All Forum Posts by: Sean McKee

For me personally, I tend to avoid those kinds of buildings. I just like knowing that I'm not at risk for a potential mandatory deconversion at a later date.  I would mostly be concerned if there are any pre-sale inspections conducted by Forest Park.  I know a few of the Western Suburbs communities require it each time you sell the building. I bought a couple 4 Units in Cicero and one had an illegal basement unit.  I had to remove the stairs, outlets, etc. to bring up to code. Meanwhile in Chicago there are listings all the times with "attic additions with kitchen/bathroom). 

So I would personally just make sure the city won't be involved in the decision making process.  If they are I'd want to know if I can make the unit Legal and if not would the deal work without it.  But every market is different and I know plenty of people making money with "illegal additions". Congratulations and good luck!

@Bob Floss II. I saw the proposal a couple months ago for the Cook County Rtlo. I have a couple properties in Cicero and was hoping it would blow over. It’s definitely upsetting and looks more punitive than the Chicago version. Did they outright ban move in fees or can you still charge less than 1/2 months rent. Some of the language is vague.

@Ricardo Delgado thanks for the pointers. What criteria seems to work best for you?

@Brie Schmidt - that is perfect. Thanks for the link.

@John Warren and @Brie Schmidt- thanks to you both! I would have never thought about that. I’ll definitely have my lawyer look at any lease. There’s clearly a lot of ways to go wrong in Chicago.

Hello Everyone!

I’m closing on a 4 unit in Little Village next week. I have rentals in Cicero and always charge security deposits. However I’m leery to do so in Chicago. It seems too risky with the current laws.  I’m definitely leaning towards move in fees. I’d like to charge 300 to 375. Little Village might be a little less than that. However I definitely would prefer to charge as much as possible.

What do you charge? Or do you stick to security deposits?

@John Clark. I agree with you about Chicago and Cook County in general. The deficits are definitely reflected in the taxes.

And the new COVID-19 tenant laws seem likely to stay after this is all done. This will definitely make Chicago/Cook County much less appealing from a rental aspect. So I’m definitely trying to tread carefully to ensure I get properties that can attract the best tenants.

@Shamar Gregg I kind of figured that would have some of the higher rents. What kind of tenant base do you have? Families?

@Dante Williams. Thanks for your reply . Yes it very helpful. I’ll definitely drive around more to get a feel of the vibe.

Hello BP and fellow Chicagoland Investors.

Through conversations and research I’ve increasingly heard more about East Garfield Park and Austin (especially East Garfield Park). It seems like both areas offer strong cash flows.

I’m aware of the crime in both areas and the potential risks stemming from that.

However from a rental aspect what blocks/areas, if any, attract the best tenant pool? Have you experienced any significant periods of vacancy?

I’ve been to the neighborhoods quite a bit, but never really considered them from a rental aspect. I’d be curious to know what people think.

Thanks

Good Morning BP.

I currently own some property in Cicero. I was able to buy when it was still cheap. However the last few years prices have run up quite a bit, along with the tax bills. I’ve watched my tax bill on one property almost double. Berwyn, Maywood, etc. all have obscenely high tax rates.

When looking at new deals in the area, I’m getting pretty put off by how high the taxes are. Are you still finding it worth your time for buy and hold in the area? Do you think rents will adjust upwards as fast as the tax increases?