All Forum Posts by: Sarita Scherpereel

@Perry Leon 

Focus on the location you want to buy in. Too many people will comment for pricing, returns and even ARV from all over the world. But you're best advise is going to come from the community you plan to invest in. Right now, this is a great time for out of state investors to attend the virtual meet ups. You will learn the most from area leaders this way.

My favorite thing about Chicago investing is ARV. Our market is competitive and often the COC numbers won't work as well as other markets. However, our ARV is awesome in most neighborhoods. Chicago is a city of Neighborhoods. Rents, pricing and ARV is individualized in these micro-economies. Make sure you understand that in San Diego. That will help guide your numbers. The BP calculators are great but don't show full property potential.

You can look at realtor's on BP that specialize in San Diego. Try to find someone that can mentor you. You need a relationship that isn't just transactional but more of a partnership for how to run and grow your business. 
 
 

@Perry Leon which city are you wanting to start investing in?

I'm so sorry this happened to you. It is the biggest risk of owning an illegal unit in Chicago. Are you in Chicago proper or one of the surrounding villages? Just want to make sure before I speak on this. 

After the city finds out about the violation it's very hard to keep the unit as illegal. Duplexing down will allow you to rent this legally. I think that's your best option at this point. You will likely need to hire an architect for permits especially since the city now has you on their radar. @Samuel Pavlovcik can you chime in on this? 

Putting in the work in the lower lever might have to be removed/redone to make it conforming to a duplex or an illegal unit. Either way, this will be expensive. Without knowing what you've done at the property it's hard to give an exact number. Please contact your realtor and an architect on how to get out of this cheaply. 

Other options are to rent then space out in other ways. I've seen artists rent space as a studio. Especially in Logan Square and Pilsen. The risk in using this as an Airbnb is that if they city comes back and someone is still living in the same. An illegal space should not have someone living in it. 

For me, there are a few things I need for a client to by an illegal space. I really want them to be able to get full value out of the building if they can't rent the space. 

@Ty Rainey Start attending local meet ups. A lot of groups are still doing things just virtually during this time. I actually feel like it’s easier to get a good read of the markets your u retested in that way. You can connect with experts that can guild you towards the best options.

I would also start following local realtors on bigger pockets. See what they are saying about their market. It’s a great way to start figuring out what you want before having to talk to a person. Best of luck! 

@Lorenzo Martinez no problem. I had a client today that missed insurance. It’s not a deal breaking error but every little bit helps to understand the full picture of value. I hope this deal works out for you!

@Gio Rodriguez I'd follow up with whomever @Jonathan Klemm referred you to. Jonathan is very familiar with WI and has a great assessment of character. I would trust anyone Jonathan send me to. Best of luck. 

@Lorenzo Martinez you did it right. Just wanted to make sure. :)

@Gio Rodriguez what cities/towns specifically? 

If you're not really sure and kind of open to location look at the BP directory. I recommend looking at local agents in the areas of interest. Then look at what they say on Bigger Pockets. See how might be a good fit that way. 

https://www.biggerpockets.com/real-estate-companies/find-real-estate-agent-directory

@Lorenzo Martinez I didn’t see anything for electric water gas and sewer. I’m not familiar with your market but in Chicago there are those expenses we add. Even if it’s a general public electric line.

Hi Jeremiah! Some GCs here in Chicago specialize and work on different types of projects. Sometimes it depends on their current project load. They might not be able to take on gut rehabs or maybe just a bathroom rehab. Once you're under contract or have a property picked up, post on PB the type of jobs you're looking for them to update. You'll want to talk to several GCs to find the right one for you. Best of luck.