New REI investor looking to get started and househack in Chicago

[Johnny Alvarez]

Hello BP community!

I have been lurking in the forums but wanted to finally make an introductory post. I moved to Chicago this past January, a city that I absolutely love, where I would like establish myself and land my first investment. I'm working full time as an engineer in a manufacturing plant, and I am determined to pursue a multifamily house-hack. First of all, I wanted to connect with you and start conversations on these topics so feel free to reach out! Secondly I had some specific questions for my Chicago people to start off:

• From your perspective what are some of the best neighborhoods to house-hack currently? Any specific area that is currently appreciating at higher rate? I've been looking into Avondale and Tri-Taylor area. I like Ukrainian village but looks like in general is too expensive and lower probability to cashflow

• What are some of the intricacies from the Chicago market that makes it unique from other major metropolitan areas?

• Is FHA the way to go for househacking or should you pursue a conventional loan if can afford it?

Looking forward for discussions and learning from your experiences

Johnny Alvarez

[Jonathan Klemm]

@Johnny Alvarez - Welcome to Chicago! And maybe more importantly congrats on jumping into RE investing.

1.  Where you want to house hack really depends on you and your comfort level.  Chicago's NW side has and will likely always continue to appreciate at a steady rate, but I like areas on the South side like Bronzeville and Washington Park.  I also like Tri-taylor and Pilsen as well.

2.  Chicago has a lot to offer because there are so many 2-4 units and you can find real estate at all different price points.  Understanding Chicago as a whole is almost impossible but there are tons of great people (some above) that know the neighbors like the back of their hand.  Find the general area you want to look in and then find someone who knows that area.

3. I'd say FHA is definitely the way to go if you can find a deal that fits the criteria. 3.5% down @ 2.75% interest rate for 30 years.....are you kidding me? That's a killer deal with low money in.

My biggest suggestion would be to build a team and move fast.  The faster you get going the faster you get some real experience which is invaluable.  If you need any help or referrals shoot me a pm and I am happy to assist.