown Chicago, as that is where I live, and thus deals with the city market. But if you know of one who is in the suburbs but still works with investors in the city that would be great.

@Mark Ainley thanks for the rec! I will reach out

Hey guys, I;ve been a member of the site for a few months, mostly doing reading rather than posting, but am looking for advice as I'm getting closer to purchasing my first property. 

Not sure the protocol here on the forums for recommending specific individuals but was hoping for a couple rec's for real estate attorneys in downtown Chicago. Specifically, (not sure that it makes any difference) I'm pursuing an FHA loan purchase so it would be ideal if he/she has experience with those particular contracts. Thanks in advance for any help