First Chicago Househack

[William Wright]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $650,000
Cash invested: $65,000

How did you find this deal and how did you negotiate it?

Property had been sitting on the MLS for many months and put in a low 'Black Friday' offer. Negotiated price down based on future renovations in two units (updating cabinets, floors, countertops, and condensers).

How did you finance this deal?

Used an agent-recommended local lender to put 10% down + 1 point for 7/6 ARM (with no PMI and option for no-cost refinance at 20% equity) for a house hack. Initially was going to put 20% down, but took the risk of an ARM to leave other cash invested and repeat after another year.

How did you add value to the deal?

Future plans to cosmetically renovate 2 of 3 units, enhance curb appeal, and add modern touches (keyless entry, smart thermostats, etc.).