All Forum Posts by: Joseph Konney

Prudently investing in a multifamily should save you money. Use the savings to accumulate another down payment quicker. Buy your next multifamily and so forth. 

Use the BP calculator on each property and see where your equity and cash could be in five years with each scenario. 

You're lucky that they willingly gave you the keys and that you didn't have to spend several months time and money evicting. 

I always do a condition checklist of every aspect of all rooms and sign on it with the tenant at move in to clear up any confusion as to the condition before the tenant moved in compared to at move out. 

You would need to take the tenant to small claims court to sue for the property damage and the monetary damages that resulted from their breach of contract (lost rent). If you plan to pursue, hopefully you obtained and verified their SSN and employment information. 

Hi @Anthony Wilson - In addition to paying off or making payments on time for the creditors on your credit report:

There are services which log payments to your credit report for things that unusually don't show up, like rent payments. There are some examples in this article for rent: https://www.nerdwallet.com/blog/finance/credit-report-rent-payments-incorporated/

Particularly, if you are considering home loans in the future, get in touch with a loan officer/broker for ideas. They may suggest expanding or contracting your line of credit and other resources to get you to where you want to be.

Consider a hefty move in fee and also offer a conditional bonus or rent refund upon move out.

For comparison, a loan for an 8 unit multifamily property had an interest rate recently quoted @ 5.25% with 25% down. The interest rate resets in 5 years and is amortized to 15 years.

If you have a multifamily property that you live in with up to six units, you are eligible for the homeowner exemption in Cook County. If you don't live in the rental property at all, you are not eligible. 

@Ahmer Zaidi

Thanks for sharing! 

I get the whole utility concern, but multifamily properties with water not included will most always perform better than a condo. You also save on the hassle of exterior maintenance with a condo, but again, you will likely not see as great of return unless you are buying for a song and a dance. When there are vacancies, you still have to pay HOA dues. If the HOA doesn't like something the tenant is doing, you may still be liable for the fines (which can potentially be quite excessive). In my opinion, other than being potentially "easy maintenance" or bullish on strong area appreciation, I don't see much value in condo buy and hold investing.

Appraisals are typically in favor of the bank and to be cautions they usually don't go too much higher than the purchase price. If it comes out higher than the purchase price, kudos!

Are you still considering a condo for your next investment? Are you getting the ROI you expected and are you happy with that?

Great job breaking it down so clearly!

A lot of great points here. As far as #1, you can go to the county tax page to see what it is being assessed at currently. If you are buying above that price, it will likely be an increase in tax. If lower, try to appeal the tax to lower your burden. Also, keep a pulse on planned tax increases for the following year when possible.

@Sebi Ardelean - I have a client closing on an 8-unit non-owner occupied building right now. He locked in at 5.25% with 25% down at a purchase price of $220k. The interest rate adjusts after 5 years and is amortized at 15 years. With larger purchase prices like 500K+ or 1M+ you will see lower rates. I want to say that I have seen lenders offer .25-.5% less for owner occupants on smaller commercial apartments. Some lenders may not offer a discount.