Joe DannoLifelong Naperville resident and seasoned Real Estate Investor Archives
December 2017
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Naperville Investment Property of the Month11/19/2017
Naperville does not have an abundance of 2 or 3 flats so whenever one pops up for sale I am always interested in running the numbers to see if its an opportunity that might make sense to pursue. The most recent one to come onto the market is 21 W Franklin Ave. A 2 flat with two units each consisting of 2 br and 1 bath. If you would like to see additional images or more information on the actual property please click on the link above. Key assumptions I am using to come up with my analysis below are the following:
With all key assumptions inputted the property would be $573 Net Cash Flow positive year 1 after expenses and would have a 4.5% Cap Rate.
These are not jaw-dropping returns but I will definitely be walking thru the property to determine if rents could be increased with updating since the location is very intriguing being so close to the 5th Avenue Metra Station and proximity to downtown Naperville. As always whenever looking at possible investments please make sure to run your own numbers with your own set of assumptions with your investing goals in mind. My analysis above is for discussion only and should not be used as real world numbers if someone were to purchase the property.
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Water out at the house11/12/2017 The saga of lost power continued over the weekend at one of our properties. Our tenants informed us that power was out again at the house and this time it included the laundry room, where the furnace is located. Not a good thing when the first Chicago sub freezing evenings had arrived!
Another call to ComEd and a couple hours later power and heat were back up and running. Just two problems.
A couple of calls to my go to plumbing contractors and I quickly learned that they do not like to work on well tanks or pressure switches. So a quick search on google and I found J&J Well and Pumps. To my surprise they said they would be out to the house within 2 hours. They were unable to diagnosis the problem stating that there was no power coming down to the crawl space for the well tank and pressure switch so they would try to replace the breaker in the morning and the pressure switch. Morning came and they replaced the breaker to the well in the main panel, the pressure switch and the tank which they said they were amazed had lasted this long since it appeared to be 15 years old but to no avail. We still had no water and no power to the well. He said he was 99% sure it was something to do with ComEd because he was not getting 240V to the well breaker in the panel which was required to run. So one more call to ComEd, one more lengthy explanation of what was going on and ComEd sent someone back out to the house. Low and behold from speaking with the ComEd tech, they had originally not set up the new meter to support 240V and within 30 minutes the well and pressure switch had power and my tenants had water flowing again. Moral of this story is two-fold. If ComEd is ever coming out to your house to check the meter make sure to inform them if you have any 240V breakers to support appliances. If you ever need work down on your well or well tank in the Western Suburbs I would highly recommend giving J&J Well and Pumps a call. They went above and beyond what I would have ever expected. Even asking me to give them a call once ComEd had come back out to let them know that water had been restored for my tenants.
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Power out to half the house11/4/2017 I received a call from a tenant this morning about the power being out to only half the house. All the bedrooms and the lone bathroom had no power to them. The kitchen, living / family room and laundry room all still had live power.
I had never heard of or experienced power being out to only certain portions of a home so I called my Electrical Contractor who told me with a high degree of certainty that when power is out to only certain parts of a home it means you have lost one leg of power coming into the home so I should first call ComEd, our local electrical provider. I called ComEd who came out, replaced the outside power meter and within a couple of hours the home had fully restored power. You learn something new everyday and this was definitely a first in my property management career. A quick google search also offered up these other possibilities if it was not the outside power meter.
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