new and interested in 2-3 flats, northside chicago

[Chris Wilburn]

Hi Everyone,

My name is Chris. Relatively new to the Chicago area (summer 2016) after moving around a bit. I’m a technical designer in consumer goods.

New to Bigger Pockets and real estate as a whole. Long story short, tired of paying rent!  Setting myself up for a future passive income sounds like a great alternative.

Been looking at getting into the game with a 2 or 3 flat. I’m approaching with the intent to owner occupy.  I did a bit of research and found the Northside scenario sheet posted by Brie Schmidt (thank you!) and ran some (recent pre-approval) numbers based on a 475K property (which I’m not seeing a lot of in the past couple weeks). I’ve uploaded some screenshots of my edits.

The last scenario I ran involves a 4.75% down with no PMI. Some properties on the NW side that I was interested in qualified for this.

I understand that 2-flats and maye 3-flats don’t cash flow often, and I think that’s OK for me right now. I’m happy with supplementing monthly expense down to triple digits, or realllly low 4-digits.

Things I’m not quite clear on:

• What should I know about changes in taxes with location and number of units?
• For other similar no-PMI programs, what are some specifics?
• Any glaring holes in my thinking? Haha

Thanks guys and I'm excited to be a part of the community! 

[Harjeet Bhatti]

@Chris Wilburn You wil have MI under FHA loan in 30 year fix loan through out the life of the loan unless you refinance with conventional loan. If you do not own any property you can get a quote on Home Possible from your lender. 5% down payment is allowed under this product.