All Forum Posts by: Jennie Berger

@Anthony Mei I agree with . As a developer and general contractor focused on new construction of SFHs and small multi unit buildings on the North side of Chicago, I can tell you without a shadow of a doubt that they spent much more than $87/SF to build this. Remodeling homes at a similar ARV ($1.4MM) wouldn't even be as little as $87/SF, if done properly. It costs us between $155-$185/SF to build new construction nowadays, depending on finishes. Those are hard costs only and do not include the purchase of land or soft costs. If you were going to 'commission' us (or any GC / design build team) to build something for you, mark that up about 15-20%. I hope this helps!

 You'd also want to consider tenant communication and troubleshooting. I believe you can manage an MTR from anywhere, just don't forget to factor in time differences. If your tenant / guest has an issue and tries to call or text you, you'll want to respond in a timely manner. Plenty of MTR pros travel the world and self manage their properties... 

@Sarita Scherpereel I'm trying to RSVP on your website via the pop up box but it says '400 Bad Request.' Did you change the link by chance? I am planning to build an ADU myself and would LOVE to attend this event. Thanks! Jennie

By right, RS3 zoning allows SFHs and 2-flats. Check this quick info out: https://secondcityzoning.org/z... Though it was converted to a SFH prior, you should be able to legally convert it back to a 2 flat as long as the FAR (floor to area ratio) requirements are met. If you share more info about the lot size here, that would be helpful. Or feel free to DM me and I'll give you more insight.

*Disclaimer: I am not an architect or zoning expert, but rather a general contractor and developer who has worked on many projects in RS3 zoning and done a tireless amount of research on zoning rules & regulations. 

As mentioned above, I am sure @samuelpavlovcik also has a better answer than me.  (I am unable to tag him here for some reason) I get most of my info from him (LOL).

 Yes! New construction in places like East TN are very fairly priced. And yes, I generally put down 25-30% on my properties in today's interest rate environment. Happy this helped!

@Luke Stewart as long as you do 32+ days, you can rent on Airbnb Long Term in the city of Chicago. :) That's what I do, and it doesn't require any permit, registration, or license from the city. I also list on Furnished Finder. Each building will have their own stipulations as @TomCasey mentioned, but the 32+ day rule may help to bypass them in certain circumstances.

@Luke Stewart 

This is absolutely my favorite rental strategy! I have an MTR in East TN (SFH, 3 bed 2 bath) that stays about 98% occupied. And I apartment hack my 2 bed 2 bath here in South Loop, Chicago. I provide a fully furnished, private bedroom and bathroom in my apartment located in a boutique, mid-rise buiding with 5-star amenities and views of the Park & Lake.

Initially, when I set out on this journey, my goal was to rent to travel nurses. And, while I have had 1 travel nurse so far, my 4 other renters have all been business professionals. 2 from outside the country, 2 from other states. All here for various reasons, but suffice to say, my price point seems to appeal more to business travelers than nurses. :) Now, I also provide a very unique space, being that I'm 2 blocks to the lake and have water views from my apartment. This is a very rare offering from what I can tell (based on my research), and these features in conjunction with the amenities my building offers (you name it we have it) and secured garage parking available (extra $), I am allowed to charge a premium for my rental. EVEN THOUGH IT'S A SHARED SPACE.

I'm constantly amazed at how many people don't mind sharing an apartment! Given, I'm a nice person and a clean roommate (LOL) but they don't know that. Point is, yes, this strategy works and MY place works well for business travelers (individuals) and the occasional medical professional (who--no offense--ALWAYS asks for a discount :). Let it be known that I started apartment hacking in Sept 2022 and have been 95% booked since then. I'm currently booked through July 1, 2023. I was practically fully booked all Fall and Winter. I did raise my prices for Spring and Summer (pool will be open in 1 month!) My bookings usually come in 3-6 weeks ahead of time, which is great as it helps me to plan ahead and is further validation that I'm providing a place of value to people.

I do have small pockets where nobody is here, and that's a nice break for me. I've absolutely LOVED this experience and meeting people from all over the country and world. Not that this is your situation necessarily--I'm not sure if you're going to rent out an entire place or a room--but I thought it was worth sharing.

I hope this helps and if you want any more info or feedback, please DM me and we can set up a time to chat!

-Jennie

These are what I typically see for MTR expenses @Scott Phillips. This is for Knoxville TN. I'm sure each market varies a tad. How much these cost will depend on the property itself and your location. Normally I buy new construction, so my repair and capex reserves are 5%. However for a gut rehabbed property I'd set aside 7-8%, and for a rehabbed property (cosmetic updates but not fully rehabbed, depending on true condition and age) I'd set aside 10% for each. I also list on Airbnb long term, which is free so not included here as an expense. But I build in a 2% 'property management' fee for myself, since I self-manage. :) Hope this helps!

-Jennie

 Ah ok. I would need to provide AC in my units for sure. Thank you for your feedback!

 Ah, OK. It's mu understanding that mini splits may not be the best idea for Chicago considering how cold it gets here.