Chicago garden units as vacation rentals

[Chad S.]

I am looking to purchase my first property, a 3-flat multifamily in Chicago, and live in one of the units. I ran it through the calculator and I will have to pay about $550/mo extra to cover the mortgage and all expenses, not living there would cashflow $700. It's an amazing building and every single thing has been updated. 

Fast forward to the basement. It is semi-finished, has concrete floors, heating, a separate room to add laundry and a separate room to add a bathroom. Because the hot water tanks and furnace/ac are in the 3 units themselves, the basement is huge and empty.

I see a lot of garden units used as airbnb properties, and sectioning off some space and turning it into a little furnished apartment wouldn't be too difficult. Technically in Chicago I've heard you can't rent out garden units, but they are available to rent long and short term and it's no secret.

Has anybody ever used a garden unit as a vacation rental before? With me living there on the first floor, I think it would be a great way to turn the -$550/mo into a positive cashflow situation.

[Marvin Anaya]

Hey Chad,

If a vacationer is injured (God forbid) you can potentially be in a heap of legal trouble if the basement isn't up to code/living standards. Just my two-cents.

Marvin