All Forum Posts by: Steve Kachniewicz

Thanks for all of your great responses!

Hi everyone, Im new to biggerpockets and somewhat new to investing in realestate but i have 2 condo's in class A type building in an affluent suburb of Chicago. I rehabbed both units and never have a problem renting them. This time around i had 9 different people look at the unit all wanting to rent it. I gave each one a rental application and they all sent them back. My question is am i obligated to rent to the first person who looked at the unit or can i just choose who i want based on who i liked the best. I am in no way trying to discriminate, i just want the best qualified and best tenant i feel will fit in the unit. Any advise would be very much appreciated. Thanks!

Unless you are born with a silver spoon in your mouth, there is no way you can get Into Realestate without getting into some kind of debt. But debt isn't always bad. There is good and bad debt. Dave in my opinion Is for people who are trying to get out of problem debt not people like us who use debt to build wealth. I would rather take a course in wealth building than debt reduction at this point.

the assoc. has had a few special assessments over the years but for the most part nothing major. I just spent 12k on sewage back flow protection and a new sewer line for my home. I've never had any expense like that with a condo. I just find condos to be so easy. I never get calls from tenants and I get good rent. What more can you ask? 

condos can make you money If you know your market and do the numbers. I own 2 condos and I cash flow positive on both. Plus I never have issues with tenants because the assoc takes care of almost everything. You just have to find the right deals. With a house you have much higher taxes and many things can go wrong. Single family homes are a money pit pure and simple. I lived in a condo for 7 years and barley spent a dime. I bought a home and all I do is spend money fixing this and replacing that. Houses are more time consuming as well because the tenants could care less about the lawn, landscaping and keeping up with general maintenance. What control do you have in owning a single family home? The furnace breaks you fix it. Gutters leak you fix it. Tree crashes through the roof you fix it. Ect.....

IMO they are way more trouble than they are worth. You might make a little more on the cash flow but the damage these low-income tenants do to your property in my opinion is not worth all of the headaches. Not to mention most of my low income landlord friends spend a great deal of time taking phone calls from tenants complaining about everything under the sun. Then there is collecting rent. A friend of mine packs some serious heat when he goes and collects. I prefer higher end condos in good neighborhoods that command high rents from decent tenants. In 3 years with two units 2 beds 2 baths rehabbed top floor units I have gotten 1 call from a tenant with a small plumbing issue that the association took care of.

I have 2 condos that I payed around $145.00 for each unit and I get $1500.00. Per unit for rent. It sounds like you may have payed quite a premium for the unit. If you can be cash positive on the unit I would keep it and draw income. If not take the sale and move on. Condo's only work if they are cash flow positive from the start as they do not appreciate much. But can be a good investment if bought for the right price.

I have 2 Condos's in Park Ridge Il. Both get $1500 a month and the assoc. fee's are $388.00 per unit. That includes everything maintenance related and heat, Air, and water. Not a bad deal. In 5 years i had 1 tenant call me with a problem and that was a leak in the tub that i fixed for $75.00. Plus the taxes are 1 quarter of what a SFH in the same town would be. I just don't get what is wrong with condo investing. Sure i may get a special assesment for a water heater or furnace problem but its no different than a major problem happening at a SFH. I probably would have to pay more. I dont have to worry if the grass is being cut, the sidewalk is being shoveled, the weeds are being pulled, the furnace is being maintained, the gutters are being cleaned ect....