Our STR team outperforms most self managers in the area by a wide margin.

Increased floating-rate interest payments, coupled with climbing utilities and property taxes, have eroded profit margins and negatively affected debt service coverage ratios.As over $250 billion in multifamily loan debt matures in 2024 alone, owners and investors are bracing for a challenging deleveraging cycle.

It wouldn’t be a problem for us to do a higher end finish, spend more on the rehab and just catch up on the needed profit margin by selling the property for a little bit extra for example.

And I could have lower income in that window after I semi-retire, before my mortgages are paid off to take advantage of a lower marginal tax rate

With no experience you may have a bigger interest rate but if you have good margins on the hose, you should be OK.

Conservative leverage where you have safety margin (>1.7 ish) debt is a good thing.   

North side of Chicago has lower profit margins but higher potential for appreciation, just something to keep in mind.

I’m not saying anyone should rent if that doesn’t align with someone’s long term goals, I’m just saying that in most cases if your goal is only to be somewhere for a few years it makes more sense to rent, real estate isn’t magic you just simply can’t create a deal out of thin air, margins are the margins, rates are the rates & you make a plan based on that, but there’s not some secret way to make money, even off market deals I’ve found are often worse margins than on-market deals.

My clients normally will ask for the max security deposit if there is marginal credit, but they want to take a chance on the tenant. 

A bill that would have increased property taxes 400% on all STRs failed by a wide margin on Tuesday.