All Forum Posts by: Steve Kachniewicz

I love condo's, I have 4 and get incredible rents and almost no calls from tenants with issues as the association takes care of almost everything! In Chicago or other high priced rental markets its a great way to invest in my opinion. Can't imagine having to deal with all the issues that come up with a house. 

I will be honest, In any A or B class market it will virtually be impossible to make any positive cash flow on SFH's. In Chicago or Chicagoland. Way too expensive and property taxes are just too high. Condo's and town homes are more realistic. I cash flow positive on 3 condo's in Park Ridge but no way i do the same on a home unless i own at least 50-60 equity on the home and even then i doubt it. Plus Condo's are much easier to manage. I am looking to Des Plaines and Niles now for more deals.

well adding $100 the monthly rent does not sound like much but to low income people it is a whole lot of money. Not saying these people are low income but it doesnt sound like they are upper middle class. And it just depends how long it would take to get your ROI on the money you spend to rehab each unit. At a $100 per unit increase, probably a long time. Your better strategy is to make the investment and rehab the whole complex and then sell it to a REIT or conglemorate. They are paying big money for large rental communities. That would be my strategy.

I agree. Get the tenant out! Start fresh with a new screened tenant by you and not the previous owner. She will most likely never pay you a dime. Keep the security deposit obviously if there is one.....

As Gordon Gekko said in Wall Street..... "It's all about bucks kid. The rest is conversation". That's how you have to look at it. With Realestate it's all about the deal or it's not even worth pursuing.

Areas like Maywod, Bellwood, River Grove, Des Plaines, Niles, in the north west suburbs are good for fixed and flips and affordable priced and in the city Logan Square, Humbolt Park, Bronzeville, Rodgers Park, are still somewhat affordable and up and coming neighborhoods. Plenty of inventory but prices are creeping up. Best of luck! Winters are horrible so just be prepared.

Probably should have had a plan first. Maybe you can get a short term loan to rehab them. Either way money doesn't grow on trees so you will either have to borrow it or work for it or sell something. I don't know but it's up to you to figure it out. Best to have a plan before leaping though.

People are very particular about their car. I would avoid it. Maybe post them in area businesses or something like that.

Move on. Why take the chance? Not even worth all the time you are putting into thinking about it.

I would take the 80% finance which is $640,000 on an agreed price of 800k and have him finance $160,000 at 5% interest over 7 years. That's $2000.00 a month. He makes 5% which is better than any bank or money market and he also get close to his asking at 800k. He avoids paying commission on a real estate agent as well. Just have your attorney draw up the contract. You can add in all the language you want to with all of the misc. details you want to incorporate.