All Forum Posts by: Roseann Koefoed

I’m under contract on a 6-unit building in Chicago’s south side.  I like everything about it, minus the gas bills.  In recent winter months, $1200/month.  Averaging $9,600 for the year.

I don’t know the boiler brand / energy efficiency (yet), but I’m told it’s about 10 years old.  

Have any of you had luck battling Chicago’s increasing gas bills by either buying a new, more energy-efficient boiler or changing the heat system entirely?  Or changing the gas-powered hot water heater to an electric water heater?

The apartments are all updated and look great, so I would not be interested in gutting the walls and trying to install a forced heat system.  I own other similarly sized buildings on the south side, but the heat is separated / forced air in those.  So this would be my first experience with a boiler in Chicago.

Appreciate any advice!

I've been thinking about STR in Chicago, so this is very helpful. Thanks for posting.

I'm looking for lenders that would offer a line of credit on rental property. This is for two identical, side-by-side 4-units (8-units total) in far-south Chicagoland that I purchased in 2017. I've got about $550k of equity in the deal that I'd like to tap into. I think I could qualify for a $200k line assuming an LTV max of 65%. I've grown my portfolio significantly over the last year (almost 50 units now), and this equity seems to be the most realistic source of capital for my next acquisition.

The properties currently have 30-year fixed mortgages at 3.50%.  I don't want to mess with that debt, which is why I'd prefer to take a line of credit instead of a straight refinance.  I've been successful doing cash-out refis, so my hope is that I would only need the line for 2 years max.

I've talked to a couple of regional banks, both of which told me they were doing these types of lines earlier in the year but have stopped for "reasons".  Any referrals/thoughts welcome.

Thank you John Warren!  That's exactly the kind of thing I was hoping to hear.  I'd say I have a 50/50 chance of sub-metering (which would be the ultimate win), but if not I'm feeling confident I can still make a huge dent in the bill with low-flow toilets and a comprehensive plumbing inspection.

I'm under contract to buy 32-units in the southwest suburbs of Chicago (by far my biggest purchase).  This particular town is pulling water from an adjacent river and the resultant water bills are off the charts, almost $40k per year for all four buildings!  All 32 units are 2-bed, 1-baths.

I've underwritten this cost as-is and still want the buildings.  But it would be a home run if I could get the water cost under control.  Any tips from landlords that have successfully reigned in water costs?

I’m selling a 3-flat on north side of Chicago (that was making about $1300/month) and looking to 1031 into 2-3 properties that will generate cash flow of at least $3k+ month. So cash flow is my main focus. And I’ve got a demanding day job and three kids, so can’t manage a large renovation myself right now.

I want to stay in Chicagoland. And the best cash flow opportunities seem to be in the south side of Chicago. I’m looking at a 7-unit in the Jackson Park / South Shore neighborhood that is turn-key. Everything is new and it’s stabilized with 4-section 8 tenants, 3-market tenants. Group that did all the work would stay on and manage for 5%. This deal would make about $2k/month and use 60% of my exchange proceeds.

This would be our first experience with the section 8 process. But with management in place, it’s less scary. And I’m intrigued that the group that did the work to renovate would stay on and manage. Tells me they stand behind what they’re doing.

I’m anxious to hear other people’s thoughts, opinions and lessons learned on investing in the south side of chicago. Also, curious to know your experience with real estate taxes on south side. Did they go up a ton after you purchased?

Thank you!