Dated, midcentury rental updated to condo-quality finishes

[Jay Ritchie]

Investment Info:

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

Purchase price: $570,000
Cash invested: $211,000

Full rehab of midcentury 3-flat in Chicago's Lincoln Square neighborhood. First major renovation since property was built in 1950s. Updated plumbing and electrical. New windows, kitchens and bathrooms. Expansion of garden unit. Refresh of common areas.

Used several new products on rehab: Wetwall shower panels to eliminate grout line deterioration. Thinscape kithcen countertops as lighter-weight premium countertop material.

What made you interested in investing in this type of deal?

Originally purchased as single family home conversion but pivoted to rentals during the building material spike of 2021.

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

MLS deal negotiated with traditional broker.

How did you finance this deal?

Conventional financing plus HELOC for rehab.

How did you add value to the deal?

Full renovation helps to compete and differentiate from many owner-occupied multi-units with deferred maintenance found in the area.

Lessons learned? Challenges?

Deciding to self-GC probably didn't save money and probably delayed the project overall.