All Forum Posts by: Joey Nakayama

On June 1st I'll close on a property near Addison and Pulaski in need of several immediate minor renovations, including:

• Kitchen countertop and sink replacement
• Tile backspash installation
• Sink drain assembly replacement
• Patching and painting

Does anyone know of a good contractor they can direct me to? I'd like to find someone I can work with on an ongoing basis as projects arise.

I'm also on the northside and have great tenants. Like @Brie Schmidt I've offered a SD or move in fee, and my recent tenants have opted for the fee. I may shift exclusively to move in fees for the cashflow and simplicity reasons others in the thread have discussed. 

There are already excellent answers here from @Account Closed

Thank you all for your thoughts! I like the idea of a more gradual rent raise, as @Jake Henrion @Colleen F. and @Roy N. have suggested. Do any of you have a lease form with a rent escalation clause you'd be willing to share with me?

To answer some of the other questions raised in the thread:

My research indicates $1200 is a very fair price for the unit. The building I currently own is in the same neighborhood, so I have confidence in my understanding of the market here. 

I did price the under market rent into the offer. The building would cash flow at the current below market rent, just not at a rate that meets my goals.

The current tenants have been there for several years and don't want to leave. I plan to meet with them soon to discuss the situation and their plans.

Thanks again!

It looks like I’ll be closing on my second 3 unit property in Chicago June 1 (finally!). Two of the units will be vacant by closing, and the third unit tenant’s lease expires May 31. This tenant would like to stay, and has been a great tenant according to the seller (no complaints, always pays on time). The two times I've been in the apartment it looked well-kept and taken care of.

I’m inclined to keep them as tenants, but here’s the issue — they’re currently paying $925 for an apartment worth closer to $1200 or $1250. My initial thought is to offer them a slightly under market rate to encourage them to stay, but without denting my numbers too much. How would you handle this situation? 

I'm lucky enough to have found a good agent. I've only worked with him on the buy side, but I have friends who've worked with him on the sell side and have nothing but great things to say about him. PM me if you're interested and I'll send you his contact info.

I don't know much about wholesaling, but if you search that term in the forums you'll find a lot of people getting started that way with little or no cash. 

Depending on the interest rate you're paying on your debts, it might make sense to just use the $2k to pay it down. Investing only makes sense if your rate of return reliably outperforms the rate on your debt.

@Adam Sporinsky The number of gas meters won't necessarily tell you anything. Legal buildings should have separate meters for each unit regardless of the heating system. As @John Weidner mentioned, many listings will detail the type of system(s) a building has. Some don't, however. If you see vents for a forced air system, those will almost always be separated. See if there's a furnace for each unit to be sure. If you see radiators, check the basement to see how many boilers there are. If there is only one, it's a common system that the owner pays for.

This isn't necessarily a deal breaker. You can advertise "heat included" in a listing, which is appealing to tenants. You can charge more for rent to compensate for the expense. Also, fewer systems generally means fewer maintenance issues. 

You probably already know this if you've been looking at properties, but in many Chicago multifamily listings "tenant pays gas" means cooking gas only. If there's a common heating system for the entire building (or multiple units within it), that would be an additional expense for you.

A couple years ago a tenant requested to pay me using Chase QuickPay, and I've used it with all of my tenants since. No one has had any issues with it, and it costs nothing. If your tenant has a Chase account, the transfer is almost instant. If they don't, it takes a few business days.