All Forum Posts by: Jonathan Pliszka

Thank you both! I spoke with my mortgage broker and he seems to think that we'll be able to get this done as well. I'll likely stay away from FHA the second time around and simply use a conventional loan, put down 5% with a fractional PMI payment. Cheers!

I purchased a multi-family home at the end of 2011 using a FHA Mortgage. I paid $165,000 at the time and put 3.5% down and am currently living in one of the units. After some improvements that I’ve made and general market appreciation, I’m confident that I can now appraise over $200,000, which would put me over a 20% equity stake. I currently owe $156,000. My thought is to refinance my current FHA Loan to an investor loan, which will come with a higher rate, but negate my PMI payment. My hope is that by doing this, I’m again eligible to again purchase with a FHA Loan and would only have to put down 3.5% when I buy my next property. I’m OK with moving to this property per FHA guidelines. What am I missing here? Any help you can provide is greatly appreciated. Cheers!

I personally like to schedule showings back-to-back-to-back for a number of reasons. It tends to be the best use of YOUR time and serves as a good sales tactic as well. Potential tenants will see other people there and they often become competitive. Tell your tenants that you'll be showing the unit for a certain time block (say 5-7 PM) and then schedule appointments in 10-15 minute increments. If someone shows up at 5:00, they'll see the person there waiting for 5:15. That 5:15 showing will then see the 5:00 showing and the 5:30 showing, etc.

As far as meeting up for a lease signing, you can do that anywhere. Pick a coffee shop that's convenient for you and close to the subject property.

Good luck!

"Have you considered taking in pets? If so, put in an extra deposit and charge $25-$40/month rent. Just meet the pets before renting to them (you will also see how the renters take care of the place)."

I agree. In Chicago, so many of the big property management companies don't allow pets, especially dogs. You open yourself up to an entirely new pool of renters. I charge an additional $200 pet deposit and don't allow any agressive breeds.

@Gary Clark If I remember correctly, you're on the Northwest Side too. I experienced a similar situation with my building. I was getting people touring simply for the sake of touring. I would have people show up, tell me they love the place and then mention that they were simply looking for their friend who is moving to the city three months later and just want to get an idea of what's available for them. I've learned to pre-screen tenants as to simply not waste my time. By simply reiterating "I'm looking for a tenant to begin a lease on September 1st" you can alleviate yourself from a lot of people who would simply waste your time otherwise.

Also, I know people have mixed reviews on it, but I always try to stagger my viewings. I'll schedule appointments to show in 15 minute intervals. People will almost always see that I have additional showings and become competitive about it.

Finally, your rent isn't TOO far fetched, but may be a tad high. Just a quick scan on the MLS and I'm seeing some pretty decent looking 3 bedrooms on the Northwest Side for $1350.

Good luck!

Just curious to see if anyone has any additional insight on this? Has anyone spoken with lenders regarding Homepath Renovation Loans?

Hi Dylan Hall. Welcome to Bigger Pockets. It's always nice to see more Chicago folks. Best of luck with your blog. Cheers!

Sean Mooneyham Do some research on available pre-license courses in your area. Each state has different requirements, but many courses are at home and self study and only require a few trips to a classroom. If you're the type of person who needs structure, I'd suggest taking classes, but if you'd rather read a few hours every night and on the weekends, I'd suggest that self study route.

Before you take your test, talk to some managing brokers about your intentions of being "part-time." Be up front with your intentions and bring something to the table. For example, reach out to your network of family and friends and let everyone know you're in the process of becoming licensed. Have a few "leads" from your network that you could mention to the managing brokers you could begin working with once you become licensed.

If you're having trouble finding a broker, look on Craigslist. Many even offer "part-time." To be honest, once I passed my exam, I had about 20 solicitations from managing brokers in the mail over the course of 3 weeks.

To start, pick a firm that doesn't charge desk fees. They will likely take a bigger split, but often times these smaller offices will provide more access to the managing broker and mentorship opportunities.

Good luck!

I'm actually pretty bullish on East Garfield Park myself. Giovanni Garcia, where are you estimating your rents from? Is this what the CHA is paying for 3-bedroom units? I'm assuming you'll be going Section 8 with this?

Andrew Emery Always nice to see young Chicago investors like myself! Have you considered purchasing a duplex or a three-flat? If you're willing to live in an area that's not River North, Old Town, Lincoln Park, Lakeview, Bucktown or Wicker Park...this could be a viable option. I purchased a three flat in Old Irving Park (think Addison Blue Line) and am currently living for free from the rental income of my other two units. I too used a FHA loan. Shoot me a PM if you're interested in chatting further. Cheers!

All the best,
Jonathan