All Forum Posts by: Michael K.

Of all the clients I have worked with since the pandemic, not one has bought into a property with negative cash flow. Not saying I haven't seen some out there but they're still avoidable. 

A common utility room with furnaces, water heaters, and utility meters is nice to have, that way it's easier to have them serviced etc. Brick sounds nice until you realize how expensive it is to tuckpoint an entire 3 or 4-story brick building. Buyers like brick but I don't think renters particularly care. I also appreciate buying from landlords who have made smart or necessary upgrades and not just done lipstick on a pig flips.

Hi BP Community! 

I'm extending an invitation to my monthly webinar series where each month I cover a different, popular topic in real estate investing. This Saturday, March 5th @11am, I will be holding a live webinar "Getting Started in Short Term Rental - Is it Profitable?" In this session I will share my personal experiences operating an Airbnb and cover the following topics:

1) Getting started, choosing a platform, marketing your rental

2) How to evaluate properties and markets for earnings potential.

3) Management of STRs and operational costs.

3) Local rules for launching an Airbnb in Chicago

5) Market Outlook

I hope to see you on the call! As a friendly reminder, everyone is welcome. These events are designed for people just getting started in REI as well as people who have already acquired their 1st, 2nd, or Nth property!

Join Zoom Meeting -->

https://us06web.zoom.us/j/4339239023?pwd=THlPanphQnRqeG1TcHh5L0NRWjFDdz09

Time: Saturday, March 5th, 11:00am - 11:45am

Meeting ID: 433 923 9023

Passcode: REI

This is a recurring event on the first Saturday of each month at 11 am.

Upcoming Topics

4/2 Accounting and Tax Prep for Real Estate Investors

5/7 1031 Exchange: How and Why?

6/4 Renovation Loans

@Mike Kratz what feedback have you been getting? Do those lenders just not do portfolio loans? I have a lender I work with who does a lot of commercial lending. I will PM you their info.

@Kevin Kong I find that there are still cash flow healthy deals to be had here in Chicago. These are typically found when you look further south and west. Also, consider your personal knowledge an asset. You might be able to make a better decision about where to invest in Chicago than a location you know less about.

That said, I think buying in your own backyard is the best idea. So, if you are planning a move across the country then maybe look in the area you plan to move to. Best of luck!

@Ryan D. Hey Ryan, wild story, wish the best for you and your family. Got a couple of ideas for you. If you are currently renting then my first move would be to get you into something you own where the rent from the other units offsets or eliminates your mortgage payment. This will provide you with security and reduce your financial stress while you try to stabilize your regular income. In general, the midwest is more of a cash flow play than an appreciation play. Without steady income getting a loan will be hard so look to see what sort of 2-4 units are in your range of affordability and just pay in cash. You can refinance money out later after your income stabilizes. Feel free to reach out if you need someone to bounce ideas off of. 

@Farney Ruiz

Do you want it to be a single-family or do you want it to be 2-unit? Wasn't entirely sure by your description. When I am closing on a multi-unit I will require sellers to provide the zoning cert proving that it is zoned whatever they say it is. Applying for a zoning change or variance can be difficult, so If the sellers did this they should definitely know about it and be able to provide the evidence.

What is the nature of the addition? Did they dormer the roof? build out an attic? or actually add an additional floor?

If you are making routine improvements on the interior of a home you typically will not need to pull permits (though technically you are supposed to). Use of permits is not strongly enforced by the city of Chicago, and, except in special circumstances, buyers will not request proof of them when purchasing a home.

Additionally, you can check to see what the zoning is on the city zoning map https://gisapps.chicago.gov/Zo...

Hi Kimberly, I'm hosting a webinar this Saturday on getting started with short-term rental/Airbnb, you should check it out! I have short and long-term rentals in Indiana and Chicago. Sending you a message.

@Jodi Taylor congratulations on the deal, love to see this kind of hustle. Do you know what kind of cap rate you're getting on the building (assuming all units are rented out)? What are the current rents and unit layouts?