All Forum Posts by: Russell W.

@Adam Bandola just sent you a PM 

Hey Adam, welcome to BP and congrats on committing yourself to real estate investing. In my opinion house hacking is the best way to get a start so you can receive the "on the job" training of being a landlord. If you can make it work financially I think aiming for a 4-unit is ideal, to get certain economies of scale. Like others have already mentioned, it can be difficult to get FHA financing to work, but that said there are still other low-down payment loan products out there. In terms of what areas to invest, I put an emphasis on being near a metra or L station, not only for the convenience of myself commuting but also because many renters will look for the same. Identify a few properties you think you *might* be interested in, then go drive around that block and neighborhood to see if it's a place you yourself would want to live. Remember, you won't need to live there forever, maybe just 1-2 years as you get your feet under you. Best of luck and feel free to reach out any time.

I’m with @Evan Polaski, burn those cabinets and bury the ashes. Painting them might seem like an easy fix, but it will scream cheap makeover on a house that, according to your ARV, deserves a much higher quality of finish.

Energy efficient appliances & hot water heater, high efficiency furnace, etc. might make for an additional description in your rental advertising, but I would agree that it’s not going to command a higher rent or attract more applicants than a similar rental without these features. Unless there is no cost premium to you as the owner, then typically it doesn’t make sense (not withstanding you just feeling a moral obligation to choose higher efficiency)

Another good book for starting out is Landlording On Autopilot. It’s a bit dated but provides a lot of practical steps 

First question I’d be asking is why is tenant 2 so eager to sign a lease. Is it because they’re unable to sign a lease elsewhere? Because their current landlord is not renewing? Because they’re breaking a lease early and need to find a place ASAP? Perhaps none of that is true but it’s something to look into. Whatever additional rent you are able to get out of them may not be worth the hassle in the long run. And as Colleen said, look into whether or not you are legally able to solicit bids for different terms in your area 

Unless you plan on opening walls to re-route plumbing, you may be out of luck on splitting up the hot water from common to individual. You mention everything is gas heated, but also say the apartments have electric baseboard heaters. Are the baseboard heaters just supplemental, or are they supplying all of the heat for the apartments? If the latter, tenants might be paying for their own heat already. Otherwise, as has been mentioned, your best bet is probably RUBS- Ratio Utility Billing System, whereas you would bill back the tenants for gas bills. 

Hey @Gregory J Galica Sr welcome to BP and to the forums. You’re on the right track with getting a good base for your education. I invest in the Northwest side in Irving Park, not far from you. One resource I’d recommend is the Northwest Side Building Coalition. It can be great for finding other real estate professionals in the area. Feel free to reach out any time 

@Dan L.

You raise a good point with your concerns on finding someone to install/maintain it. Just depends on the area where your property is located. I would think you could find a contractor in any reasonably sized metropolitan area, and you can even reach out to the manufacturers for qualified installers in your area. Regarding the metering, it would be no different than your other gas appliances; each apartment will have one individual gas meter for all of the appliances within it, not for each individual appliance. I.e. 4 gas meters for 4 apartments. 

I'm sure you've already done this, but I would strongly recommend talking to one or two more electricians to get their opinion on splitting the electric. It may not be as easy as your first guy makes it out to be...  Think about all the branch wiring that is likely shared from one apartment to the next. It's going to require a lot of new wire pulling and without access to common junction boxes you may be in for a headache. Just food for thought.

To the question at hand, splitting gas should be significantly easier. Depending on the number of appliances and types, you have a maximum of 4 locations per apartment to take the gas to; furnace/boiler, oven, hot water heater (if not common) and gas dryer (if provided). You mention wanting to keep radiant heat but also wanting to purchase 4 new furnaces. I assume you mean boilers? In my opinion trying to retrofit existing radiators from a common system to individual isn't worth the effort. Since you mentioned the mini-split I assume you're open to considering a traditional split system as well, and one other option is a "packaged unit". I've recommended them before on the forums because I've used them and like them so much. Take a look at the link below for just one of the manufacturers. They require ducting like a traditional system but the benefit is, as the name implies, it's one piece of equipment. And although you may not need it as much in upstate NY, it has the option to have cooling as well. Something to consider.

Edit: won't let me post a youtube link. Lookup Magic Pack, Comfort Pack, Condo Pack, etc.