All Forum Posts by: Danny Duran

This is a 6 bed / 4 bath brick 4-Flat (2 - 2/1 bath units; 1 - 1/1 bath units). Unit 1F is vacant. Units 1R, 2R, and 2F are occupied by non-paying tenants. Buyer responsible for eviction/cash for keys removal process or screening to get performing again.

This property sits right across the street from a large middle school, and the area is fairly quiet. I know this deal won't last long, so if you're interested let me know ASAP. Proof of funds is required before any showings will be scheduled; offers must be accompanied by a $2K earnest money deposit.

Call (773) 672-7733 ASAP or drive by - do not disturb the tenants

ARV: 170K

     70%     119K

     Repairs: 50K

MAO: 69K; You can pick this property up for only $55K!

Notes: Landlord pays water; tenants pay all other utilities

Levels: 2 floors of living space + unfinished Basement

Finished Sqft: 3,370 Sqft.

Build year: 1927

Garage: None.

Repairs: Only minor cosmetic repairs needed to lease units at moderate rents. See Dropbox link below for photos of property condition. With $50K in cosmetic updating, you can fetch maximum rents and achieve the ARV of $170K.

Comps

$170K - 0.9 mi away - 6/3 baths -https://www.redfin.com/IL/Chicago/6635-S-Maplewood-Ave-60629/home/13985956

$180K - 0.8 mi away - 6/2 baths -https://www.redfin.com/IL/Chicago/6627-S-Artesian-Ave-60629/home/13986136

$158K - 0.4 mi away - 6/3 baths - https://www.redfin.com/IL/Chicago/6646-S-Washtenaw...

Complete Comparative Market Analysis: http://cloudcma.com/pdf/546d50f95884c8988b55fcec15281452

Seller Requirements of the Buyer

1. The transaction shall commence on an

Asking Price: $69,000. ARV: $210,000

$210K x 70% = $147K (ARV x 70%)

                          $30K     (Repairs)

$117K (ARV x 70% - Repairs)

Instead of $117K, you can pick this up this deal for $69,000!

Pictures of 5724 S May St in Dropbox:

Property Type: Graystone 2-flat in Englewood. (4 bedrooms in top floor unit, 5 bedrooms in the bottom duplex unit) with 2.5 car garage. Rehabbed in 2010. Top unit is vacant; bottom (duplex down) unit has a squatter in it.

Beds: 9; Baths: 3

Levels: Two units

Description of Square FT: 2652 Sq. Ft.

Year property was built: 1904

Garage: Needs to be repaired

Lot size: 3750 Sqft. land

Taxes: 2014 Taxes are current. No Sold or Delinquent Taxes for this PIN as of 1/24/2016

Needs $30K in cosmetic repairs ($15K for 2nd floor unit; $15K for 1st floor unit). Photos of needed repair work are attached. The top floor unit ceiling has water damage. Source of the water leak was the roof, which has been repaired, so, cosmetic repair is all that's required. The garage was not included in the 2010 rehab, so, it needs to be repaired. There are building violations (see attached PDF below) - "PLUMBING COMPLAINT INSPECTION # 11667030" & "City of Chicago Department of Administrative Hearings Docket # 15BT05485A." The building violation list has a DEMO COURT matter that was closed in 2011; no mentions for demo court since.

Comps

$219,000 - 0.1 mi - 8/2 baths - http://redf.in/1LmvGKS

$228,000 -0.4 mi - 8/2 baths - http://redf.in/1Qc3id8

$234,635 - 0.7 mi - 6/2 baths - http://redf.in/1TeEfub

$240,000 - 0.8 mi - ?/2 bath - http://redf.in/1TeEfKv

$305,000 - 1.1 mi - ?/2 bath - http://redf.in/1LMJLMx

Seller Requirements of the Buyer

1. The transaction shall commence on an “As-Is.” basis;
2. Not later than April 1st 2016, Buyer shall have fully resolved and satisfied all matters relating to City of Chicago Department of Administrative Hearings Docket # 15BT05485A, as referenced in the enclosed. Upon resolution, Buyer shall provide proof of the same to Seller. This provision shall survive closing.
3. Seller shall not be obligated to tender possession at closing. Buyer shall assume property subject to any tenancies, “squatter issues,” leaseholds and relating matters.
4. Buyer pays all closing costs

Pictures of 5724 S May St in Dropbox: http://bit.ly/1T3gqFb

Proof of funds must be furnished in order to schedule a viewing.

Contact me with offers: [email protected]; (773) 672-7733

@Larmon Cummings JrI do the same thing. Try to email an offer to every owner I talk to. Multiple touch points is the key. Give them multiple avenues to get back in touch with you: email, text message, phone call, snail mail. More is better here. 

Streator Investors - seller must move ASAP for a job oppty out of state and can be out within a few days or a week. This SFH is walking distance to local City Park and Streator HS.

2 car garage was built in 2011 (not many houses have a garage in this area).

Appliances will stay. Has a newer furnace, new breaker system, and central air.

All hardwood floors on the lower level. 

Recent updates to kitchen. 

Bathroom upstairs and downstairs are updated.

Has a full, unfinished (dry) basement

This property needs cosmetic repairs only: paint and new carpet in the common area and some new carpet upstairs. Other carpeted areas just need to be cleaned.

Houses without 2 car garage in the area are renting for $750 - 900 month.

This property would cash flow well as a rental: $750/ $25K = 3%; $900/$25K = 3.6%! It could also be sold on the retail market after making the minor cosmetic updates.

Comparable SFHs in the area have sold for $39,900 - 45,000: 

$39,900 - 1,016 sqft - https://www.redfin.com/IL/Streator/124-W-Elm-St-61...

If you are interested, call 773-672-7733 or email [email protected].  

More pictures available upon request. A viewing of the property can be arranged. Cash purchase only.

Time is of the essence, please reach out ASAP to seize this opportunity. 

@Joseph Dimaria I don't have Rent to Own experience. However, you should join the next meetup on Dec 1 at Dino's Pizza. @Brie Schmidt & @George Foster are the organizers.

Great group of like minded investors who will likely have that kind of experience. I'll be there.

Welcome @George Sabino! You should join the next meetup on Dec 1 at Dino's Pizza. @Brie Schmidt & @George Foster are the organizers.

Great group of like minded investors! I'll be there.

@Brie Schmidt thanks for the input. 

This tenant has a co signer so that makes me feel less concerned about taking them on. 

Of course, I will run the co signer through my screening process and Verify their are qualified. If they do, and there are no other red flags on the prospect's screening report, I would feel comfortable moving forward with them. 

BP'ers--a prospective tenant who is undergoing a short sale on their home wishes to apply to rent one of my units. As their credit has been damaged by the short sale, they have offered what they claim is a qualified co-signer. In addition to the co-signer, they are willing to provide me with proof of employment, references, bank statements, etc. to prove the ability to pay the monthly rent. The married couple are both professionals and claim to earn a gross monthly income of 3x the rent amount (to be verified by me).

I have a rigorous screening service for criminal, credit, eviction, and employment verification which I will use to process applications for the married couple and their qualified co-signer.

I've read that renting to a tenant undergoing a short sale is fraught with risk because the short sale may never occur, which would result in foreclosure and could pressure the tenant into bankruptcy during the lease period. Although more recent federal bankruptcy laws contain more protections for landlords, I've heard that it is still possible for a tenant who files bankruptcy to avoid paying 1 - 2 months of rent before they may be evicted. 

Assuming the co-signer passes my screening process and I lease up this new tenant, the co-signer will be required to pay the rent no matter what. Is this right? If so, this would cancel out the risk of non-payment due to bankruptcy. right?

Are there any additional risks in this scenario that I'm not considering?

What other questions should I be asking the prospect?

I don't understand short sales very well, so, I don't know what I don't know.

I don't know whether the short sale has a closing date established or not yet...

I have not yet processed this prospect through my screening service as I wanted to learn more about implications of their short sale before moving forward.

I'd really appreciate some help from experienced BP'ers (@Marcia Maynard ) out there on how to conduct my due diligence around this prospect who is undergoing a short sale. Please advise. @Brie Schmidt

Note, my unit is located in the City of Chicago and subject to the Chicago Landlord-Tenant Ordinance.

welcome to Chicago. I'm a buy and hold investor in the NW Side. Lots of opportunity. Where do you need to be for your job?

@Brie Schmidt you mention SF summit 2015 above. Is that going down for sure? @J. Martin? I'm in!