All Forum Posts by: Calvin Lipscomb

Hey BP Family,

Who's investing in multi-units in Chicago. I will be out there the 6th to the 9th and would love to connect with anyone who is out there investing. What are the next up and coming areas over there?

so there really is no true "no money down" BRRRR. Besides inspection and appraisal, you got to have money available to make payments to HML during rehabs.

Looking for advise on how to select a company to perform a cost segregation analysis on a 6 unit apartment that I purchased in May of this year.  Property is located in Dunedin, FL in the Tampa/St. Pete area.  One local recommendation led to a company with an appraisal background and another local recommendation led to an a company that used a professional engineer and a CPA to produce a report.

Any tips on qualifications to look for in a company, and do they have to be a member of the American Society of Cost Segregation Professionals. 

Thanks,

Diane Davis

Thanks everyone for the feedback. I have 3 other partners in the deal. They do not have any multifamily experience. But the current management company is really good, I intend to keep them, they manage everything, including small value add portion of it.
Its 98% occupied and debt is covered at 70-75% occupancy as well. I called all the neighboring apartments and all are renting at least $50-100 more, with some improvements. I don't think I will implement RUBS (reason it stays full is, all bills paid), but plan to improve water and electricity efficiency to cut costs. Talked to tax attorneys about fighting tax increase etc. Engaging CPA early on.

There are 3 other units, that are not being utilized right, used for storage, and one for office. I plan to rent them out, and find alternate solutions for storage, outside in the parking or some place else. That should increase the NOI, also add covered parking.
Might want to get out of the deal in 2 years. Of course, if the caps go from 6 to 8 in 2 years in Fort worth, then most are toast; and then I will have to hang on to the property longer; there is cash flow at current rents.

Question on a property that I am considering in the Avondale area . 

The cost to gut rehab is around 125 - 150k. With the holding costs and risk involved the return is not that great.

Asking : 250k

ARV Gut rehab , A plus rehab : 475 K

ARV cosmetic rehab : Not sure

1.5 story , unfinished basement

4 bed , 2 bath - 1700 Sq ft

My question is : When should we consider a gut vs cosmetic rehab

Few things I thought about :

1. Check the comps - Are most of them gutted and opened up ? Do we have comps suggesting that cosmetic rehab is an option

2. Current condition - Badly damaged and very boxy layout

Thanks Much

My profound thanks to everyone that participated in the forum! There's a ton of useful information here that I'm working through! 

To everyone that reached out, I will be responding as soon as I'm ready.

"BEST", for what? Consistent occupancy with little maintenance and no police calls? Maybe Lincoln Park, Rogers Park, EdgeH20 (or other lakeshore communities). "BEST" in terms of high cash flow, "guaranteed" Section 8 income, and guaranteed police calls and frequent turnover? Washington Park, South Shore, or Englewood (although Englewood has more SFRs than multis). "BEST" in terms of appreciation? West Loop, Pilsen, Fulton Market.

Honestly, I don't see why anyone who doesn't live in Chicago would want to invest in Chicago. There are PLENTY of other areas that will yield better returns in other parts of the country, and you can get more properties for the money.

My name is Kendra and I am interested in buying a property in West Englewood neighborhood in Chicago IL.  I am located in Dallas, TX.  The property is affordable and I can fix it up to add equity and increase revenue.  I am nervous, mainly because this is new to me, but I am confident that I can do this.  Can anyone share advice on managing properties in a not so nice neighborhood?  Whether or not I should jump into an apartment building that needs to be rehabbed on my first deal, even though it is income producing?  Any advice about rehab funds in Chicago or folks I should reach out to in order to successfully make this happen?  Any information, contacts, and advice is greatly appreciated.

Can someone suggest a property managers from the  south side?