All Forum Posts by: Bob Crane

Central Illinois is full of communities hit hard by companies leaving the area and the state shutting down prisons and other services.

There are a lot of rental applicants out there.  But it takes up to six months to fill a vacancy because of all the people without 3x income vs rent, poor credit, or a host of other problems.

The other problem is when a person loses their job.  How long do you carry them knowing replacing them can take six months?  One landlord I know let a family ride for 4 months, the town bailed the family out (paid the back rent), the person eventually found a job, and they are current again.  That's a scary fairy tale that went well.

I think you need to determine which aspects you plan on outsourcing in your early deals and make sure you're recruiting now for those areas.  Finding them after the fact means project delays, increased holding costs, and possible missed future opportunities.

I'm wrapping up a rehab of a long term hold an hour from me.  I'm in month 6 of a 4 month project because I didn't have a complete team lined up.  

McDonalds and Caterpillar are joining the ranks of other businesses moving back into Chicago from the burbs and various parts of Illinois.  The common reason given is that millennial's prefer to live in a city and these companies prefer top young talent.

It's driving me crazy as I try to read the tea leaves on which neighborhood is emerging.  Would love to hear opinions on various areas or key indicators.

I watched this happen in the nineties leading up to dot com.  Back then it was a good El Stop with solid neighborhood bars.  Going forward it'll probably be the El stop with coffee shops and hipster microbrews. 

I'm rehabbing a 3/1 ranch built in 1950.  I've got 6 odd sized windows to replace.  I purchased one POC window that was close to $200 (custom) and wasn't in love with buying 3 more of that size, and 2 even larger odd sized.  I was considering some modifications to the opening to get into a more common, more affordable window.

Ran to lunch this week and decided to stop at my local ReuseIt.  They had an exact size of those 3 windows and a "close enough" size on the other 2.  Cost was $60 each for the 3 and $100 each for the other 2.  All 5 were brand new Simonton's with the wrap, styro, and stickers still on them.

Just bragging because I'm incredibly cheap and love finds like this.

Now if they only would have had interior doors that day!

What have you found?

Looking at a 1950 4/2 bungalow REO. Realtor tells me there's an "unholy smell" like he's never experienced inside the house. They believe the main sewer pipe may have cracked inside the crawl.

I also notice from the pictures that the former owner removed all bathroom fixtures and I don't see anything capped, which I'm sure is a contributing factor.

This house has been vacant for close to 12 months in this condition.  Once the problem is identified and repaired will the smell go away?  Or is it more like cigarette and pets where every porous item in the home is impacted?

I have no problem pulling carpets and replacing.  I would also bid with the assumption that a full sewer line replacement is needed.   There's no money in this if it requires new sheetrock throughout.

Bathrooms are drywall and bead board.  Living, dining, and kitchen are plaster.

The realtor I use in my investment town is a good friend of my father in-law.  The plus side is he's VERY honest on deals.  Case in point on a house I asked about this week:

"Please forgive my comment but this place is a s**t hole. The smell inside is enough to make one vomit. Pictures are deceiving, the blurry pictures are probably from the film (on the lens) by the smell of nasty in the home. We can't even think what that smell could be. I've been in homes destroyed by animals and it doesn't smell this bad. Nothing can prepare you for what awaits when you put the key in the lock.  I'm thinking a sewer line is broke under the house. This home needs a ton of work. I'd be shocked if it sells more than 30 just my opinion.

(Stop laughing with the visual I just planted in your head). "

Several months ago I got on the announcement list for Naperville Wealth Club but have not yet attended.  I wanted to know if other BP members attend and what your experience has been.

I'm currently investing about an hour away from Naperville but live in the Naper area. There are currently no REIA's in my market.

If I add one I think I'll take the suggestions of this thread and make a small half or 3/4 bath.  That'll leave me with an additional 5x6 area in to the room.

Love this thread. I just made my first purchase last fall - a single family for $26k. I don't know if I'd call it a "sub $30K property" since my rehab budget is $30k. When all is said and done I'll have close to $60k in with an ARV of $100k. Plan right now is BRRR.

@Account Closed - I'm assuming you're seeing the same thing in NWI as we are in the Aurora area (West/Southwest burbs).  By the summer of 2015 most houses aren't staying on the market more than 3 weeks before an offer is made and they are getting 93% of asking price.  It took the far west an additional year or two to recover than the rest of Chicagoland.

Because of the high sale rate and the prices coming back I've been forced to buy much more rural, about an hour from my house.  Nothing in my immediate area is listed below $50k unless you're looking at a D neighborhood.  C and above start at $70k (and those will require a lot of work).

Interesting response from a local realtor/investor (who has several rentals):

"Are you selling?  Then add a half bath and leave room for buyer to add a shower."

"Are you going to rent it out?  Then do nothing.  In this house a 3/1 rents for the same money as a 3/2."

I was surprised.  At this point I'm leaning toward finishing everything else with the house, re-reviewing budget, and determining if there's enough room in the budget to add a half bath.  My big concern is what happens if the single toilet goes down and there's no other option.  Yikes.