All Forum Posts by: John Warren

@Dan Stelmach first of all congratulations on your excellent investment. I would think carefully about selling versus doing a cash out refinance. The reason folks prefer not selling, is you avoid all the transaction costs..... why burn 6-8% of your profits if you can avoid it by holding onto the asset? 

As an agent, I always want my clients to know what their properties are worth because (of course) I want to sell the properties, but I also like people to know the best tax strategies. 9 times out of 10, you are better off holding the property for a while to get increased appreciation, cash flow, better debt, more cash flow, etc. 

@Anastasia Rodriguez I like the areas you are looking to invest in a lot. The whole UIC area is still undervalued I think, especially if you can buy on the fringe a bit. 

For the MTR strategy, I would focus on going to meetups to meet partners. I feel like real estate is such a people business. Online is ok for making some initial connections, but you would want to really know who your partner is to see if you want to be in a long-term partnership relationship with them. The values they have and the way they treat people (you) matters over the years, even more than the investment typically. 

@Melissa Wongkamalasai it has been challenging to buy small multi units in Chicago for a few years now, and only the very best deals will pencil. In addition, it is pretty much impossible to purchase a 2-4 unit where you have to do nothing and get an immediate COC return. We are in a time period now where a longer time horizon is important. If you buy a good building at a fair price, you will be fine over two, three or four years.

@Gary Stark what area will the property likely be in? That will matter to some extent as PM companies cover specific areas. 

I would definitely second Paul and tell you to connect with @Mark Ainley. He runs a really great podcast called Straight Up Chicago Investor's where they cover different areas of the city, and he is very experienced here in Chicago in all the different neighborhoods. 

@Regina Bailey deliver 48-hour notices to enter every day for the next 2 weeks and then start opening the door when you see the tenant there. This is legal and will get the job done. Your tenant is avoiding service to avoid starting he process. 

You can also hire a special process server for maybe $75-100. 

@Amanda Biondo welcome to the forums! What area do you live in/want to work in? What type of real estate are you hoping to do? That will determine what type of brokerage is the right fit as you learn. You will need to decide if you want a shop that has a lot of training, or if you want a small boutique shop, or even a flat fee brokerage. 

I am not sure if you have been following the news, but the whole world has just changed for agents with the way rental and buy side commission is done. There has never been a standard commission of course (anti-trust laws), but now it is a very different time than it was the last few years!

@Andre Taylor I can send you the guy our client in Cicero used. We had a fire at a 12 flat, and he got a nice payout to get the work completed. 

@Ali Farhat adding a basement unit starts with a great architect and a great GC. It is an expensive project, and probably only pencils if you have a 6 figure budget... this isn't what most investors want to hear though. You will quickly learn about footings, water service replacement, electrical load calculations, and a bunch of things you don't know about. 

This topic comes up a decent amount here in Chicago because of the amount of grandfathered in "non-conforming" units. The amount it costs to "do it right" normally makes new garden units cost prohibitive. 

@Rance Smith thanks for sharing your story. July 2 of 2023 was a rough time for Austina and the town of Cicero. We had 21 units that took water that day, and it was a rough month. You get through these things and focus on building forward. It sounds like you will be a successful owner which is amazing! 

Are you a member of GADA in Austin? Definitely worth checking out as local building owners and business owners meet up there to help build the community. I am hoping to go to this month's meetup. 

@Regina Bailey you can send the 5 day via certified mail. Are you sure the tenant is still living there? Did you do a wellness check? I would start there. I would immediately send the 5 day via certified mail or hire a special process server to serve it for $75 so its done. Then you can file and get the tenant into court. 

If the tenant has vacated, you post a notice of abandonment ASAP. You might even start there by posting a notice and placing a bit of clear tape on all the entry doors at the top so you can see if they are entering or exiting.