All Forum Posts by: Christopher Forero

Update: Closed on property today and have some work to do!
-Located in Belmont Cragin.

-Numbers: $395k purchase on 410k appraised. Loan $388k 30yr 2.25% fixed. Down/Closing about $11k total. Probably $5k in repairs/updates needed to rent 1st and 2nd units. Garden another $5-10k depending on Plan.

- 2nd floor (minor work needed)  already have showings @ $1400 utilities included.
- 1st floor needs work (plaster, paint, doors, bath reglaze maybe). Advertised @ $1300 w/ water/sewer/garbage included.
-Garden Unit needs upgrading, I’ll be living in this unit for next year.
-2 Garage spots rented at $100 each.
-free in building laundry.

I have a roommate and after all expenses should break even to living there for less than $500/m while living there. Post move out depending if I duplex the basement or go non-conforming, should Cashflow $300-600/m. I’m leaving the numbers open from reasonable worst case to best case scenario.

I have the tools and knowledge to do most of work (Just remodeled grandparents downstairs (added whole bathroom, bedroom, Reno kitchen and dinningroom), but am considering farming out to get return faster. Anyone have good plaster/paint repairs?

Also looking for good rental contract, lawyer and Tax advisor. Any suggestions?

Thanks, Chris Forero

Thank you for the reply’s.
Currently have 2 Boilers, as well as the basement heater pictured.
3 Water heaters
2 gas meters
2 100amp electrical panels

Currently 2nd Floor, Basement and Garage are all on same electric and gas.

Considering separating the 2nd floor and basement by adding 3rd gas meter for basement heater and eventual stove, add 3rd meter and 100amp electrical panel.

This way I’ll only pay for 1 Unit electrical (Unit, Laundry, Garage, Common areas). Gas for individual units. Thoughts?

Thanks,
Chris

Been reviewing others posts and watching some videos. For now not getting involved in an LLC, but want to act like one for now. Will be house hacking basement and have 2 rented units. Want to act as though I am a tenant as well and setup a 3 unit structor.

Goal is to keep CPA workload light and maximize my profits while limiting costs.

Was thinking
- 1 Business Checking account (Property): tenants Zelle rent to and all bills are paid out of, reserves (Cap Ex, Repairs, Vacancy) kept.
- 1 High Yield Savings (Business): Majority of CoC return deposited for funding future business acquisitions (earn some interest while building funds).
- 1 High Yield Savings: for deposits (pay tenants required interest and transfer rest to Business Savings account.
- Personal Checking: Drawing funds, receiving refunds for business purchases, add funds to business account if needed.

I made a terrible drawing to help as a visual aid. Thoughts? Also wondering how to handle Credit Cards... Just buy, pay through personal bank, and then reimburse self via business checking to personal checking. Best software to track all this for a decent price?

Thanks,
Chris

Signed on the dotted line for a Brick 2 Flat w/ a 2/3rd finished basement in North Chicago @ $375-400k (FHA).
Property has been family owned and looks well taken care of.
- 2nd Story: 2/1 - Nicest finishes, only missing upper cabinets/shelves, range hood, less outlets than I’d prefer, large pantry and enclosed livable back porch.
- 1st Story: 2/1 - Mid grade finish, missing upper cabinets/shelves,, range hood, same electrical / layout.
Garden: 1/1 - Mid grade finish, ceiling hight is good (lower in some areas, assume for boxed out utilities), floor carpet / tile but noticeably not level. Plumbing from previous kitchen behind wall (currently no kitchen or cabinets), 1/2 of basement is utilities, laundry, storage & back exit (could extend hallway & turn storage area into 2nd bedroom while enclosing laundry and utilities).
- Garage/Backyard: Yard is standard Chicago size with above ground pool that takes up most space (girlfriend wants to keep, I want to get rid of haha). Garage is in 2.5, very good condition.
-Water/Gas: 1 meter. Plumbing and Furnace: are updated from initial walk through.
- Electrical: 2 panels / 2 meters - Setup: 2nd, Garden, & Garage / 1st Floor. I assume I’ll want 3 meters and another panel.

Working on figuring out best plan of actions for Post-closing. Inspection is next week and that should add insight.
Have 7-12k reserve budget for repairs/updates at the moment. What are some initial thoughts from the bigger-pockets crowd?
I am aware of current Chicago proposal to more easily legalize garden units and this space looks like it would pass all code requirements or only need minor adjustments.

- Order of repairs / updates (Musts vs Wants)? Deep clean & quick rent out or something else? Electrical, Kitchen hoods/cabinets/or shelves, Level Basement floor, Down road potentially add extra bedrooms, (Seen similar buildings finished 3/1,3/1,2/1)? 
- How to setup financial/banking system for 3 tenants? Account per door or per building? Morgage account, deposits, monthly rents?
- Has washer and dryer: should I keep & only owner use vs building use (free) vs sell and buy coin laundry.

Attached are some pics of kitchens and electrical.
Thanks,
Chris

Thanks Jake,

We will talk further. Running numbers on the properties you’re sending me.

Chris

John, I fly out of O’Hare. From looking around it seems B & C properties are more in my price range & cash flow goals.

Peter, Ya send me a link and it will be nice to see your progress.

Thank you for the help everyone, I’ll document my experiences as they happen and post here.

Chris

Hello,

My girlfriend Jess and I both work for the airlines and are interested in an investment property to offset living expenses and eventually have a good COC return once we move out to grow our investment portfolio further. She already has a property in South FL while I've managed a 1 bed 1 bath apt in NJ. Been watching/reading BP and others the past 2 months to gain knowledge and skills.

I am a first time home buyer and looking to take advantage of 3.5% down on a good House-hack, Duplex or Triplex in the <270k range. Have the ability to DIY most remodeling projects, but also know when to call a pro. Distressed properties are good, not looking for a 6 month gut & reno (Taxes here are way too high for that time line haha).

I have been exploring zillow and realtor.com analyzing deals and walked by a couple of properties to check them out. Any specific areas to focus on for these types of deals?

Look forward to working and networking with many of you.
Thanks,
Chris