All Forum Posts by: Chris Scales

@Crystal Smith I've heard that I may be able to speed things up a bit by getting a demo permit first, while architect works on drawings that will ultimately be submitted with the building permit application. That way I would be able to get demo out of the way earlier so that I can better assess foundation / waterproofing needs. Do you know if that is accurate?

Hi all! I hope I'm posting to the correct forum... I recently purchased a 2 flat in Chicago that is in need of a full gut rehab. Between the basement, first floor, and second floor, there is about 2,500 sq ft of finished space within the property (mix of plaster, drywall, hardwood floor, carpet, tile, etc.) including 2 kitchens and 3 bathrooms - all of which will need interior demo down to the studs. I have placed the property under my LLC and of course have property insurance. I see on Chicago's Department of Transportation website that I can pretty easily obtain a 30 day dumpster permit for $100. This brings me to my questions regarding interior demo:

1. 1. What risks do I run into by hiring an uninsured demo crew to perform the work? What if they also aren't licensed? If I am getting liability waivers signed by each of the workers, does this provide me with sufficient protection in the event that one of the workers were to be injured on the job site?
2. 2. Do I need a building permit in addition to the dumpster permit in order to have the interior demo done? 

Thanks in advance for any help you can provide!

I'm looking at a potential deal in Chicago for a 3 flat on an extra wide lot. Half of the lot is empty and the empty half alone measures approximately 25x125. Based on comparable properties in the area, it seems like the 3 flat  is listed fairly competitively and the extra large lot is essentially an added bonus. Although, this is a pretty appealing deal regardless, it becomes extra enticing if I was able to split the lot into two lots and build a 2 flat on the empty lot (based on a quick look at the zoning (RS3) for this area, I believe this is possible).

Does anyone have experience with costs/process/timeline associated with this?

Thanks in advance!

@Mark Ainley your view seems consistent with what I have read online. In the beginning, my preference is to manage my first (few) properties on my own; my thinking being that it'll certainly be a good learning experience and it will help me know what to look for when bringing on a PM once I've acquired a greater number of units. It'll certainly be a lot of work getting up to speed in the beginning, but I'm looking forward to it. I'll send you a direct message as well as it certainly sounds like you have some useful local insights.

@Patti Robertson very helpful blog post, thanks for passing along.

@Account Closed from my read, the initial annual inspection is at no cost, but it is $75 for every re-inspection after that, is that correct? It seems like getting tenants in place can take a good amount of time and paperwork; however, assuming tenants remain in place (and excluding the ongoing inspection requirement), what kind of additional paperwork can one expect as a Section 8 landlord in Chicago? Although CHA may not be too inclined toward actions against a tenant who doesn't pay their portion of rent, is this really that much different from the city not being much help when you have a non Section 8 tenant that isn't paying rent? Or is there an additional risk here unique to Section 8?

After googling around a bit further, I came across the CHA HCV program property owner guidebook (link below). I haven't been able to read through it all quite yet, but it looks like this should be a helpful resource. It also looks like the city holds several monthly info sessions for current/prospective Section 8 landlords so I have registered to attend the next meeting scheduled for later this week. I'll plan to update this thread with any additional insights.

CHA HCV Program: Property Owner Guidebook

I'm looking to acquire my first rental property and have come across several interesting opportunities over the last few months that have Section 8 tenants. More specifically, I walked a 3 unit property recently that appears as if it would cash flow quite well ~$250/unit after servicing mortgage (75% LTV on list price), property taxes, insurance, maintenance, utilities, trash, etc. The numbers are almost too good to be true; I've been looking at properties around Chicago for about 6 months now and haven't come across anything that comes close to cash flowing this well. The property is only about 10 years old and generally seems to be in good shape; minimal improvements would be needed outside of a fresh coat of paint, carpet in common areas and landscaping. I'm guessing this property is priced this well because most buyers are being scared away as a result of the section 8 tenants. Assuming that's the case, I wanted to ask the BP community if there are investors out there that could share their experiences as section 8 landlords - What additional work is required to be a section 8 landlord in Chicago? What resources are available to learn more? What risks are involved with section 8?