Just closed on a large 3 unit in Avondale for a client. The building was listed as a 2 unit and the broker said its forsure only a legal 2 no contingencies for 3. I had a strong feeling it's a 3 unit as I have brokered the same looking building nearby and know these buildings just have a grandfathered in non conforming but legal 3rd. My client put it under contract at $412k, took some risk and we just closed with it ending up as a 3 unit on the zoning doc! The market value is atleast $460k range for a 3 so a good $48k of equity on the buy, once rehabbed 3s can get $800s now in Avondale. The back up plan was to duplex up as a 2 or have an illegal unit which would of still also cashflowed. Rehabbed 2s still get low 600s.

There's deals out there. I have 3 others contingent now for clients and one contingent for myself. A big thing is you need run CURRENT rents right now. In some areas like Brighton Park, Little Village, etc. rents are getting 30% higher then year ago averages. On north side 20% higher then a year or so ago is doable with right finishes. I made this mistake myself a bit using the rent averages I knew from a year or so ago and it made me miss some deals.

AIRBNB is also a solid option if in right areas. I am co-hosting a clients airbnb in Avondale and pushing crazy numbers off a 2/1 unit. See below...

March - $2754 gross - $620 spent on cleanings = Net $2134 and this is still the low season

April - We did a monthly stay at $3110 gross - $120 cleaning = $2990 net still somewhat low season

May - Already have 13 days booked at $149 a night

June - Already have 6 days booked at $179 a night. Likely looking at around a $4000 net month.

For anyone interested in AIRBNB feel free to shoot me a PM happy to discuss how works and share some photos of the finishes we use to max out the rents. Basically anyone can get approved for 1 Airbnb in City of Chicago but its very difficult to get approved for more then 1 unit. I manage 12-15% gross so still cashflows higher after fees and if have time can do yourself too. Airbnb in the right areas is well worth the bit more work!

Chicago, Illinois

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