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

Buy-and-hold house hack in Chicago's Lakeview.

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.).

[Jonathan Klemm]

@William Wright - Congrats on what sounds like a great deal!!

I love the Chicago Lakeview neighborhood.  Also, love how you put in a "Black Friday" offer!

Who did you use for a lender that offered those creative terms?  

Look forward to hearing how the cosmetic rehabs go, reach out if we can be of any assistance.