Illegal units in 2-4 unit buildings - Chicago

[Donald Hruska]

Hi all, I'm doing research for my first purchase which I'm hoping to make sometime in the next 12-18 months. I plan to purchase a 2-4 unit property in Chicago and live in one of the units. Very frequently I see in listings "illegal" garden units. What are people's opinions of these? Do you factor in theoretical income from one of these units?

[Jonathan Pliszka]

"If the numbers don't work as a 3 unit I would walk away or renegotiate. You can always bring in an experienced contractor and find out what would it take to make it a legal unit."

This is incorrect. The legality is based on zoning. The process to make something "legal" is quite a bear. For example, you'll need all neighbors within 200 feet of the property to sign off on this. There's really no benefit for them to do so. The process is quite pricey just to establish an application, which will likely be denied anyways.

With that being said, there are thousands of illegal basements/attics in Chicago. I believe it would be rare for you to be called out on this, but to be safe, I'd make the numbers work with just two units. Feel free to PM if you'd like, I have some experience here. Cheers!