All Forum Posts by: TIm Harstead

If they don't want to move in give them the option to break the lease and find new tenants,  none of the issues you are saying seem to be repairs needed to make the home livable and enjoyable. just seems like you have picky tenant. 

I tend to look for $100 a door, again this is after assuming the worse in all other numbers and with the hope that it will become more as time goes on and improvements are made.

As a PM: to answer your first question, there is no reason your PM shouldn't be able to add the charge and credit it with out the money actually coming in physically to them, there for they should not have any issue paying the contractor directly and having it on your PNL.  So this does seem to be a little shady.  

As for the amounts on a bigger project like this you should be more involved in the quotes and seeing them.  The way we set up accounts is anything under $500 we take care of with out showing quotes first, this is for issues that come up when tenants call,  anything above that we are showing the homeowner the quotes and having them approve.

@Evan DeVisser: not sure how hot your market is but with 10 showings and no one snatching it up, it seems like the PM may be doing at least an ok job getting people to look but the price may be a little to high for them to close on it.  

Ask your PM if they are getting feedback from any of these tenants. Also in our market Facebook marketplace and Craigslist are much more lucrative than Zillow for finding tenants

I have a ton of clients in Chicago that have used the 203k loan, here is what I would say to all of that

first 203k is only hard if your lender is not great at it, there are some lenders out there that do a big portion of their business in renovation loans. 

in terms of red tape it really depends on the type of renovation you are doing many renovations can be done with a streamline 203k which just needs the bid and your contractor to be licensed.  

203k is higher interest than a normal fha most clients refinance after they complete the work to get the rate back down.

your pre-approval shouldn't have a purchase side and a construction side to it, if your approved for 230K you can buy a house for $1 and renovate with the other 229k the ARV just has to be close to the 229k

Congrats!!

I have a client who is doing the same thing in Chicago, the reason FHA requires you to live there is because the assumption is you will better take care of a place you live in, so as long as your bed is in the building they don't care how many renters you have.

@Anthony Wick, ah ok we call them property condition forms, so when checklists were mentioned I was thrown off.  For some reason I was thinking like you guys give a list of things for the tenants to do like lock doors and drop keys off at the office, etc...  

As a PM we have a checklist we follow for when tenant leaves, but nothing that I would give to the tenant, Leave the apartment on time in the condition it was given to you is suffice to us for instructions, 

Now for us we go through a list of tasks in making sure the apartment is ready to be rented again.

Just out curiosity what would you put on a checklist for a tenant?

Hi Matt

I am a Realtor and property management, grew up in Westlawn near summit and live on the boarder of pilsen and little village now, would be happy to help or answer any questions for you.