All Forum Posts by: Victor So

Hey Bryan Ju ! PM me!

Hey Braden Downs ! I've had similar issues as you. I just closed on a gut rehab condo with my fiancée and my father (contractor) is almost done with the rehab. My fiancée spent countless hours researching everything there is to know about kitchens, bathrooms, lighting, etc and since it's this place is going to be our first place together after we get married, she doesn't want to share it with anyone else. I've suggested house hacking one of the bedrooms since it's a fairly spacious 2 bed, 1.5 bath condo but she was super against it at first. However, after showing her an excel spread sheet of how much income we could make off of renting just one bedroom and essentially almost live for free, she is now open to house hacking. I think with proper explanation, persistence, and continual persuasion, there is a possibility your wife will eventually bend. Just my two cents. ;)

Hello BP! I'm about to house hack my condo by renting out one of my rooms. After collecting rent, how much of it do you set aside for future maintenance and repair costs such as cap ex and how much of it do you keep? I'm sure the costs will vary depending on what type of property you have but is there a general rule of thumb you follow? Any advice would be appreciated! Victor

Hey Amer Mallah ! I just purchased a condo to live in for me and my fiancée recently in Edgewater. We bought a gut rehab place along the lake as well. The rehab is almost complete. I've been trying to let everyone know this, but if I could go back, I would have done a few things differently in regards to rehab. I would have contacted the HOA earlier and asked about what was allowed on rehab. Our HOA has many restrictions on what you're allowed to do for rehab. For example, we weren't allowed to put stationary appliances in front of the baseboard heaters just in case they needed to do repairs on them... which meant that in certain areas of the kitchen, we weren't allow to put appliances there. So, in our situation, we actually had to put wheels on our oven and other floor cabinets so this would not be an issue. Also, we had to fight the HOA to tear walls down in the kitchen and there were many other little issues that were frustrating. It is also sometimes a pain in the butt trying to rehab a unit in a high rise since you need to reserve elevators frequently for contractors to use to throw away trash, bring in deliveries, transport supplies, etc. and the doormen get annoyed. And the property managers usually have their eyes on you and it's sort of bothersome. So, in conclusion, I would just check with the HOA and make sure they will allow you to perform the renovations you want in the building. Have your designs ready and present them thoroughly to the HOA. Hope this helps!

Aside from all the negatives (corrupt politicians, etc) and everything else, I love Chicago. I was born and raised here and we have an amazing city. Awesome skyline, beautiful downtown, great nightlife, amazing restaurants, scenic along the lake, etc. I would house hack all day in this city. As for investments, perhaps, look elsewhere or find other creative methods for finding deals. But, to all who want to start real estate investing, I don't think it's a bad idea to start but house hacking in the city of Chicago where you get to truly experience the city life (and get that out of the way) and have your tenants or roommates pay down your mortgage.

I just purchased a condo to live in for me and my fiancée recently. It is currently being rehabbed. I don't really regret my decisions on purchasing this place because my fiancée wanted it and we still go it way below market value (even after renovations). However, if I could go back, I would have done a few things differently - 1) I would have chosen a condo with lower HOA fees. The area I will be living in is called Edgewater and I happen to live on a block/street with a bunch of high rise condos where HOA fees are highest (600-800 a month). The location is great in that it is right off of the lake and the balcony opens up to the lake and there are other positives. However, from an investing standpoint, it may not have been the smartest move. Therefore, to help offset the cost of mortgage and fees, my fiancée and I are considering renting out the second room to house hack. But, if I could go back, I would choose a condo with HOA fees between less than 300 bucks or use a FHA 203k loan to house hack a multifamily unit. 2) I would have contacted the HOA earlier and asked about what was allowed on rehab. Our HOA has many restrictions on what you're allowed to do for rehab. For example, we weren't allowed to put stationary appliances in front of the baseboard heaters just in case they needed to do repairs on them... which meant that in certain areas of the kitchen, we weren't allow to put appliances there. So, in our situation, we actually had to put wheels on our oven and other floor cabinets so this would not be an issue. So, if I could go back, I would research HOA rules and regulations thoroughly. 3) I would've negotiated the price of the condo more if I had known that the HOA fees were high since at that time I did not know exactly what was considered high. In retrospect, I think the sellers were extremely motivated and there weren't any offers previously (although they said there were) because of the high HOA fees. 4) I would've had all of the rehab materials and orders in place in order for a smooth and efficient rehab process. I used my dad as a contractor and my fiancée designed the place herself. And since it was going to be our first place together, she wanted it to be perfect! So, the rehab took longer than expected because she did an enormous amount of research. I'm okay with this since it's our own place. But, for future investments, we will have everything ready to go! Anyways, lesson learned.

Hey Leo Guerrero , I think "house hacking" would be a great start for you! I'm trying to house hack a condo that I just closed on. However, I am getting married in a few months and it is much more difficult to house hack when you have a spouse since the decision has to be made between multiple people. I will still try very hard to convince her though!! Not sure if you are single or not, but if you are, then house hack for sure since the decision is all up to you and not dependent on anybody else! Also, read Scott Trench's book, "Set For Life." It's a very insightful book on how to dive in to real estate investing for the average median income earner or those just getting started. Another advice would be to listen to all of the podcasts on BP. There is wealth of information on there! Lastly, be active on the forums and network with people at BP meetings. People are eager to help you! Hope this helps! -Victor

Ray Harrell and everyone else! What do you guys typically charge for a move-in fee?

Linda Weygant You're amazing! Thanks!

Thanks Billie Miller ! Linda Weygant Since I'm just renting out a room, my unit wouldn't be considered a rental right? But, since we are sharing common areas like bathroom, kitchen, etc., what are the tax benefits?