CLOSED: Hermosa Triplex in Chicago

[Michael Johnson]

Investment Info:

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

Purchase price: $690,000
Cash invested: $75,000

Contributors:
Jake Fugman

3-unit property in the Hermosa neighborhood of Chicago. This building was newly rehabbed in 2015 and in 2020 the basement was refinished and unit 1 was converted to a duplex down and is a 4/2. The upper two units are 3/1s. This properties cashflow doesn't jump off the page but with the somewhat recent rehab the units are in great condition, I will see lower capex/repair expenses and it will overall be a very low maintenance property.

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

To continue scaling my portfolio with low down-payment, owner occupancy 30-year fixed loan, maximize my ROI and lock in a stable asset that will be relatively low maintenance given its full rehab in 2015.

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

My agent, Jake Fugman, sourced this off-market and was able to get it under contract for me

How did you finance this deal?

30-year fixed, 10% down portfolio loan

How did you add value to the deal?

I was an easy buyer to work with, quick to respond and gave reasonable repair reqeusts

What was the outcome?

Closed on-time, with the maximum amount of closing credits allowed (21K)

Lessons learned? Challenges?

Respond promptly, always keep your agent in the loop with when you are looking and what you are looking for and they will take care of you

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jake Fugman, is professional, prompt and really tailors what type of deals he brings you based off of what you are looking for. He is very in-tune with the market, "running the numbers" and him and his team do a high number of transactions - they know what they are doing.

[Brendan M.]

Congrats @Michael Johnson! What type of loan did you use for this? It looks like you ended up putting about 10% down, right? 

@Jake Fugman if you ever come across anything else off market, I'd be happy to take a look. I'm looking primarily for a legal two with extra units. I'd be looking for FHA and trying to stay away from self sufficiency since it's extremely hard to find something that works, especially with higher interest rate.s