All Forum Posts by: Lumi Ispas

Hi Coley, 

Here's my two cents: If you would flip properties, and reuse the money in different projects, or invest it at a higher rate than what you are paying the bank, I will say use the HELOC.

However, as you are planning to use the money towards the down-payment of another property, the money will be locked for a long period of time and you won't be able to pay off the HELOC, therefore, there are no benefits of having the HELOC.

Good luck to you and message me if you would like the information of some of the top lenders in the City!

Hi Mark,

In Chicago,  the rental market starts April 1st and ends September 1st, however the best deals while buying property are purchased between October 1st - February 1st, as most of owners that will occupy properties have moved, and a lot of investors rest and go in vacation as the Holidays are starting. I base my opinion after 12 winters of selling and renting properties in Chicago, with over 50% of my clients being investors.

Number one moving weekend in Chicago, and entire USA is August 1st, due to the students and school age children starting school at the end of August. 

It will not take you long to rent your place if it's nice and clean and if you advertise it just slightly under the market price. Also, remember the timing of the rental market, make sure you do a shorter or longer lease than one year. If you start the lease January 1st 2015, end it July 31st 2016 and renew it at that time at the market price, or end the lease March 31st 2017, as in Spring you will rent it again for top dollar.

I think it will be better for you to have the place rented over the winter at a lower rent than keep it vacant. Focus only on the quality of the tenant and the terms of the lease.

Good luck to you!

Rick,

First step, why don't you talk to a CPA to make sure you understand exactly what it will cost you tax wise to sell the property?

Second step, if you sell this property, how can you utilize your credit and your freed cash to purchase another property? If you will buy in your market, will you be able to get immediate cash flow, and how much?

Look at all the options and see if it's worth it to sell now and buy another property with a positive cash flow and 4.25% interest rate. The rates should be staying low for another year from what I've heard, and you will have time to buy a new property still at a low rate. 

Good luck to you!

I've contacted a lot of the REI close by Chicago, and very few have responded back. Out of the ones I've visited, in my personal opinion the following has the best content and has a large number of investors attending:

Chicago Creative Investors Association

https://www.ccia-info.com

Now that I found BiggerPockets I can't wait to join the group that @Brie Schmidt is 

Hi Michael, 

Some of the rental income ( 75%) should count towards the future income. Contact me to let me know what bank you called on and I will send you info of some top lenders in Chicago that can get the loan done.

Six unit building with large, 900sq units, 5 rooms, 2 bed/1 bath units, all separate utilities and new porch for sale in Auburn Gresham.

High basements, huge lot, beautiful building that could give a large return. Needs 25K in updating.

Asking price $140,000. Cash only! Agent owned!

Contact me for more details.

Hi David,

These homeowners will forget what they told you and they will loose your phone number, so I will think that you should continue marketing to them. Sometimes, homeowners in distress don't want to see the problem, however as the banks call them incessantly, they will start looking for solutions. Just give them time.

Good luck to you!

Michael, one more thing. If you want your property insurance bill to be lower, you can increase the deductible.

These two factors matter most when you see two people getting different quotes on the same property: credit score and the amount of deductible.

The only other way to lower your bill is to make improvements to the building.

Hope this helps!

That's low. Is the building new construction? Does it have lots of isolation and double pane windows?

The cost seems low. My yearly bill for a four flat is double than that...

Also, in Chicago there is a low that the seller has to disclose the heat bill. The owner can call People Gas and they will send him or his Realtor a Disclosure that shows how much was the gas over the last 12 months.

Regarding the property insurance, the amount will differ depending on the owner's credit score, the zip code the building is located in,  exterior type, age of roof, boiler, year built, etc

Good luck to you!

I heard of them before and looked at the addresses listed on their website. They sell the highest priced homes in the market where these homes are located. I did not visit any, and I am not sure about the quality of the rehab.

As a Realtor I did few CMAs on some buildings, just because I own a property close to some of the buildings these guys sold in the past and I thought maybe the prices are back so much and I have this equity I was not aware of. My CMA did not even come close.

I can see that most properties are 2-3 flats, all brick and rented for top price in the area. As long as this company continues to manage these properties and they will keep re-rent them for you and you will hold them for a long, long time, I will say you guys are okay buying them.

If you want to get a better price, than just find a Realtor that knows the market and get them find you good rehabs that they can also rent for you. You might save tens of thousands of dollars in price, however you might have those units vacant at closing and you'll have to pay the fees to rent these places. Also, you can hire yourself a property management in the area.