All Forum Posts by: Tomasz Kaminski

@Chris Seveney

How do you consider property value if you cannot go inside to evaluate the interior condition? Do you consider worst case scenario and base your potential offer based on this?

I'm looking locally at my county auctions and there's properties for sale due to foreclosure. Considering that there are people living there already, it has a potential tenant (of course I understand the potential pitfalls there as well). 

Does someone have experience buying a foreclosed property and keeping the existing person/family living there and converting to a tenant? 

I'm considering this, however want to do my due diligence from both any outstanding lien side as well as at least a walk-through/evaluation of value of property as well. I'm considering giving the existing person who lives there say $50 for 30 minutes of their time to look inside for a few minutes, chat about their situation to see if they meet at least the minimum for consideration for being a tenant, etc. 

Thoughts about this?

@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?