All Forum Posts by: Joseph Konney

If financing, even though it would be considered a commercial loan, you may be able to get a slightly lower rate as well.

Hi Dylan- I have 21 rental units in Chicago on the west side. Feel free to reach out if you'd like to chat or if there is anything I can do to help!

Hi @Edward Pang - 

What to look for also depends in your risk-reward preference. Are you investing for cash flow, appreciation, or a blend? Personally, if I don't cash flow with 25% down, I'm not interested. A few months ago I purchased a 6-unit on the west side of Chicago for $215k (with 5K seller contribution to closing costs) grossing around $57k per year. I made some tweaks and if fully rented (which I am now) I will gross $67,800. You won't find those numbers in Berwyn or Cicero which are, in my opinion, B class neighborhoods. In any particlar area, 5+ multifamily will almost always have better numbers than 1-4 units. 

I have 22 units I rent out, mostly in Chicago, with all cash paying tenants. If you have the time and patience for compliance, inspections, re-inspections, and paperwork, section 8 may be a good option for you. 

Keep in mind that if you below what the county assessor office values the property at, you can appeal the taxes and have them reduced with ease. 

Hi @Xavier Alicea - I have several buildings on the west side of Chicago. Feel free to reach out!

Congratulations on making the big move!

Hi @Hector Estrada-

In my opinion, generally, small commercial multifamily (5+ units) are a potential sweet spot for value. They can be slightly out of reach for many due to not being applicable to most government subidized loans, typically require 25%+ down payments, and often require strong cash reserves by lenders. The big institutions are usually not looking for smaller commercial apartment buildings. Therefore, overall demand may not be as high which could create a potential value opportunity.

On the west and south sides of Chicago, there are several properties that will cash flow after expenses, budgeting, management, and even 25% down mortgage. I see a lot of poorly managed and value add opportunities in these areas. 

As far as property taxes, there is always ongoing regulatory change. However, you can easily check with the cook county (https://ccrecorder.org/) to see the the current property value which the assessor is basing the tax on. The last three 5+ unit buildings I have purchased have all been under the county's value and tax is being REDUCED on appeal. The appeal can be done yourself or there are a number of attorneys who will appeal on your behalf for 1/3 to 1/2 of your first year savings.

There is a nice graphic in this article that shows Cook County Assessor EAV (equalized assessed valuation) changes regionally:
https://www.chicagobusiness.co...

A quit claim deed costs nothing more than the cost to record it and will transfer ownership.

If you sell and your cost basis is zero, you might be liable for tax on the entire price.

If they transfer ownership to a trust which you are the beneficiary of, when they pass away, you inherit at the current market price and only pay capital gains on the gain from that date.

I recommend consulting your accountant to see how this applies to your current situation.

Welcome to BP! Feel to reach out. I have several apartment buildings on Chicago's West side.

Welcome to BP! Feel to reach out. I have several apartment buildings on Chicago's West side.

I have issued notices on the 1st of the month when rent has not been paid. The rent was unpaid when due, you can start notices then. Again, consult your eviction attorney. Feel free to PM for a referral for Cook County.