Recent College Grad Looking to House Hack in Chicago
Hello All,
Been part of the BiggerPockets community for about a month now and have been looking at properties in Chicago neighborhoods to house hack. I have found a couple that could be viable options, but wanted to post on this forum before I made any inquiries. Just curious if anyone had advice on housing hacking, investing in the Chicago area, or just general advice. Would also be interested in chatting with an experienced investor or agent in the area. I know this is a broad ask, but any help is appreciated as I start my real estate journey. Looking forward to connecting more directly with this community!
Thanks,
Braeden
Most Popular Reply
Welcome to the forums!
General house hacking advice:
1) Make sure it cash flows post move out. I like to target $100/door at least.
2) Consider using additional dwelling units (ADUs) for additional income/cashflow.
3) If using FHA, be aware of the self sufficiency test (SST) for legal 3-4 flats. A lot of properties don't pass so it disqualifies them. Finding a legal 2-flat with an ADU will allow you to get 3 units without the SST being applied.
4) Ask the seller if the property is metered or unmetered for water. That can change your underwriting expectations.
5) Get multiple financing pre approvals so if a property doesn't work for FHA due to the SST, high PMI, condition, etc you can pivot and use a different kind of financing such as 5% down conventional (no PMI, fewer required appraisal repair potential)
6) Always make sure to pull the property tax bill when looking at the taxes. The exemptions are not always entered correctly on the listing or they are omitted.
7) Look for some value add potential, but be realistic about what you're comfortable with.
8) Don't get discouraged when you look at a lot of properties. The reality is that it's hard to find good investment opportunities.