All Forum Posts by: Garrett Pearson

Hello. I am new to the game. I'm working on my first deal and it is in Chicago. I didn't research enough in advance to find out that the permit process can really be a hiccup in your project. Is anyone currently rehabbing in Chicago. If so, how long does it take to get a permit? Also, is anyone using permit expeditors? If so, how much time does it shave off and how much are you paying for one? Please let me know. Thank you in advance.

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*This link comes directly from our calculators, based on information input by the member who posted.

I put an offer in on this house. It is my first deal. I am still in my inspection period so I would like to get some feedback before the deal is finalized. 

My question is are realistic profit margins for the market right now or am I selling myself short?

I wouldn't really question it if I could turn it around in 3 months and have it on the market by Spring. This deal will take 5 months before it even hits there market which eats into my profit margin. One of my major challenges is the fact that it can take me atleast two months to get permits from City Hall or pay an expeditor which will probably cost as much as the holding costs for waiting the two months to get the permits myself and hope that cuts down on the time. I'm showing the holding for 6 months for report sake but I am looking at atleast 5 months before it even hits the market. If takes 3 months to sell the property, I would need to subtract another 4k off the profit.

All feedback will be appreciated. Thanks in advance.

@Calvin Lipscomb Congrats!!! I see you were busy in 2018. Can't wait to watch you surpass those numbers this year. All I ask that you save some properties for us :). Seriously, is Chicago still your target market for 2019?

Great tips. Thanks.

Jeremy Masson Thanks for the heads up. Do you have any recommendations of other lenders that you have had success with?

@Jaysen Medhurst Thanks for your feedback.

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*This link comes directly from our calculators, based on information input by the member who posted.

I am a newbie. This is a tentative deal. I don't have the final numbers on the rehab but need to look at case scenarios as time is of the essence. I put the purchase price at $165K even though it will be $115k with $50K in rehab. I did it this way because it doesn't seem like there is a way to tell the calculator that you are financing the rehab so it can calculate the proper interest payments. I used the lowest ARV amount. Also, I realize that this is a small negative cash flow I wouldn't make a habit of this but because of the amount, I am thinking it would be a good tax write off and a chance to build some equity and start my portfolio. Experienced investors, please give your take on it.

@Trey Snellings I know I'm a little late responding. If you haven't already figured it out. The tax credit (Low-Income Housing Tax Credit) program that you mentioned you would be able to get information from your state's Housing Development Authority. I just read somewhere the other day that the next tax laws don't give a large of a benefit as in the past. It still might be worth looking into. You can also read more about it at https://en.wikipedia.org/wiki/Low-Income_Housing_T.... 

If you want to know about becoming a Section 8 landlord that is done through your local (city or county) housing authority depending on where you live. Sometimes your local housing authority will have a website where you can go and request a landlord package which will give you all the information that you need to qualify. not, give them a call and they will be able to give you the information you need to qualify. Once qualified, you can then start advertising on sites like gosection8.com and there are a few others. You just have to google section 8 rentals. Often times, they will have a bulletin board at your local housing authority where you can put fliers. I hope this was helpful to you.

@Mark Faustrum @Robert Los @Josh Mitchell

Hi guys, I would appreciate it if you can send the plumbing contact as well. Thanks!

@Christopher Phillips Thanks. Great idea. Will do.