Congrats to @Kristopher Toribio and thanks for letting me make a deal diary. I sold Kris his first property a few years ago in Albany Park which was a 2 unit he did a similar style rehab on and then got re-appraised higher to get a HELOC. He then used that HELOC to finance the rehab of this current 4 unit property. BRRR (Buy, Rehab, Refinance, Repeat). We have a HELOC lender that does 95% LTV which makes it easy to pull equity.

How found this deal: Off the MLS. I check market every morning and night for deals with rent upside. We ended up going over ask a little bit at $600,000. There was a price drop after it sat for months and then suddenly multiple offers haha happens a lot in Chicago on the multi units. You have to be aggresive on these and I find only my experienced clients have it in them to lock it down aggresively when it's been sitting unsold but this is a strategy I tell everyone to follow as it works and gets you deals in a hot market.

Financing: We bought using a local credit union 10% down loan which Kris funded from personal savings. We saved the HELOC to finance the rehab portion.

Condition: The building was in poor cosmetic shape and also had little bit of water in the basement, there also was some tuckpointing needed that looked bad from outside. Overall the repairs were relatively minor and the bones of the building were pretty solid. We liked that the layout was fine so it did not need a gut rehab (no moving walls, etc.) Units were on furnaces which needed maintainance but not a conversion from boilers to furnaces or anything too costly.

Rehab: Skimcoat/paint/new drywall in some areas. Gut rehab kitchens and just clean up bathrooms. Modernize the whole rental so we can rent it for top rents. I did this same style rehab on my brick 4 unit and brought rents from $575 to $1325. It's crazy how many old owners do not update/bring their units anywhere near market rents.

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Deal Diary: 4 unit BRRR in Irving Park - House Hack

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