All Forum Posts by: Joseph Konney

Can you confirm that the property is zoned appropriately for 3 units? If not, you may have bigger issues. Feel free to pm me the address and I can check it out for you.

Hi @Jessica Markley - What were you looking for or shortcomings you experienced?

Hi @Robert Regis - I definitely recommend using an agent that is also an investor. They will have more personal experience and hopefully cater to your needs and growth better.

@Dan Kevin - You are on the right track - multifamily is definitely the way to go. I could write for an hour, but here are a few thoughts:

- If you invest in the City of Chicago, make sure your lease is specific to Chicago and the "Chicago Landlord Tenant Rights Ordinance" (read up on it).

- If you invest in Cook County, be ware of the new background check and tenant selection criteria laws. Feel free to PM me and I can forward you some templates and guidelines from my attorney. See: https://www.cookcountyil.gov/content/just-housing-amendment-human-rights-ordinance

- Schedule your free ComEd energy assessment and get free areators, insulation, smart power strips, water saving showheads, etc. See: https://www.comed.com/WaysToSave/ForYourHome/Pages/EnergyAssessments.aspx

- If buying on the MLS, make sure to use an agent that is an investor himself and can advise you on current and future tenant issues.

- If financing and you are depending on the income from the units to qualify, make sure to check the zoning of the property before putting in an offer (and spending money on a home inspection). If the property is zoned for single family or 2-units and you are purchasing a 3-unit, the bank may not consider the income from the 3rd unit as it is non-conforming even though it may be legal. 

- You may not be aware that multifamily housing is highly addictive. After you stabilize your currently planned purchase, prepare yourself for the reality that will be selling your condo to purchase another multifamily to greatly improve your returns!

I have 24 rental units in Chicago/Chicagoland so feel free to reach out if you have any specific questions or if there is anything I can do to help.

Taxes can be high. I have multifamily property taxed yearly at less than $1,000 per unit in Chicago - I'd call that a win. What do you expect to pay in tax after your property purchase is re-assessed?

Hi @Dave E. - Congratulations on starting your REI journey!

I am rehabbing a 2-flat on the south side near 'the bush' and plan to be completed within the next 90 days. What kind of numbers are you seeking? Are you also considering MLS deals?

The TLOxp minimum monthly fee is around $100 - I wouldn't consider this a casual use service. They also require the subscription be in a business entity registered with the state (LLC/DBA/Etc) and may reject a home office space. Fiverr has taskers willing to relay TLOxp reports for as little as $5. I'm considering the later route for some of my accounts that are in collections status. Does anyone have feedback on that route?

@Patrice Boenzi I've had a number of evictions. Court, attorney, sheriff, and other costs total I would estimate average $1200. Lost rent averages 6 months (including the amount they were already behind when the case started). Typically, those who are evicted leave the place in less then stellar condition and may have left a bunch of stuff behind for you deal with as well. 

I only rent apartments and they are priced less than average. That being said, $10K could be in the ball park when you add it all together for the average eviction - but I typically don't reach that figure personally.

Wouldn't it be great if we could streamline the process down to have a court decision within no more than 30 days from the 5 day notice and have the option to privatize the sheriff's job of removing the tenant if they don't leave? I don't understand how the governing body figures waiting three months for the sheriff coming out to be reasonable - and you have to pay them a fee on top of it!

For landlords in Cook County, it's one more layer of risk that needs to be accounted for. Ultimately, it may translate into higher rents and/or lower property values to have to account for that risk. The real kicker is that the eviction process can take six months so your good tenants can just leave if if you end up with a bad apple. In my opinion, people should be held accountable for their actions and we need to implement a timely eviction process so that landlords can be positive game changers.

@Blaze PavarsI stand corrected about Roselle not being in Cook County - @Mark Ainley - the vast majority is in DuPage County, but there is a small section in Cook. 

For Roselle, the average sales price on the MLS has went up 13.9% from December 2018 to December 2019. It's up about 11% since the Market high in 2009. It's up about 60% from the market low in 2012.

Cook Couny had a .2% loss in sales price over the last year, but generally speaking has been on the rise since 2012. The forecast includes a < 1% rise over the next year. Let's not forget that counties are big and there will be plenty of opportunities within the county that may see a much higher gain. 

To be clear, Roselle is not in Cook County. Property values are up year over year overall and specifically in DuPage country which Roselle is in. I lived in nearby Wood Dale and loved the area. I moved closer to the city due to my wife's downtown job. I'd prefer the suburbs for livability.