All Forum Posts by: Tomasz Kaminski

@nick 

@Nick Barlow I have a question for you, maybe you can answer this. I live in one half of the duplex and rent out the other. The common utilities (water, common electric, gas, waste, trash) is all included in the rent. It's not broken out. How would the best way to cover the expenses? Would the utilities only count if they are specific unit (gas for example for the unit?).

Thanks,

Tom

 It's a notice of no renewal that i provided in writing. Sorry for the wrong wording. 

 So the acknowledgment is only verbal. I asked him to sign the document and give me a copy so that i have proof that i have provided him the notice. Is this required ok Dupage?

a bit more background, the tenant is has had some compliance issues and neighbors have complained about noise level and loitering by their guests. I do plan on remodeling the unit and just want them out so this work can be done.  I'm located in Clarendon hills. Follow up question: if an attorney is needed for eviction, do the courts currently allow for reimbursement of attorneys fees for tenants that are evicted or is this something i will have the cover?

thanks all for the quick feedback.

The tenant has a lease that end June 30,2022 and I know I need to provide him a "notice to quit" termination letter. I have provided this, but he has refused to sign simply saying that he doesn't want to sign and will sign when he moves out. I am concerned this may end up with me forcing an eviction. What should my next step be? Is a certified and proof of receipt postage sufficient to meet the requirement to notify the tenant? The property is located in Illinois is DuPage county.

Thanks all,

Tom

As part of your assessment, consider taking to a tax expert regarding deductions. I will say that will the FHA loan I have on my property, I'm not necessarily cash positive during the year, but at tax time I get a 4 figure check from uncle sam from all the deductions I get (especially depreciation). Keep this in mind, as it completely was a learning experience for me and is a big chunk of what I consider profit (on a yearly basis).

I actually use the procedure from BP on tenant search and screening. You may have to adjust depending on the location, price point, but it's a good start. I use mysmartmove.com which is a transunion service for information. There is always some "gut instinct", as I have broken some rules (accept tenants with eviction records) but have made other adjustments to compensate. 

Ultimately it's a function of do you trust yourself to make a good decision and are willing to put I'm the work (liability always falls on owner whether the tenant is good or not), or do you want to pay the 1 or 2 month rent as fees.

I do want to challenge the idea that there are no 2-4 unit buildings in Clarendon hills. Just south of 55th there is a small 3 block range of unincorporated buildings that are mostly in that designation with a few single family homes sprinkled. I would also comment to consider Darien, Westmont and that area, though I'm not confident on the school situation.

House hacking is working for me with effectively the same strategy. Key to remember is to find good tenants and do proper screening and evaluation.   

@Michael Plaks

Thanks for the information. Is there a resource here on BP for financial planners?

I currently have (1) duplex that i'm house hacking in, collecting about half the mortgage as payment and covering the other half with my day job income. I'm also putting away money into 401k (roth) from my job as it's giving away free money matching.

Unfortunately the support from work is not giving me adequate tools to plan my future considering my real estate and my goals.

My plan is to keep the real estate until i can suck out all the depreciation (or most) then exchange like-kind property to not have to pay that money back. Not considering passing any of this in inheritence (no kids, plans) so i just need to maximize my returns.

What is a good estimate to use regarding retirement funding from both rental property and 401k? Any tips?

Finally, this may be a legal question (changing based on location). Would i be able to exchange a "like-kind" property from this duplex to a single family home, keep it an investment property and move into it say a year or two after? Would there be any penalties or fees that i would have to pay back for this?

Thanks for the help,

Tom

I completely agree, i won't let someone rent with the "prospect" of work. Unless they have a solid job lined up, i'm walking. It is odd that i have my first 2 renters in the same situation (one accepted, one prospect).

Was just curious if there's a new rental scam i'm not aware of. I'm not aware of that many of them since i'm new to the game, but want to be cautious.

Thanks for the advise @David Stumpf and @Mitch Messer.

Tom