New investor looking to house hack in Chicago proper

[John Mathews]

Hello, I am a 23 year old who works in the Loop but still commutes from parents house in the suburbs.  While all my friends are moving into the city to rent in places like Lakeview, Lincoln Park, Olde Town and Gold Coast I am trying to find a duplex or small multi-family to househack. I am wondering about how to go about finding a property that would make a good deal for this. I have looked on websites like realtor.com and zillow and everything looks to be out of price range (600k and up for a worn down duplex) and I only have 20k saved. Is this enough? Also any tips on what first steps I can take in either the search process or beginning stages or what areas in the city would be best to look are greatly appreciated!

[G. Brian Davis]

Hi @John Mathews, welcome to BiggerPockets!

Higher-end neighborhoods in Chicago may prove difficult places to house hack. Doesn't mean it can't be done, but finding a property where the numbers make sense may be a challenge. 

You'll almost certainly need to put down at least 3.5%, plus you'll need closing costs and cash reserves to pay the first few months of the mortgage, plus money for any repairs/updates. 

While I would never discourage someone from house hacking, you might find it easier for your first deal if you buy a single-family and rent out rooms to cover your mortgage.

Please don't hesitate to reach out over PM, happy to help in any way I can.

Best,