All Forum Posts by: Mario Morales

2-Not sure what your laws are, but make sure you charge a late fee and send the appropriate notices when rent is late, even if they call you, tell them there is a late fee but you appreciate the call

3- Definitely put money aside, they will break something. Before you call a service repair, go look at it yourself.

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Houston, Texas

Doesn't seem like its happening soon but is anyone thinking of getting ahead on this? If so, what are your plans, induction stoves?

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HERE

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I have a mix use property, 3 units. 2 residential and 1 office space. My broker tells me that I am paying more insurance because of the commercial unit, which is just a tax office closed from May-November. They pay rent all year but I am wondering how much more am I paying in premiums a year, 20-30 % ? I bought the building 2 years ago and I inherited the lease, have 2 more years. Since they are closed during a large part of the year should I get a discount?

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Chicago, Illinois

The average family will spend about $50 a month on a coin operated machines. You can install machines in your units and get a $100 more a month in rent or so.

1 Vote

New York City, New York

Quote from @Jennie Berger:

Hey @Mario Morales: We have mixed feelings about LVP in basements. Prior to the 9/11 floods (in Chicago), we had always used LVP. The 'waterproof' kind (or so the manufacturer says). More like water 'resistant-ish'...as long as you don't let too much water sit on the floor for too long...

One of our gut rehabs that we sold last November had a sump pump failure and their basement flooded. The LVP held up initially, but because they didn't get the water out soon enough (like, the same day), it really took a toll. They ended up having to remove and replace most of their basement flooring. Honestly, no sump pump could have withstood the amount of water many Chicago basements encountered that day. The city sewer (and water) lines are incredibly old and defunct. So even with a gut rehabbed home that has a fully waterproofed basement (drain tile, sump pump, etc.), nobody is impervious.

Ironically, we built a new construction home RIGHT NEXT DOOR to this gut rehabbed property (at the same time) and installed LVP in their basement as well. They had ZERO issues on 9/11. Of course, they also had a brand new water and sewer line installed when we built the house. Though the new line is still connected ultimately to the city's older sewer lines, we install an overhead sewer with ejector pump on the new construction properties, so that helps as well. I believe these factors, in conjunction 'possibly' with the placement of the property (perhaps it was on slightly higher ground?), were their saving graces.

Bottom Line: If you're installing waterproof/resistant LVP in a basement, absolutely use a moisture barrier / underlayment AND make sure--if you're holding the property as a rental--to get water out of there ASAP.

Jennie Berger

Property People

Thank you so much for your time. I really appreciate you sharing your experience with me!

1 Vote

Chicago, Illinois

Quote from @Victor So:

Quote from @Mario Morales:

I will be renovating a basement in Chicago and kind of crunched some numbers. It looks like to replace old tile with porcelain might run me at $11 a sq ft versus lvp from flooret (assuming the floor is leveled) at around $9 sq ft. Has anyone used LVP in basements? I have porcelain in my other basements, just wondering if I should stay the course or use LVP.

Hey Mario, I love LVP. However, I had an issue a couple years ago where I had installed LVP in my basement and my basement flooded due to water backup from the main sewer line. LVP is water proof and durable, sure. But, the water got under them and lifted the flooring. We eventually replaced the LVP with tile. The basement flooded again once more (and finally got the issue fixed) but lucky the tile handled the flooding well. I'm always nervous about Chicago basements and always open the possibility of flooding so I always use tile now.

Thanks for your advise, I really appreciate it!

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Chicago, Illinois

To calculate Cash On Cash return, lets say I buy a property in 2022, I rehab one unit and the following year the other unit. Am I too calculate 2 COC's, one for each year. Or is COC only used in the year the asset was purchased? If I only rehab one unit, the first year, it could make my COC look good but is that a false positive?

I think I know the answer but this is the place I get answers!

1 Vote

Chicago, Illinois

It's not a hotel, say No to unreasonable requests from the start. Especially younger tenants, they feel they should get everything they ask for

1 Vote

All Forum Posts by: Mario Morales

Mario Morales has started 82 posts and replied 213 times.

Post: Chicago House Hacking with 10% down

Post: First Time Landlord Looking For Advice

Post: Potential Ban on Gas Stoves

Post: BiggerPockets bookclub thread for Real Estate By the Numbers?

Post: Insurance premiums on commercial vrs residential

Post: Coin Operated Washer and Dryer

Post: LVP vs Porcelain for basements- 2018 vs 2023

Post: LVP vs Porcelain for basements- 2018 vs 2023

Post: COC Question-How to calculate?

Post: What Was the Biggest Lesson You Learned As a First Time Landlord?