All Forum Posts by: Daniel Cullen

Hi Josh......if you're looking to jump into the rental real estate market with a limited down payment then the FHA 203k program or a similar type of loan may be a good option. The 203k loan allows you to put 3% down and to roll the renovation costs into the purchase mortgage. Search for local lenders who specialize in 203k loans and start doing some homework. Here's a link to more info: https://www.thebalance.com/fha-203k-loan-costs-and-pitfalls-315411

There are a number of free online services which help you keep track of upcoming maintenance and repairs. Here's one:

www.homebuddy.house

If you use LVP make certain that the subfloor is smooth and level. Any voids, ridges, or gaps under the LVP will lead to excess movement and splitting at the tongue/groove or click-lock joints. 

Hi Jason.....there's a new and apparently strong trend in the inspection industry toward 'pre-listing' inspections. The largest inspection company in Toronto does over 50% of their business in pre-listing inspections as opposed to buyer's inspections. 

I understand why a seller would want to show prospective buyers that the property has been pre-inspected, all significant deficiencies have been corrected, and the place is 'move-in ready'.  It might work well for you as a sales tool but I caution all buyers to get their own, independent, and extremely thorough property inspection in order to protect themselves. 

An inspector who is working for the seller is working for someone who really doesn't want them to find defects. Whereas the inspector who is working for the buyer is working for a client who wants the good, the bad, and the ugly. Put yourself in the shoes of those two inspectors and tell me which one will dig deeper and provide more information. 

Just the other day I spoke with an inspector who does the pre-listing inspections for a major local R.E. brokerage. He told me that the scope of work the brokerage desires excludes the roof and the exterior of the foundation among other things! Can you imagine a buyer relying on such a limited scope inspection? 

Anyway, before I get too far afield with this response I want to wish you luck with your pre-listing tactic. It certainly may be helpful. 

Hi Wayne.....I have a couple multi-family places in the city. One is insured by Cambridge Insurance through an independent broker i.e. Carlson Mikuzis & Taylor. The other is insured through American Family and their dedicated agent Phip Wagler. The latter is a 5 unit and Cambridge wouldn't insure it. I've been very happy with both insurers and both agents. Best of luck! 

A smooth 203k deal is dependent upon having a top-notch 203k consultant (when the renovation costs are over $27k or so), a good contractor, a sharp lender, and the teamwork among those 3 and yourself. It can be a great way to purchase or it can be a real disaster. Do your homework and it can be a great way to combine purchase mortgage and a reno loan.

You can take the lock apart with relative ease and then remove the operative components or you can just use a gel type of crazy glue on the locking mechanism with the lockset in place. 

It's funny to hear complaints about our stringent Dept. of Bldgs. in Chicago. What I see in my travels are the 'how did that pass?' and 'I wonder who got paid off on this?' situations that pop up day after day. Companies like Profits From Rentals and Elite Mgmt. are seemingly able to flaunt health, safety, and livability issues in their properties without repercussions. Many investors feel that between their own knowledge and that of their R.E. pros they don't need a good, solid property assessment. That can be a penny-wise decision. 

I inspected a single family home a few weeks ago which had been 'pre-inspected' by another local home inspector at the behest of the realtor who had the home listed for sale. The home had severe structural/foundation issues which were not disclosed in that pre-listing inspection report that was sitting on the kitchen counter during our buyer's inspection. My clients, the buyers, backed out on the spot since they didn't want to get involved in a deal which began with obvious subterfuge. I had a chance to speak the gentleman who performed the pre-listing inspection a few weeks afterward and he told me that the real estate company who hired him to perform the pre-listing inspection excludes the roof, the exterior foundation, and a few other important items from his scope of work when he is working for them. Bottom line, get your own inspection from an inspector who is seen as the best in the biz. Don't accept an inspection performed at the request of a seller or a realtor....it is bad ju-ju! 

I have used ClearNow for the last few years and I love it. I have 8 tenants total and they all opted in. ClearNow payments will impact help them improve their credit score and it only costs me $30 or so per month. The tenant's payments go to ClearNow on the 3rd and are credited to my LLC account on the 8th. I never have to go to the buildings to pick up checks and I love that! If I am looking to sell any of the buildings I have proof of rents and payments at my fingertips.