My First Deal(I think)

[Duane J Green]

Just wanted to write a quick post thanking this community and platform for helping me buy my first house hack. I have been learning from Bigger Pockets and other real estate resources for a long time. I finally closed on a 2-unit building in Chicago, IL on July 1st. My family and I have moved into to the first floor unit(3 bed, 1 bath) and the 2nd floor(3 bed 1 bath) tenants renewed their lease for another year. The Chicago market is ridiculous, so unfortunately I payed $2500 over the appraised price. Hard to buy right with traditional financing. Although using the FHA program my overall price to purchase was under $23K, so I'm happy there. My plan is to convert the semi-finished basement into another unit(studio or 1 bedroom) or duplex down before moving out in about a year. Whatever will add the most value. I haven't realized all the expenses yet but after renting out my unit the property will cash flow around $400/month. My goal is to try and some equity >10% after refinancing with a DSCR of at least 1.25. This is if everything goes according to plan... Ha! Thanks again BP!

[Jonathan Klemm]

@Duane J Green - Awesome work!  What area/neighborhood is the property in?

Finding a 2 unit with FHA is much easier than a 3 or 4 unit so I love your approach. I wouldn't feel bad at all about paying a bit extra for something that works for you and your family. You are spot on with Chicago real estate being on fire....the key to your purchase is $23k cash out of pocket, that's just awesome!

On to the next one...