All Forum Posts by: Aaron Zimmerman

Typically 2-4 units are valued based off the comparable sales approach. 5+ units would be valued based upon the NOI approach.

75-80% LTV is pretty common on the cash out refinances.

it is tough to increase the value 16.5% in year 1 unless you have crazy growth in the market or you're doing a heavy value add. Why are you looking to switch from FHA to conventional?

I'd listen to the straight up Chicago investor podcast. It has some great guests that you could connect with.

I'd recommend going to some local real estate events to get connected with other building owners as well as getting contacts

I think one of the biggest things to be aware of in Chicago is how block by block good properties/bad properties can be. 

Welcome to Chicago and I'd be happy to get you connected. If you could specify more specifically what you're looking for, that'd be helpful. 

You're off to a great start. I'd consider residential leasing but you're kind of missing the season at this point. Perhaps you could do that next year

Perhaps you can get in at a property management company in some additional capacity as an assistant property manager. 

@Binaca James glad to hear! In my opinion it's a top us city despite what some of the headlines

Run losses for insurance 

Utility bills 

reasonable rent projections/comping of the property 

@Allan C. good question. I have a lot of investors in higher tax states (both for property and state tax), specifically Illinois and California. For example, let's take a client that has a primary home mortgage of $500k at 7%. That's $35k of mortgage interest they're itemizing now. So, any incremental $, will save them on their taxes. 

Let's say the client paid $35k in SALT between income and property taxes. Previously, they were able to deduct $10k and now with this new bill, it will be $25k in additional deductions. 

Let's say they're in the 24% tax bracket, that's $6k of savings that the client will get back. 

It truly Depends on your tax situation and how much you can save/invest. I'd say getting a real estate cpa would at least assure you that you're maximizing all the deductions you can 

@Michael Plaks spot on with this post. I always appreciate reading your posts. For those in high tax states and making decent income, this is extremely helpful. I think this is going to help out a lot of people, including many of my clients. 

I think this bill also opens up a lot of opportunity for real estate investors and  business owners with 100% bonus depreciation and QBI staying as is (and of course there's a lot of other provisions too)

Welcome! You're on the right path with house hacking. It is the most accessible way to get started and set yourself up for financial success!

You would pick up the additional deduction by filing a form 3115 assuming the property was placed in service in 2024 and you're filing a 2025 tax return