All Forum Posts by: Karen A.

I've used "Inspectors Inc." on several properties and would highly recommend them.

One thing that I look at closely is the liability related to any of these non-permitted additions.  For example, I bought a home that was listed as a 4 bedroom.  They had turned the garage into a "bedroom" (non-permitted), but the window they installed was not large enough to meet current egress code.  Windows need to be a certain size/type so that someone can get out of it easily in case of a fire.  If the house were ever to catch fire and someone couldn't get out of that window, that liability is on ME (and the litigation involved wouldn't be pretty to say the least.)  Long story short, I bought the house and we turned that "bedroom" back into a garage.  Now it matches the county records and I don't have that liability burden.  Just giving you another angle to think about.  

I haven't bought any houses on piers and probably never will. They tend to be older, and I'd be concerned about moisture and termites due to the exposed wood.  Another thing that I've heard is that when a lot of these houses were built, they weren't designed to carry the weight and vibration of the major appliances we have today.  It's possible that it could cause the piers to settle further, causing the floor (and everything attached to it) to be uneven.  Several years ago we did look at a house on piers (it was a really good price) but decided to pass when we could see how uneven the floor was.  The house was older and had too many unknowns.  The last thing I wanted to jump into was spending the money to jack up the house to make everything level again.  I'm also assuming the house is wood (not concrete block) and wood frame houses do have higher insurance costs (at least in my area they do.)

@Aron Ost

I live an hour south of Tampa, in Bradenton.  Listen to the advice from @Patricia Steiner; she hit the nail right on the head.  Right now, class B properties are selling for $200K.  I was fortunate to buy at the low point (2010-2015) and even then, class B properties were $100K and needed $25K of repairs/upgrades.  You won't find that now.  In your price range you can get a vacant lot or a mobile home in a bad neighborhood, or possibly a condo if you're lucky.  I can't make the numbers work for me right now, so I'm not buying.

Contractors in Florida are a whole other conversation.  I've had A/C people not put enough chemicals in the unit, roofers who failed to put in a necessary ridge vent, contractors who charge you for a permit but never pull one, another roofer used red chalk on a metal roof (permanent stains) and a tile guy who told me my square footage estimate was wrong, had me order 300 more SF of tile, only to find that I was right and I had to return 300 SF of tile.  We caught another guy re-installing rotted wood on a door frame instead of putting in new.  And those are the ones who even show up or answer the phone.  I would/will not allow any contractor work on my properties without checking their work.  You have to be here if you care about what's going on.

Vacancies:  You can fill a vacancy fast if you take felonies, prior evictions, pit bulls, etc.  Pre-COVID it took 1-2 weeks for me to find a more-qualified tenant.  Now it takes me about a month.  The reason you see "managed" properties listed for longer is because: 1) They tend to be higher-priced, and 2) they don't answer the phone and follow up with prospects like I do.  I hear it all the time from potential tenants.  If you're involved and answer the phone, you can fill vacancies faster.

One thing my husband always says about our properties:  "Can't buy me love."  No one else will love or care about your property as much as you do, even if you pay them.  I agree with others who have recommended you start close to home.  Keep an eye on things and learn how to do things yourself.  The more you know, the better you can protect your investment(s) in the future. 

I agree with everyone else about getting it permitted, and also keep in mind that the window (for egress) needs to be a certain size/type to meet code.  Check with your County code office to make sure the existing (or new) window will meet egress code.

@Weng L.  I went through a mortgage broker for the initial loan, then the loan was sold to a bank.

@Henry Dotson  One of mine was a refinance.  30 year fixed.

All of my loans for rental properties were 30 year fixed. I also put down at least 20%; I'm not sure if that was a factor or not.

You should file for your own homestead exemption right away so you don't forget about it and miss the deadline for the following year.  From my experience, you will get the benefit of the previous homeowner's homestead (and their deductions) for 2020, since they were the owner on/after January 1st.  Then in 2021 you will be reassessed (due to the sale of the home) and your own deductions will come into play for 2021.

This has been the way it worked for my 9 purchases as well as a friend's purchase 2 years ago.  She got the benefit of the previous owner's low taxes for her first round of taxes (the former owner had bought the house in the 70s and was a widow) but then the house was reassessed and her taxes nearly doubled from the first year.  I had advised her to start putting more money into her escrow account to cover the increase that was coming, and it turned out I was right and she was prepared.

I'm going to be working with a new CPA in Florida this coming year; I just had a consultation meeting with him about a month ago and feel very comfortable with his abilities.  He's in Sarasota.  Message me if you want his info.

I'll start by saying that I don't know the particular LL/tenant law in Chicago, but I will say that @Theresa Harris' post is spot on.  Send him a letter by certified mail that reminds him of the terms in his lease agreement, the amount owed, by what day you will accept the amount owed, and the consequences for not doing so.  Be prepared to follow through with the "pay or quit" notice as required by your local laws.  If that doesn't get his attention, be prepared to follow through with eviction (per the procedure outlined in your local laws.)

Earlier this year I had to prepare myself when going through a similar scenario.  The tenants damaged a part of my property within 6 weeks of moving in.  I made the repair and billed them for the damages.  They texted me and said they would "pay as they could."  They didn't ask me, they TOLD me what they were going to do.  That did not sit well with me, considering that I was out-of-pocket for their damages. I sent them a second letter (not as friendly) informing them of the amount owed and when it was to paid by.  Anything after that date would put them in default and "put their tenancy in jeopardy."  They paid the amount owed by the due date.