All Forum Posts by: Jerry N.

Hi, We are looking for a recommendation locally (not interested in a virtual accountant).  Until now, we've done our taxes ourselves.  However, this year, we've had a more complicated transaction and want to enlist a professional.  If you have someone to recommend, please let us know.

Thanks for taking the time to read the post!

@Phil Janasac

I believe Brie is correct, if the city issued the zoning cert as 2 units and you buy it, you cannot get it changed just by presenting evidence that it used to be 3 units.  You would need to go though zoning requesting an administrative adjustment, variation or zoning change.  If the seller requests a new zoning cert with 3 units the city might issue a new one, if the evidence is there, but that would only work for you before the sale.  Going through zoning can be slow and expensive and the result is not guaranteed.  

If you plan to do work (ever, even years from now) on anything that would require a building permit you would run into trouble.  The city is very strict about decommissioning illegal units. You may not have to tear down the coach house, but would likely have remove the kitchen and all plumbing fixtures (bathrooms). You will not be able to get permits for any work on an illegal building.  Should you try to do work without a permit and someone calls the building dept., big problems. Renting an illegal unit can be even more problems if a tenant decides to make your life difficult.  

Making a FOIA request isn't hard at all, knowing what to specifically request can be tricky.  The form can be filled out online and done electronically, or you can go to the building dept at City Hall.  We've had more successes with going to City Hall.  The info you are looking for is pretty straightforward but in person, you might find someone who will tell you exactly how to word/make the request.  

If it was represented as 3 units you may be able to get a concession on the price since it is only two legal units. We saw that happen once with a bank owned REO. I think you said it was listed as two. Regardless, that could be the leverage used to get the seller to ask for a new zoning cert (or try and renegotiate the price).

IMO, if you buy it as two units you are stuck with two units and may never get the 3rd unit legal, unless it is already allowed under current zoning. If you by it as two units, you should be prepared to live with it as two units forever, even when you sell.  

One more thing - with the new ordinance for short term rentals, (if you were planning to do it that way) the legality of each unit you try to register will be evaluated.  

Of course the agent is still pushing you to go through with the deal...  Did the agent recommend the lawyer?  Agree with PPs that you might want a different attorney.  Out of anyone, your attorney should be helping to guide you through the nuances of Chicago laws/ordinances/pitfalls, etc.   

Have you actually seen the certificate?  Was it requested as three and approved for two?  If so, then I think you have a real problem, as it likely it means it was evaluated to be possibly grandfathered and determined not to be legal.  If they only requested it as two, then it was easy for someone to not have to look into it at all.  If it was put up illegally, even if it appears to have been built at the same time, you could still have problems - which your attorney should be telling you. 

See if you can find from the assessor's office how many buildings are part of the PIN.

Some possible bad scenarios;

*This may affect your ability to get the mortgage especially if your are trying to get a conforming loan because it will be viewed as having illegal units. 

*You don't have mortgage/lending issues and you decide you still want it, if it is not legal, depending on inspectors/zoning/judges, you might be required to demolish it and pay fines for it being there in the first place.  IMO The owners seem to know what they are doing so I would be worried about this.  

Sorry we can't be more optimistic for you.  It is hard to find the gems in certain neighborhoods.  Good luck, please post what you decide to do.

While we haven't had a similar experience, we've read a lot about problems like this. Windy City Consulting on Western in Chicago seems to have a lot of success with these type of problems.  We have not used this company or their services directly, so this isn't an endorsement or a recommendation - just a company that you might want to check out to see what they say.  They advertise that they can help with clearing the violations in court and expediting your permit.  They have been around a long time and seem to do a lot in our neighborhood.  (I don't know that in Chicago that guarantees success in other neighborhoods...)

Thank you @Michael Karl @Thomas S. idea and see that as one reason to actually start going to RE networking events.  

Also going to check out Secure Pay One and Handyman Matters.  

Thanks again!

It seems that the BP community really supports use of property management services.  We (a couple) have a very small portfolio and are owner occupants in one of our buildings.  We question why some people with small local portfolios would use a PM considering all the stories on here about bad PMs.  Recognizing that everyone's needs are different of course...

Anyway. For other landlords/REI who don't have a service, what do you do when you want to take a vacation? A real vacation where you really want to (or by virtue of location, need to) disconnect? We've done some things in the past with giving keys to trusted family members and other emergency contact #s to tenants. We are looking for a real long term solution without just keeping our fingers crossed. We've fixed/stabilized a lot at the buildings, but there is always a chance for the real emergencies or now with winter - snow fall.

What do you do and what are your thoughts?  Anyone use something like just a pay per service?  

Thanks for taking the time to read and to anyone sharing their insights. 

@Joe H. Can you PM us?  Would like to talk to you about your PM services.  Something near Logan Square.  Thanks.

@Joe H.

What city neighborhoods do you manage property in?

Peter, sorry, it looks like you are from IL.  If it is owner occupied and less than 6 units, CTLO doesn't apply.  Would still try to follow the ordinance since you might run into trouble later on.  It would be to your advantage to inspect your tenant's units to see what their housekeeping is like.