All Forum Posts by: Henry Lazerow

Interest rates are in high 3's to 4% right now. Make sure accounting for these new lower rates in analysis. We are having no problem finding cashflow deals in Chicago class A/B. 

Please list some examples of class B $45k turnkey homes. I highly doubt these are class B and more considered class C/D to the rest of the US.

Typically my clients want 50%+ back. This is in class A/B where if you get half back it means you made six figures in equity and are at 15+% COC. Sometimes you can get it all back too depends on deal.

It's called Tub and Tile it's a kit at home depot. Trick is need to clean the tub really well multiple times with the chemical and then do layers of glaze.

I have dealt with this before it's very annoying. Someone getting evicted I would ask for a concession and stick pretty firm on getting it. The other buyers will also be surprised by this and obviously your offer was higher to get accepted. Just demand a modest amount credit that you think still keeps you above other offers. The economy is up and lots of people have capital to invest there often are multiple back up offers. 

Likely depends on your market/price point. In Chicago I have found 2 months to be ideal. For really high end units 3+ months prior may make more sense. 

Just finished the shower! Used to be ugly yellow subway tiles and a pink tub. I put 4x2 foot tiles down and reglazed the tub white. These tiles are probably meant for floors but I think came out pretty cool. What do you think?

Laying the 2x4 foot tiles was much quicker then the little subway tiles. Tiles were only $200 from Floor and Decor. The tub finish was $50. Glass frameless door was $260 from Home Depot (I'd normally skip the glass hopefully tenants don't destroy it too quickly). Fixture got on sale at Lowes $70.

For the kitchen counter tops I am using the middle stone and replacing old cabinets with white shakur from lowes which I got 20% off for $900 and counter top $800 installed for small kitchen....

Wow rates dropped! Looks like buyers are good as long as have sufficient credit scores and meet the reserve requirements... Multi- Unit (2-4 Units) * Minimum of 10 months reserves, full PITI payment. Retirement accounts are o.k. Primary Residence Only

30 year fixed on a multi family 5-10% down is at 4% today, could get to 3.875% soon.
15 year fixed is at 3.625%, possibly 3.5% soon. 

This is the out of state lender @Brie Schmidt and I have used in past. PM either of us for the contact info/details. 

@PJ Kolnik I think you can do it if you are a PHD whether it's medical or not. I know some even let attorneys get this loan basically anyone with an advanced professional degree.  

I don't think they will ever count rent from the illegal units. Unless Chicago ends up legalizing accessory dwelling units which would be huge boost for 2-4 unit owners. There is a lot of talk about this and some west coast cities have now done it with success. It will suddenly increase the value of 2 + illegal unit buildings by six figures+

Two more low down options from my lender...

VA:

This a loan for veterans, active duty military, and so on. This type of loan often has many benefits over the other loan types as long as you qualify (no mortgage insurance, typically lower interest rates, and are able to put $0 down in certain scenarios). The down payment on a VA loan is $0 up to a $484,350 sales price. If the sales price is over $484,350 the down payment is (sales price - $484,350) x 25%. For example, if you purchase a property for $600,000 using a VA loan the down payment requirement is ($600,000 - $484,350 = $115,650) x 25% = $28,912.50. Unlike the other loan types, you are not able to use 75% of the rental income for the units you will not be occupying to qualify for a larger amount, unless you are able to document a 12 month history of landlord experience.

Doctor Loan:

This is for 1-2 unit properties. No MI, lower interest rates, and 0% down.

Gotcha, I see how it worked now. 

I am going to talk to the 10% down Cali lender again. When he did 5.0% loan interests rates were higher might even be in the mid 4's now. 5 year ARM with a rate cap. This can be the go to option for 3 units. I think with most 4 units we can do the local FHA and make it pass.

The FHA limit for 4 units is $707k. 2 units is $471,100 (loan amount not price)