Wanted to share a recent deal we did. So much disrespect thrown out towards Chicago and specifically the South Side of the city, I hope the numbers will change a few minds.

In the words of a local developer I highly respect Leon Walker "the difference between Gentrification and Venture Development is INTENT” http://www.dl3realty.com/venturedevelopment

If you are not in the City, you may not know there is a tremendous resurgence happening on the South Side of Chicago.

As a native of Brooklyn, if you would have told me my neighborhood as a child in the 80s (Bushwick, Brooklyn, NY) would have turned into Million Dollar homes a on every block I would have laughed at you. Fast forward to today, tear downs on my block start at $1MM. This is why I choose buy and hold as my preferred investment style!

So, a few years ago, I notice similar trends in Chicago. New constructions, extensive remodels, additions, and larger developments popping up. I made it my goal to get involved and not let Brooklyn happen all over again.

Now I am not saying this will be a Million property or Chicago will see such appreciation!!

However, my point is there are great purchase vs. rent ratios in the area. If you are willing to rehab, the numbers are even better. Also, the closer you are to downtown Chicago, I find the tenant pool to be of a higher standard and less violent crime. Properties of similar quality North of the city will sale for easily 2-3x the price.

The Deal:

Purchased 02/13/19 off the MLS... yes, no deals are there, please don't look now :-)

Rehabbed took 33 days. Holding Cost includes $600 Appraisal fee, Utilities $175, HOA Fee $75, Interest on Credit Cards $415. I did the entire rehab on credit cards 😊

Refi-Loan: 30yr, fixed at 7.85%, commercial note, at 65% ARV (this is a non-warrantable condo, hence the high rate)

Rented in 6 days at $1280, tenant pays all utilities including water. $400 move-in fee. Not section 8 (nothing wrong with section 8 renters, I just don’t do it myself)

My Lender does cash out refi 60 days from purchase date. I self-manage as well. Now its rented and I have no money left in the deal.... Pics and numbers below!!

Purchase/Rehab
Purchase	$23,645
Rehab	$33,000
Holding Cost	$1,340
Investment	$57,985
ARV	$95,000
65% Cashout-Refi	$61,750
After Expenses	$3,765

Rental	Monthly
Rent	$1,280
Taxes	$108
Insurance	$111
HOA Fee	$75
Vacancy	$64
Maintance	$64
Gross	$858
Mortgage	$447
Net	$411

Chicago, Illinois

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BRRRRR.. 100% cash back, 35% equity, $400 net monthly w/ pics

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