This was my clients deal and I brokered both the buy/sell side. I saw it sitting on MLS and drove over to check it out liked it and emailed the deal out. Client was from out of state and my teammate did a video tour walk through for him. Listed $249k we got it for $229k. The rehab costed roughly $80k and it ended up selling at $392k. 2 units + a garden unit. Redid all the drywall, added in unit laundry, updated kitchens/baths, some new windows as needed, redid cement in areas was broken and overall modernized property.

Location: Humboldt Park which is area I highly recommend for investors, take advantage of the gentrification. The trick to how this worked for such a nice profit margin was that the property was located just north of Grand Ave. only a few hundred feet over. Grand Ave. acts as a very solid boundary with properties on one side selling for 50 to 100% higher then the other side. South of Grand Ave. there is still open air drug dealing and it is not gentrified, while north trendy millennials are moving in.

Financing: Client used hard money. I recommended more traditional financing as feel hard money is very risky especially when investing out of state but it worked out. Almost none of my more experienced repeat clients use hard money for north side price point properties as the fees eat into your deal. HELOCS or small bank commercial rehab loans are typically the go to, with my preference being HELOCS when possible.

Contractors: Client used my contractor referrals.

Couldn't find any before photos but the property had been sitting abandoned at least a year and was a mess. Debris left over from bad tenants, etc.

After photos.....

Nice job they did with the old extra garden unit.

This all white modern look is my favorite right now. It gets high sales price and also high rents. Building ended up renting at $1750 for the 2br 1ba #2 and we had an app for $1250 the garden but I think buyer ended up living in that unit as a house hack. Rents have grown significantly in the area, actually ended up renting higher then my initial projection.

Chicago, Illinois

5 Votes