All Forum Posts by: Eric La Pratt

Justin Sumulong I would totally check this out!

Hey Andrew Abbott ! Sam Ball is right except that the deals seem to be drying up if you're looking on the MLS. What might look good will probably stop being a deal when you readjust for taxes. Properties are reassed when they change hands and done so at the sales price. You're looking at roughly $4500 in annual taxes for every $70k in purchase price for non-owner occupant. So a $140k 2 flat that brings in $2000 in net rent has $800 of that going back out in taxes. Brutal! So you need to find something that is off market, a pocket listing or maybe partner with someone who has deals happening. Have you been to the local REIA yet? I've heard there are decent deals downriver. I know nothing of the area there but keep my eyes glued to the MLS in the Ferndale vicinity.

As I look for deals in Chicago for my next investment, some are too pricey for me but might work with a partner. I am trying to get my bearings while I look. What are the terms a silent cash partner might be looking for in Chicago? Is a 10% cap too little? Is 8-10% COC return for a silent partner not enough? What do silent partners look for?

Welcome to BP, Darrell! The Chicago market is great and full of lots of good people. I suggest checking out a REIA/meetup or two!

Good question @Ramon Moreno. It is definitely not normal to submeter water in Chicago. I have lived in multiple rental units in the city and know many, many people who have done the same. Never have I or they been asked to pay for water.

I am curious to know why you might be considering it. Water is something you should account for when running your numbers, especially at $50/month per unit (which does seem a little high). Check your rents versus what the market is charging on a site like www.rentometer.com and make adjustments, if you can, over time to account for usage. Also keep in mind that property taxes are about to go up, too, and those will most likely be passed on to the tenant in higher rent. Water may be the least of your worries depending on the value of your property.

See you all Tuesday!

Welcome aboard @David Green! Nice to have a fellow Uptowner (Uptownite?) on the site, especially one with some house hacking experience. 

Chicago BP'er George Foster recently posted an inspiring note acknowledging and thanking Brie Schmidt for her contribution to his success and it gave me an idea: Why not start a "Thankful" roll call where we recognize those who have helped us (or in my case are helping me) along the way?

3 Rules: Give thanks, tag at least one BP'er, and pay it forward if you are tagged!

In that light, I'll start:

Thank you @George Foster  for taking a look at my project behind the scenes --- that 2nd opinion was a massive help. Also a big THANK YOU to @Brie Schmidt for working tirelessly with us, coaching and the late/early calls & emails. Lastly, thanks to @Joshua Dorkin, @Brandon Turner and the entire BP team for creating such an amazing site. I only recently stumbled across it (a few months ago) while researching a landlord question I had and that one late night stumble has opened an amazing world that is positively impacting my family on a major level. And I do not say that lightly!

There can never be enough thanks and praise handed out in this world. Inspiring, @George Foster!

You know, I really liked the Chicago REI roll call @Brie Schmidt did earlier this year. How about we again combine that with this inspiring post and start a "thankful roll call", especially given the time of year???

Thanks to you both @Steven Gesis & @Lumi Ispas for the recommendations. 

This property is in Avondale, on the north side. Keep 'em coming, Chicago investors!