All Forum Posts by: Shawn Rana

Hello all,

Came across an opportunity I was hoping to get some thoughts on...

I currently own one rental property in a condo complex.  I just learned there is another unit going up for auction in the same complex.  This is in Cook County, IL and will be a live auction in downtown Chicago.

I don't have any experience with auctions and know they can be risky.  However, because I own a unit in this complex I was able to get in touch with the association and learn there are people living there currently, and they are current with their assessments.  While this may cause its own problems, it does give reason to believe the unit is in fairly good shape.  Additionally, I completely rehabbed the other unit so I know what any potential repairs might cost me and can do most of it myself.  I would get a loan from the family to purchase the property and then make a decision later whether to buy/hold or flip.

Based on all this, any advice?  This would be my second rental unit and my first time buying a property solely for investment.  Also, any idea what additional fees would be included?  The auction company is The Judicial Sales Corporation - there is no mention of fees on their website but I am not sure.  http://www.tjsc.com/

-Shawn

Here's the essentials:

• ~900 sq.ft 2/2 condo w/in unit w/d - Mount Prospect, IL
• current tenant signed a lease 8/1 - 7/31, just asked me if he could have out 10/1.
• $1150/month rent - about average for the area
• $67k left on a $73k loan @ 5.75%, appraises at around $90 (so 25% LTV) - $900 PITI
• carpet will likely need to be replaced after this tenant leaves - had 2 large dogs
• all major appliances ~7 y/o and in good working order

I bought it in '09 - it was my first home purchase - and lived in it till summer of 2012.  the last 3 years of landlording have been pretty trouble free, but this will be the first time I have to make any sort of capital investment to keep the place rentable.  Not sure if I should go long or short...any thoughts?

Nothing runs on gas in this condo. Can you still buy electric-only furnaces?

I am paying the utilities. That's a great point about buying the furnace direct, Eddie - I didn't know HVAC contractors made their money off the sale.

Baseboard heaters could be an option but ideally I would get a combination heating/air device. Plus, the vents are in the ceiling.

Hi everyone,

I created an account on here about two years ago, forgot about it, then started meandering around the forums again a week or so ago since I bought my first property.

Anyways, I recently bought an REO condo and the electric furnace is very old (about 20 yrs) and very poorly taken care of. I was quoted at approx. $700 for repairs, and $1700 to replace it. I plan on selling or renting out the property in 2-3 years.

Please tell me what you would do in both a renting and flipping situation.

What's up, BiggerPockets!

I happened across this forum when I randomly decided to google "real estate investing forum", and I must say, it is a veritable treasure trove of information.

A little about myself: I'm 23 and getting my marketing degree from University of Illinois at Chicago in six months. I've been fascinated with real estate investing ever since my brother lent me his copy of Rich Dad Poor Dad three years ago. Ever since then, I've spent my time accumulating knowledge, honing my sales and communication skills, and finishing college.

My first deal will probably be when I buy my first condo after my lease is up. I plan to live in it for awhile, make it look pretty, find a renter, and buy another one.

I'm new to both REI and the forums, so I'd very much like to get to know some of the members here on an individual basis. So feel free to drop me a line and say hey, especially if you're in the Chicago area.

Good to be here!
~Shawn