All Forum Posts by: PJ Kolnik

Million+ seems to get you about a 6-6.5 on the northwest side of Chicago.

Derek, I own a condo and a newly purchased three flat. Condo in Bucktown and Three Flat in Logan Square. In regards to renting Condos, I’m not convinced that there is a huge upside to renting them to make money. Maybe you breakeven on most condos if you’re lucky, the only people I really see renting condos in the price range of that 350-550k are people that had to leave a bit unexpectedly after they bought the place but didn’t want to sell. Most of them are breaking even or even losing a bit of cash. The reality is that the price per unit on a three flat, even on some of the outrageous priced ones in Wicker park UK village are still getting you units at 300k a piece. In this city if you’re looking to make money off rentals buying in scale seems pretty important. There is just so much competition in the people who want their first home as a condo right now, especially in these neighborhoods that you’re talking about. That being said the only guy I’ve seen make money off of condos was going around buying garbage garden units around the city in great locations and doing decent 6-7 CAP.

@Ozzy Sirimsi

1) The screening part will probably be my biggest hurdle and is likely a few months out as I have a month or two of carrying costs while I fix the place up. However, probably my biggest source of uncertainty and anxiety at this point as a newbie.

2) @Brie Schmidt provided some great lease paperwork, I've been reading through it... knowing myself, I'm glad I bought the property first before reading all the paperwork or I may have never done this haha.

3) Good advice

4) I can fix things and I have a good base of tools, my current amazon wishlist is basically all tools for Christmas - basically turning into my Dad.

Thanks for all the advice.

I live in Chicago and we have a lot of great MFR here. Pretty much stay on the north side of I-290 and you will find decent neighborhoods. Your price range is likely going to put you in neighborhoods like Bronzeville, Woodlawn, or East Garfield Park. Usually these prices are decent but you will need to hire a good property manager as well.

@Lumi Ispas thanks for the reply.

1) I was thinking I would use the app Cozy to do the tenant credit checks, background, and payment. I am wondering though, what is a good credit score range that I should be willing to accept. What is your minimum?

2) Great advice.

3) I have been building this list out and it is coming along fairly well.

4) what’s this one about? Do I get fines if I don’t do that?

5) Also great advice.

Thanks for all the helpful insight.

@Brie Schmidt wow, thanks so much! These are some really great resources. I actually just listened to your podcast from BP episode 78, great bit of education.

Thanks!

Hi all, I’m just about to close on a 3 unit property here in Chicago. It needs a bit of work with one unit I will live in and another two to rent out. Both have current leases that will run out in March and then I can do a few updates before the Spring leasing starts. I’m new to all of this so what does BP think are the first 5 things I should do/ learn right off the bat?

@Quinton Slay thanks man, lots of work. Definitely reinforced for me that all this is a relationships business in every direction you look.

In regards to this current property we own one condo that we are going to airbnb while we live in the 3-unit to satisfy the FHA loan requirements. The numbers worked out well for a house hack on this property and renting out the other two, but needs a bit of updating. I'm pretty excited and also in the - "what have I just done?" phase since a lot of the renovations are things I have not done before. Lots to learn!

@Quinton Slay, its honestly been a great thing. It was something that I really wanted to get into and she wasn't as excited about it. Very similar to your initial post, very different perspectives on the what this would do for our future. Honestly, it really came down to the fact that this had nothing to do with real estate, it was all about being on the same page. Counselling has been really good though, no amount of deals or money I will acquire will be able to take the place of the relationship with my wife. Through a lot of communication about goals and getting on the same page, she has really become the wind in my sails and I'm closing on our first 3-unit this week.

This issue specifically has my wife and I seeking marriage counselling.