All Forum Posts by: Ryan Chorbagian

Thanks Brie.

I am currently living in the property. Thanks for the info. I've reached out to Michael. 

Following up on my last post here. In the spirit of brevity, I'll bullet poi nt my current situtation:

-House hacking a 3-flat in Chicago; the rents pay the mortgage and I profit 40 dollars a month

-If I move out, the building will cash flow about $1000 per month

-Purchased using FHA financing 3 years ago

-Refinanced out of PMI a year ago

-A year ago, the house appraised for 60k over what I paid for it

-Have about 70k in equity now

-Planning on holding onto this property for the cash flow

I want to use FHA financing for my next deal, which I will move into and hack similar to my situation now. Should I use the equity I have in this place and borrow against it to get the down payment on the next property? What are the pitfalls involved in that strategy if any?

Is there a better strategy I'm not considering?    

Any questions that will help clarify my situation please ask. 

Oh awesome. Im at Belmont/Milwaukee. Will DM

 In the Avondale neighborhood of Chicago. 

Hello all.

I've done 1 real estate deal. Currently house hacking a 3-flat, north side Chicago. I purchased this home using FHA. I have refinanced out of PMI and I'm ready to start looking for my next investment property. Interested in another 3 flat in the city of Chicago. I'm looking for an investment-minded agent who has the patience to work with a new investor. I aim to build a team that will help me build a portfolio strong enough to quit my day job in 5-7 years. Any other info needed, please ask.

Thanks for any suggestions. 

 Hi Elizabeth.

We're focusing on multi-units right now. I haven't been able to find any SFR deals, in neighborhoods we are willing to buy in, that make financial sense. Potential rental income seems to hover right around expected mortgage costs. At least thats what I've found. But good to know about the 5% thing. Thanks.

Hi everyone.

My wife and I closed on our first income property in April (Chicago 2-flat plus a 2-bedroom garden unit) Being that we've offset our housing costs almost entirely, we've grown hungry for our next deal! We have an FHA loan. Neither of us make enough money at our day jobs to save for a conventional loan at this point. We purchased the property in a hot, up & coming area of Chicago (right along the hipster highway) and would really like to have at least one more building around here before the prices skyrocket. I'm curious about our options. I know that only one FHA-backed loan is allowed at once, and that we must occupy the property. But what about when the equity equals 20% of the sale price? Is that when PMI drops off and we can seek another loan? Or do I have that wrong? Also, what is the process for borrowing against equity in our current property when we want to invest in another multi-unit property. Is it always 20% down?

What would you do? Should I just sit on my hands and relax? Getting antsy over here.  Talk me off the ledge please.

Thanks as always.  

Thanks Lumi.  Your point about the strangeness of returning the deposit is well taken.  I'll scratch that idea.   

When you take deposits, do you keep them i a dedicated account?  

I'm curious what happens when I move out of this property.  If all goes according to plan, I wont be in the residence more than 1.5 years. I'm assuming the law would then take effect and maybe retroactively?  

Hello everyone.  

I'm closing on my first investment property in two weeks.  Thanks for all the help leading up to this.  

Question:  I'm inheriting tenants in one of the units of the building.  The seller has offered to transfer the security deposits to me. After researching and reading a ton of info about the difficulty landlords in Chicago have re: deposits, I'm hesitant to accept it.  Im considering returning the deposit to the tenant and hoping for the best, as I don't feel comfortable asking for a "move-in fee" from someone who is obviously already moved in. I cant find any definitive answer as to whether or not the security deposit interest rule applies to owner occupied 2-4 flat properties (like the one I'm buying).  I've heard it both ways and I'd like to be able to hold on to the deposit, but its not worth it to me if I will have legal issues down the line. Is anyone for sure for sure?  

Thanks very much for reading.  

P.S. Info from this website is the reason I am closing on this property.  Im super grateful.