All Forum Posts by: Marek J.

Originally posted by @Brie Schmidt:

@Jackson Sandland- what area?  

The city assessments are far below the current value.  Both in Chicago and Milwaukee where I invest the tax assessment is never close to the comps.

Hello, What usually happens to taxes after you buy a duplex or triplex ?  How much will they go up ? If assessed value for example is 250k, and now  I buy a triplex in Chicago for 350k would the tax be much higher without any exemptions ? 

Hello can you add me to the email listings ? [email protected]

Originally posted by @Bob Floss II:

@Lewis Yuan Not to be nosy, but I did a search and found the building. I still had a concern with the expenses and it was easier to pull up the property so I could look at the information.

Property taxes are determined by using the Assessed Value given by the county assessor.  The assessed value is 10% of the assessor's opinion on the market value of the property. So a property worth $369,900 will state an assessed value of 36,690. The property taxes on this building seem far to low for what properties typically pay in Cook County.  Sure enough, when I pulled it up, the assessed value of the building is 25,145, meaning they think the building is worth $251,450.  Now, the assessed value is very rarely correct (which is why you should always appeal taxes), so this doesn't mean the building is actually worth that amount. However, it does mean if you buy the building for $369,900, you should expect a spike in your tax bill the year after you buy it. Based on buildings in the area, I would expect your taxes to be between $7,000 and $8,000. I also noticed the seller lives in the building because they are getting a homeowner's exemption.  Last year the seller had their tax bill reduced $503 for this exemption. When you buy the building, this will also be added to the tax bill the following year. So estimate being in the mid 7's for taxes. 

I also noticed you are missing a few expenses. The heat/gas for the building is $1,500 a year and the electric is about $750 a year. If you put those in the expenses, the building has a NOI of about $3,000 a year.

In my opinion, the building is great for an owner occupant that wants to rent out the other two units to offset their mortgage. For an investor that wants to rent out all three units, the numbers don't look great. You can try to low ball them or find a better property.

Wouldn't the tenant pay for the heat and electric ?  The building has separate meters. What would you say a fair price for this building is ? What would be fair rents ? 

Anyone willing to do a $10,000 deductible on a triplex ? Also, who is the best broker in Chicago IL for a triplex ? 

Hello I am Mark. I live in Chicago IL, on the south side. I want to be a real estate investor and make this my second income / business as a long term goal.

I want to start out with a owner/ occupied tri plex or fourplex. I read many books on real estate including the biggerpockets books. 

I have a question, and that is what is considered a good deal for a triplex / fourplex in the Chicago area ? ( $100,000 a unit )?

I see many ranging from $315,000 to $400,000. I wouldn't mind working on it and improving it myself. 

Obviously with the rental property calculator I can analize the deal. 

Should I just shoot for 8- 10% Cash on Cash return?

$200 a month per unit in net profit ? 

I would be paying 20% down on a property to avoid PMI/ MPI

I don't mind the area that much as long as its safe, clean, and functional building.

Some areas that come to mind are Berwyn IL, Archer Heights,  La grange, Bridgeview , Stickney, and any other areas. Anything around Midway Airport and within 35 mile radius or so.

Also, Is there a way to find out which zip-codes have the lowest property taxes ?

What would typical expenses be on a triplex ?

Insurance 

Water/ Sewer

Garbage

Thank you so much. 

Hello, How does one set up real estate as a business ? What are the steps ? Im looking at buying a triplex and was wondering how the business of the real estate is set up. Is there any good books on Business setup ? Long-term I want to build up a portfolio of properties.  I am looking at this from a Investor stand point, maybe a property management company down the road. Thank you

The only reason why I said MBA is because owning a real estate at the end of the day is a business. I want to get into Commercial Multi Family units / renting them and building cashflow. I am reading all the books on REI and I realize that Knowledge is power, what is the best course you'd recommend ?

@Eric Stafford 

@Elizabeth Wilson

Hello, I'm just getting started in real Estate. I been reading a lot of books and articles. I have a question about education, since owning a real estate is a business what education should I get ? Would a MBA with a concentration in Finance be helpful ? Or what would you recommend I realize that knowledge is power. Thank you Marek J

Hello, I'm just getting started in real Estate. I been reading a lot of books and articles. I have a question about education, since owning a real estate is a business what education should I get ? Would a MBA with a concentration in Finance be helpful ? Or what would you recommend I realize that knowledge is power. Thank you