All Forum Posts by: Shem J.

@Ryan Marker I'd suggest taking another look at the illinois secretary of state website. The cost to start an LLC, or corp has been reduced. The new pricing took affect at the beginning of the year. It may be worthwhile to start your company for liability purposes.

Thanks @Joseph Gozlan! 

Thanks @Account Closed for the feedback!

Hi BP, 

I needed some help thinking this thru. I was approached by a client for help in deciding what to do with a property she has. Its a Brick 6 unit all 3 bedroom units (in Auburn Gresham). 1 unit is currently rented for $1150 a month. The remaining 5 will rent for the same once occupied. Shes looking to sell but is also considering trying to rent the remaining units out and keep for cashflow. She has minimal experience in Managing property/Rehabbing/Tenant screening, which is where I come in. I'm trying to think of a win/win but not sure how to structure it. I didn't want to go the retail route by buying it outright since I'm already connected to her and shes considering partnering with me. But I'm considering offering to get the units rehabbed(Cosmetic $2-3k each) and rented. Im not sure how to structure it, do I ask her to allow me to take over her current mortgage payment ($2500) and workout a price shes happy with, while getting the units up to par and rented then pay her off once we've added value and increased cashflow? How do I protect my interest, in the event she likes the new income more than the future lump some payment? Should I just deal with the rehab while she continues to make the mortgage payment? My mind is all over the place and I need some ideas. Thanks BP

Hi Aaron, I typically fill out a FOIA (freedom of Information act form) with the local municipality asking for a copy of the village inspection reports and in my area(south suburbs of chicago) I can typically see if anything is out of code or has been brought up to code. You can also ask for recent permit request and that will help see if licensed contractors pulled permits or home owners completed the work. Hope this help in your area!

SFR in Calumet City, IL

3 bed, 1 bath on 1 Lot

3 Car garage on 2 lots

Purchase price 18k, Rehab Cost 24K

Rented out House for $975. Tenant Pays All Utilities.

Garage is owner occupied for material storage. LOL

@ Ryan M.

I vote sell it as well. Cut your losses Asap.

Hi Emily, 

I agree with @Florian N. as a starting point. Ive had to do this with several of my properties. Id also suggest adding a fan in addition to the Dehumidifier just to help circulate the air. After a few days of letting the dehumidifier run you'll notice a difference and it should be ready for prep and paint. Continue to run the dehumidifier during that process also, so that the paint will dry. If the moisture continues or gets worst you may have to consider what @Adam Drummond had to do. Good Luck!

Thanks for sharing @Larmon Cummings Jr. 

Welcome To BP Michelle