South Side Chicago Bad Investment came to Profit 4 years after

[Roman A Elizarov]

Investment Info:

Single-family residence fix & flip investment in Chicago.

Purchase price: $63,850
Cash invested: $214,000
Sale price: $265,000

I invested more than $150,000 in the renovation, and purchased for cash for $63,000 in November 2018. The house passed full gut rehab. Finally, it was sold on May 17, 2023, for $265,000 (check it out: https://www.redfin.com/IL/Chicago/8903-S-Union-Ave-60620/home/13108431). In the short term the investment was not profitable, in the long run, appreciation and market changes gave me some moderate profit.

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

That was my first investment - not really profitable.

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

Foreclosure. Bought as is for cash

How did you finance this deal?

Full cash

How did you add value to the deal?

Full gut rehab with a lot of reno 2/1 -> 4/2. All floors are livable (before only one floor was used). Fully remodelled house, garage, new huge one level deck in the back yard, fenced yard. New roof, new windows, new siding outside, new HVAC system, new pipes and wiring, etc.

What was the outcome?

265,000-6%*265,000-214,000 (all cash invested) = $35,100, but 4 and 1/2 years after

Lessons learned? Challenges?

Choose the right deal first, use OPM, do not put all your time in it, find better neighborhood, never live in the house which is in the rehab stage!