All Forum Posts by: Tom Casey

@Michael K. I am pretty sure based on comps that it would sell for 200-225K. We're almost done with the project, just looking for a contractor to complete our second bathroom (gut)

@Henry Lazerow HELOC is definitely something I will be looking into as well. Thank you!

@Michael K.

For sure. I'm going to do my best to pay the debt down ASAP so I feel comfortable enough to make the move. I was thinking it would be ideal if I can secure a loan that pays for the rehab project so that I don't need to put financial strain on myself again.

@Michael K.

Thanks for the advice. Paying off the CC debt is definitely my priority. And I think my job will work well while I'm getting started as an agent because it's a nice guaranteed check every two weeks. I figured it's gotta be tough in the beginning generating leads.

@Dave Foster,

Thank you for the in-depth response. So correct me if I'm wrong, but it sounds like it would be a good option to pay down my debts with income from the two jobs, do a cash-out refi on our current property/residence, get an FHA loan with a low down payment that also covers a rehab project, rent out the units once it's rehabbed while staying in our current residence, and then decide if we really want to sell it. Does that sound like a reasonable plan or am I missing something important? lol

Hey BP Community,

I'm a new investor on the north side of Chicago and I am in the final phases of a gut rehab of a condo unit that is my first property. Bought at $155K, $50K rehab, hoping to sell/exchange at ~$215K. Initially, my plan was to BRRRR it, but I have decided that I am not interested in holding onto an individual condo unit and I would rather have a building (ideally 3- or 4-plex). I have a few questions about the 1031 exchange because I'm wondering if that's my best option.

Also, something I think is important to share for this post: I have zero net worth, about $40K in credit card debt and about $25K on a low interest loan. However, I have a very steady job as a firefighter and I just passed the Real Estate Agent exam so I will be working as an agent within the next few weeks to pay off my debt more rapidly with extra income from that. 

Anyway, here are some of my questions: 

1) How much will I have to front for the down payment on the new property? Do 1031 exchange guidelines require more down payment than other standard forms of buying?

2) Would it be possible for me to secure a loan that would pay for my rehab project? It would be unbelievably helpful to not have to pay completely out-of-pocket again like I did for my current project (it's the reason I have CC debt at the moment). If this is an option, it would take so much financial stress out of the equation.

3) I understand that to complete the process of a 1031 exchange, I will need a "qualified intermediary" to act as an escrow agent so that I never touch the money when I sell. Any recommendations for who would be a good resource that I could consult with for this service?

Any other advice would be greatly appreciated. Also, anyone who is looking to connect and network in Chicago, I'm just starting out my real estate journey so I'd love to bounce ideas or just plain make new friends in the field. Thanks for your time in reading and thanks for any feedback. I am super grateful for this community and everything you guys do.

Best,

Tom

Hey Andrew,

What neighborhoods are you currently looking in? Is your agent/broker helpful from an investor standpoint? 

I am looking to make a move on a multi-unit in Chicago as well sometime over the next couple of years and it seems to be tough to find but not impossible with the right resources! I am in the process of renovating my first ever property and this is what has been true for me: Once you come up with a timeline and budget for your project, double them both and it should be pretty accurate! lol

But if you ever need connections for construction/rehab once you settle on a place, feel free to reach out. So far, my floor guy has been the star of the show, did an incredible job for an awesome price! 

Anyway, good luck finding a place and feel free to message me at any time you want to chat about real estate in Chicago. I'm new to the game and always looking for people in Chicago to connect with.

Best,

Tom

@Brandon Seyferth Thanks for the recommendation! I'm going to try my best to mend this relationship in the coming months for sure. 

I have formed a good working relationship with my GC. The project overall has been drawn out quite a bit and has cost around double what I had initially estimating, but I definitely take most of the responsibility for that. This has been my first project ever and I'm trying my best to learn as I go. So I do think that any issues that have arisen have mostly been admittedly due to my incomplete planning and some lack of vision. 

That said, I think this contractor could have been more organized and clear on scope of work, prices, and timeline. Might be good for you to reach out to him and see what you think though! Let me know if you'd like for me to send you his contact info via direct message. Always good to have multiple contacts for this stuff anyway. 

Thanks for reaching out!

Tom

Hello BP community!

I just closed on my first property here in Chicago (Roger's Park neighborhood) a few months ago. It is a 2bd 2 ba condo unit in a building with 10 other units. We have been in the process of a gut rehab for the last three months and we are nearing the end phases. Everything has been going relatively smooth considering it's my first time doing this, just trying to learn everything as I go and pick stuff up along the way. 

The main issue that I've had as of late is that my upstairs neighbor/chairman of the board is constantly complaining about the "noise and clutter" along with other things. I was very nice to her from the beginning, but she kept pushing and pushing. Eventually, I just said that she needs to take it easy as this is temporary and we are almost done. A couple days later, she filed a formal complaint of "violations" on our HOA website.

I just think that this lady is going to give us some major problems moving forward, especially when we rent out the unit. It would be great if I could consult with an attorney about this situation, but also just to form a good working relationship for future projects and investments.

Best,

Tom

Hello all!

I am a first-time homeowner here in Chicago. We are well into a pretty intense rehab on a 2bd 2ba condo unit in Roger's Park and we're looking to connect with anyone who can help us out with some of the work that still has to be done. We will be looking to paint the entire unit white with at least one accent wall, and dark green for the two bathrooms. We want to do all the doors and new trim white as well. Also, if there are any bathroom specialists, please feel free to reach out and take a look for a quote. We have not started any work on the bathrooms yet.

Thanks in advance!

-Tom