Use Series LLC to handle management activities, including collecting rent and signing leases.

I wanted to start this conversation because I’ve seen too many investors (including myself) get into serious trouble due to a lack of cash reserves.

I learned so much along the way, including navigating the legal process needed to remove previous owners (squatters) who did not want to leave.

While the cost can vary depending on the scope, zoning, and materials, I’ve seen similar projects run anywhere from $50,000 to $150,000, depending on factors like plumbing, electrical upgrades, and structural work.If you’d like, I can connect you with a few contractors or architects in Chicago who specialize in basement conversions.

Courtesy of the video, criteria to consider include Deal Type, Management Plan, Business Plan, Financing, Asset Class, Ownership Structure, Property Class, Location, Purchase Price, Rehab Costs, Risk Target, and ROE Targets.

Follow all safety requirements your Insurance Company plus city and county require.This usually includes childproof access and alarms.

Examples include replacing a deck or renovating a kitchen.

Some key reasons for privatization include reducing government risk exposure, encouraging private sector competition, and streamlining operations.

Here are the key numbers:Potential purchase price: Mid-$400k rangeAppraised value: Estimated at ~$500kRehabbed comparable properties (comps): ~$580-600kMonthly PITI (with 5% down, including mortgage insurance): ~$3400First-year PITI (with 2-1 buydown): ~$2900Monthly income (after taxes): ~4-5kLiving expenses (utilities, groceries, etc.): ~$1600Savings available: ~15-20% of the purchase priceCash to close: ~$34kRehab estimate: ~$34kRemaining reserves: ~$20-25kTo fully fund the rehab, I’d need to come up with an additional ~$15k in the short term, which I anticipate paying back quickly once the rental portion is generating income.

In evaluating seller financed notes, there is always a balance between redeeming and non-redeeming factors.