Join us for our New Real Estate & Entertainment Workshops!

Our next event is a FREE FIGHT NIGHT! Learn simple strategies to make more money in real estate and enjoy the Mayweather vs Maidana Fight. Get first hand information from seasoned investors about how to start investing with minimal upfront cash. 

The event will be held at a newly rehabbed investment property. Refreshments and beverages will be available.

Seats are limited so RSVP today: info@mirodevelopment.com or 312.265.8385!

Fight Night Flyer


FHA Waives Waiting Periods for Negative Credit Reportings

New FHA programs make it easier for buyers who were affected by the financial crisis to rebuild. Waiting periods for home buyers with foreclosures and bankruptcies on their credit can now be waived.

Ex-Homeowners, who lost their homes to a short-sale, deed-in-lieu, foreclosure, and/or had to claim bankruptcy because of an extenuating circumstance, or circumstances, are now eligible to purchase a new home in as little as 12 months after a one or both of these events, and FHA has confirmed that they will waive their waiting requirements of 3 years for a foreclosure related (short-sale and deed-in-lieu) event, and 2 years for someone who discharged their debts via a bankruptcy.

 

robin@mirodevelopment.com

How to Duplex a 2-Flat

One of the numerous projects Miro Development has recently completed is the duplex of a 2-flat for a buyer who will benefit from the monthly income of their additional unit. To maximize the space for the building owner’s residence, Miro has duplexed the first floor to the basement, which was finished. The original basement staircase at the front entrance of the building was removed, and that area will be transformed into a closet. A brand new staircase has been designed on the first floor of the owners unit to provide convenience and privacy. Below you will find a series of photos that demonstrate the project at different phases, which includes images that demonstrate the duplex process. MiroDevelopment.com

2FlatDuplexComplete.jpg

robin@mirodevelopment.com

2-Flat vs. Single-Family

Why 2 Flats Make More Sense & How to Get Started

2flatsNeighborhood.jpg

I came across an article on Chicago Magazine’s website that discussed why 2-flats are a great option for investors in comparison to single-family homes. To add to the points made, not only is buying a 2-flat a more viable investment option, but if you are interested in purchasing a personal residence you should consider a 2-flat as well. Renting out the additional unit can reduce your mortgage cost by half, if not more. Below you will find a couple of good points made in the article from an investor’s and home owner’s perspective. And, I’ve provided information on how to go about pin pointing your lucrative 2-flat investment.

With two or more rentable units, you gain flexibility in a couple of valuable ways: (1) You divide up the risk somewhat. If one unit is vacant for a stretch of several months, you’re still collecting rent on the other, so you have to pony up less to cover the mortgage. (2) At some point, you might opt to live in one of the units, with rent on the other defraying some of your mortgage cost.
— Chicagomag.com

Getting Started:

Look for Investments Adjacent to Well Developed Neighborhoods

For example, Miro Development recently purchased a 2-Flat adjacent to the Beverly area. Beverly maintains higher median income and more property values in comparison the other Chicago areas. By purchasing properties on the border of well developed areas you benefit from better schools, entertainment and shopping while still keeping more affordable home prices. Additionally, there is a high probability that the development trend in the adjacent neighborhood will transition to your area, which will further increase the value of your home.

Use Other Resources in Addition to the MLS

The best way to get first-hand knowledge on a neighborhood is to actually drive down the block and see for yourself. If you happen to catch someone walking down the street ask them for their thoughts on the area. And, while your driving around take note of any properties that look vacant and relay the address to your broker to see if they can provide additional information.

Get Several Bids from Licensed Contractors Before You Make an Offer

If you’re looking for a low priced property, it will most likely need work. Before you get into “I can fix this myself” mode --- if your not a licensed contractor that has experience rehabbing dilapidated real estate consider getting bids from a few. They will be able to determine modifications that need to be made to ensure that the property meets building code requirements, and provide insight on challenges that may arise, which may not be apparent to the average buyer. You need to know exactly what you’re getting into BEFORE you even consider purchasing a property, so it doesn’t end up back on the market and you don’t throw money down the drain.

If you find yourself getting bogged down after getting started inquiry about options at Miro Development, which give investors and home owners the opportunity to buy newly rehabbed 2 -flats and benefit from property management assistance.

 

robin@mirodevelopment.com

Understanding Mortgage Costs

I "PITI" the fool!

PITI is an acronym that stands for Principal, Interest, Taxes, and Insurance.

In todays mortgage market interest rates can be as low as 3% but that quoted interest rate and mortgage rate does not necessarily include Property Taxes and Home Insurance. To get a ballpark figure of the taxes in Cook County Illinois simply multiply the Appraised value (purchase price may be different) by 1.5%-2%. For example, our typical 2 flat homes taxes are about $2900 per year. In this scenario, $180,000 is the typical appraised value for our 2 flat homes and 1.6% of the appraised value represents an annual property tax of $2,898.

That is calculated as:
$180,000 x .01611= $2,898.

By taking the $2,898 and dividing it by 12 months you will arrive at your per month obligation, which is $241.5. Furthermore, quality home insurance will be around $150 per month. Of course your insurance person will provide you with more competitive rates if you have alarm systems, new mechanicals (which you do), automobiles on the policy, and more.

In conclusion, by following these simple calculations you can arrive at an approximate mortgage payment including taxes and insurance. Next article we will learn how to arrive at an estimated cost for energy and how Miro Development, LLC helps you save on energy by using energy efficient building methods, materials, and appliances.

michael@mirodevelopment.com