All Forum Posts by: Tom Shallcross

@Jonathan Klemm - yes will email the deck and yes it's for all of Cook County. I wouldn't overspend to hit the numbers, but if you are already doing the rehab it's pretty much a no-brainer to fill out the paperwork and go through the process. There are tenant income maximums for the affordable units and also need occupancy cert, but all in all it's not a big lift. 

If your property taxes are 25k and you get a 25% reduction on assessed value, taxes will likely go down by about the same amount (though not a one-to-one ratio). So let's assume that's a savings of roughly 6,250/yr. It's also a 6,250 coming off the expense column for NOI so if you take that in a 6 cap area the building value increases by over 100k (6,250/.06).

@Jerry N. - I believe the program you are referring to is the the Cook County Affordable Housing Special Assessment Program which has two main tiers. The first tier is where you spend at least $8/sq ft of the building in rehab (so you have to spend at least 32k on a 4,000 sq ft building) and keep at least 15% of the rents affordable. The second tier is where you spend $12.50/sq ft and keep at least 35% of the units affordable. The first tier receives a 25% reduction on their assessed value and the second tier earns a 35% reduction in their assessed value. 

Below are the affordable requirements - notice it's one blanket number for all of Cook County 

Studio - $979/m

1 Bed - $1,049/m

2 Bed - $1,258/m

3 Bed - $1,454/m

4 Bed - $1,623/m

Also note that if you have subsidized rents like Section 8 they base it strictly off what the tenant pays, not the subsidized amount, making it easier to qualify. 

I've recently gone through the process and have a nice 50 slide power point from the county walking you through each step of the application process (it is too big to post in the forum) so hit me up if you have questions. Also CIC has been a huge resource for this program and helped multiple folks become aware of it in Chicago and surrounding burbs. 

Here's some additional details: https://www.cookcountyassessor.com/affordable-housing

@Nolan Mahoney - you can search under https://www.biggerpockets.com/events. In addition, Chicago REIA has a ton of meet-ups in Lombard/Oak Brook and we also keep track of a huge chunk of the Chicagoland events at https://www.straightupchicagoinvestor.com/chicago-real-estate-investor-meetups. Feel free to reach out directly with questions. 

@Boris Grinberg - Jim Kolke and his team at Pinnacle can help - https://pinnaclepropertyinspection.com/. Let me know if you'd like a direct intro. 

Just reviewed the current attendance list with @Mark Ainley... STACKED with Chicago talent! 

Looking forward to it and please register before our 100 tickets are completely off the table. 

Thanks @John Warren. Hi @Jennifer Garcia - yes I'm in Jeff Park and also very active up here. Feel free to DM me and can look to help out and/or get you on the right path.

@Talena Suggs - sync up with @Mark Ainley. His company GC Realty is heavy in that area. 

@John Warren - $7-9k

As @John Warren mentioned, the old-school timber posts and pier is best left for someone looking to gut the place. Below is a pic for reference and if you're just starting out you should punt on these.

Going back to the original question, if you do have issues with an older brick building, a lot of times running the steel I-beam across the basement in place of the old wooden one which has bent over time, gets the job done to minimize sagging on the first floor and sound-up the foundation. 

@Frank Naujokas - I'll DM to you. 

@Sanat Bhandari - Chicago is a little bit of its own beast due to the complexity of our RLTO Ordinance. Therefore, every year attorneys and members of the Chicago Association of Realtors post an updated lease for housing providers to ensure compliance with RLTO and help set housing providers up for success. This lease is typically the standard baseline and then additional covenants can be added.