All Forum Posts by: Roger Morales

Hello all,

Recently bought my first income property in Humboldt Park, in result I also gained some tenants that understand I need to rehab units and move in myself too. I am looking to help one tenant find a new apartment preferably anywhere near North Avenue, 2bd and under $900. They are a 2 parent household with two children under 10yrs old, no pets, both adults are working and have been living in this building I bought for years. I would keep them but I have to totally rehab the garden unit they are in, jack hammering concrete and fixing exposed plumbing as well as gut a badly done bathroom. 

I also have another family 2 parents, three pre-teen kids, no pets who are looking whose budget is higher. Both tenants have paid their rents to me so no worries on them being tough to work with.

Any lead from any landlord here would be greatly appreciated! Most importantly though is helping this garden unit tenants thats 2 adults and 2 children.

Just want to say thank you all for replying to this question, I want to be as equitable and empathetic to tenants as possible because I understand the state we're all in. Knowing what are all the possibilities I have to consider is helpful because of course there are real financial promises I'll need to keep after all is said and done. 

From a born & raised Albany Park Chicagoan to all of you, thank you!  

Any more advice is welcomed. Going to take all this information so far and push forward. Still have the FHA inspection and the appraisal to go through.

 Thank you @Crystal for the sound advice! I was prepared to definitely find ask my agent to help relocate whichever tenant would agree to move and it's great to learn that the cash for keys needs not be cash direct but for the deposit and/or move-in fee!

I feel like I lose nothing in trying to speak with the tenants, explain my situation and see who will be open to this agreement.

Thank you again Crystal for your time!

@Nicole Heasley the seller hasn’t bothered to mention providing rental history but as I’m talking with my attorney today I’ll ask about receiving it. The honestly look like good tenants, the properties are in good shape, and after doing the math if I worked on an agreement where they stayed paying what they currently are until June 22 (CPS school year ends) it won’t be much for me to pay the rest of the mortgage and my cap ex’s.

Crystal Smith raised a good point that I didn’t consider, which is my lender might very well cancel on me because I can’t move in. With that in mind I definitely will have to at least try and convince one tenant to move out by closing. 

Thank you!

@Eric M. Thank you Eric 🙏🏽

@Brie Schmidt they are MTM and that clarification for how to go about doing cash for keys is helpful, I didn’t know I wouldn’t get to that question with the tenants until after I close the deal. By the way I’m a big fan of your team, I heard you on the Straight Up Chicago Investor podcast! Thank you Brie!

@Eric M. Yeah there’s grace I’m willing to consider until the end of the CPS school year.

If we agree on that, I’ll ask that they pay the same rent and ultimately I’ll probably have to cover the difference to make up mortgage.

There’s always the idea to do cash for keys that I haven’t ruled out.

Hi all

I have a 3 unit under contract right now with a 203K Loan and just received the updated contract agreement where the seller has declined to take responsibility of seeing that the tenants in all units will be moved out at time of closing, in result I would be taking responsibility to have them move out. Asking for advice here.

Basics:

Currently tenants are paying month to month WAY below market value. There's clear mold in 2nd floor bathroom that needs to be addressed and basement has exposed sewer piping. Clear lead painting in the back porch. These things are all red flags I know will be raised in the next step with the FHA inspection.

Main concern really are these tenants, if I can’t move them out, I can’t:

a) get full rent to make mortgage

b) I can't move in myself under the FHA 203K rules

c) obviously not address the major issues properly? Or can I still?

Thank you to anyone who sees this and replies!