Iggy, the local Real Estate Investors Association is:
Chicago Area REIA
PO Box 2597
Glen Ellyn , IL 60138
contact: Laura Baker, President
guest policy: $15
Go to a meeting and let the people know what you are interested in, they
can point you at people who can teach you how to do it right and people
who have real estate to sell.
Yeah, that's what I was thinking, too. If it doesn't start out that
way, anybody who has been buying stuff at auction will just expand into
that kind of space. Maybe be DRAGGED kicking and screaming into it by
all the "neat stuff".
It's a disease we are all familiar with.
4K sq ft is not enough space to let it out, except to one tenant,
probably. But, maybe that is what you had in mind. In some areas, much
larger properties are available for a song, and if you can buy it for a
song, then the taxes will be based on that sale price, at least for the
first couple years. There are a lot of properties, like the clerestory
factory building I mentioned in an earlier message, that VERY few
established businesses want. But, to possibly split up and have a
couple startups use, it could be just perfect.
Good point, Jon. The space I rent for my electronic assembly business
is set up for 3,000 ft increments. We rent 6,000 ft. All the spaces
can have walls knocked out to expand to another 3,000 ft. or rebuilt
to reset the footage. The building is metal with concrete floor. The
land lord usually has the units all set up for 3.000 ft.
Ig, Each unit you rent must be set up for a rest room that is ADA
compliant. Must have some off-street parking, Obviously must have
water/sewer, etc. If each unit had an office space, that is a plus.
Should have individual phone lines already installed which can be used
as part of a security system for each space.
Expect to have conflicts between renters if you have more than one.
Even the best renters can irritate the other. Yes, your insurance will
be a lot of money, but will go down for a rented unit as the renter
will have to have insurance to make you whole in case of a claim.
If you are going to mange the unit yourself, you will spend a lot of
seemingly wasted time showing the unit to potential renters. We have
looked at lots of other buildings and each visit takes about an hour,
plus driving time. Even more time if the potential renter sees
something of interest. The worst impression you can make is to say you
don't know something about your very own building.
A big factor here will be how much managing you want to do. One tenant,
you can write the lease so they pay pretty much all expenses, and most
of the maintenance and repairs. Look up triple net lease... More
tenants, you will need to spend more time and energy running the place.
Flip side, if one tenant quits, you pay everything until you find a new
one, or you hardly notice it because it is only 10% of your income.
My experience from common rentals have not been good. We do have three
vacation rentals, but in that case, one week's occupancy pays for more than
a month's mortgage, so it is good. You just have to balance the numbers and
see if it is right for you. I'd advise consulting a professional who can
tell you the advantages and disadvantages, and plug in YOUR numbers. It's
not right for everyone, but it's not wrong for everyone, either. If you can
make more than your payment, and have the payments cover the mortgage and
upkeep, it is a positive situation. It can go anywhere on the map from
You can't hide the real reason from the long-time readers of this
group. The real reason is you have run out of room in your garage and
you need a place to store your new stuff.
Thank you for putting it so delicately, Paul.
Stuart, this is very much on the mark. Thanks. Tomorrow me and my
whole family are going on an Amtrak trip to California, once we come
back I will start researching deeply.
Re: needing space for stuff. I actually manage with the garage and
backyard. For personal messing around, I would much rather have space
next to my house rather than a warehouse somewhere. The warehouse is
really meant to be a way to get monthly rent checks. Maybe later in
life I will use one for my own purposes, but not now.
I knew a guy who bought a piece of property he thought was a steal. Come to
find out, it was previously a gas station. It cost him a lot to remediate
the property, and with all the remediation, he broke even. After about five
years. Research the property in question. If you buy a EPA cleanup site,
the government won't want to hear any whiny stories on how you didn't know.
There used to be a whole BUNCH of interesting
places in the south bay area. I think Halted
Specialties is still around at 3500 Ryder St. in
Mike Quinn is at 401 Mccormick St in San Leandro.
They used to be on the Oakland Airport, then
moved a couple blocks away.
Triangle Machine has apparently closed. It was a
totally awesome place, with tables of ballscrews,
servo motors, etc. just filling the place!
Those are the only ones I knew of in recent
history. Some years ago I used to make almost
yearly trips to Berkeley, and would rent a car and
take a whole day to tour all the cool places. If
you are interested in old computers, the Computer
History Museum is a total blast. They have all
the computers I learned on, including some quite
unusual machines from the 60's.