All Forum Posts by: Jay Thomas

I bought a rental property in Cook County IL mid 2017 and 2016 property taxes was around $2000. It was a foreclosure and there wasnt any homeowners exemption. The property only needed a light rehab (paint, new flooring). It was vacant for years. I just got 2017 property tax bill and taxes has doubled ($4000). There isnt enough money in escrow to pay this tax bill. The seller only reimbursed me $2000 at closing based of 2016 taxes. This will wipe out my cash flow. Worst part is that tenant just renewed their lease i kept rent the same. I didn't know know taxes will skyrocket as I would have increased rent accordingly. What options do I have or what could I have done to avoid this?

Any update?

@Andrew Kerr @Seth Holmen Thanks for your response. I would love to get the drawings during escrow to get a better estimate but I'm afraid the architectural fee would be a lost cause if the deal fell through. 

I just placed an offer on a SFR. It will be owner occupied. It will be a major rehab and I will be doing additions to the house. I am currently prequalified for a rehab loan (homestyle) and the bank needs to know renovation cost to determine loan value. I am not sure how to estimate renovation cost as I/GC will need architectural drawing to determine SOW. How should I handle this situation? Do people usually get architectural drawing during escrow? Can I get a reasonable estimate from GC before architectural drawing is completed?

I just placed an offer on a SFR. It will be owner occupied. It will be a major rehab and I will be doing additions to the house. I am currently prequalified for a rehab loan (homestyle) and the bank needs to know renovation cost to determine loan value. I am not sure how to estimate renovation cost as I/GC will need architectural drawing to determine SOW. How should I handle this situation? Do people usually get architectural drawing during escrow? Can I get a reasonable estimate from GC before architectural drawing is completed?

I am using an electronic signature lease. The site showed that tenant viewed the document.

My tenant lease is up in 2 months and couple of days. Illinois requires tenant to notify landlord about lease renewal 60 days before lease end. Illinois also requires landlord to notify tenant of non-renewal 60 days prior to lease end. I have sent couple of email about lease renewal but the tenant has being ignoring my emails. I then texted and I got a response that they will renew. I have sent the lease renewal document and tenant is not signing and ignoring as usual. My lease automatically roll into month-to-month but I am only interested in a yearly lease. The tenant has been a great tenant. I am confused at the moment. I want to do something before the 60 days time clock. What do I do?

Any update?

@Scot Howat There conventional loans such as Fannie Mae HomeStyle Laon you can use for Fix N Flip.

You should only be paying taxes on your net profit (Sold Price - Acquisition Cost - Rehab Cost - Holding Cost - Any other Cost Incurred)