Chicago Area Multi-Family 203K turned STR

[Steve Clery]

Investment Info:

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

Purchase price: $222,000
Cash invested: $13,000

I Purchased and rehabbed this property in 2013 using a FHA 203K Construction loan. The property currently consists or 3 furnished short-term rental units. The building generates an annual gross income of $120,000.

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

House hacking and building wealth through Real Estate.

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

I found it on the MLS after the market took a hit. It was owned by the bank. I paid the banks asking price to secure the property as it was undervalued.

How did you finance this deal?

FHA 203K

How did you add value to the deal?

Rehabbed the property.

What was the outcome?

I lived in one unit while renting the other unit out. This paid for 85% of my mortgage. I have since turned the property into 3 STR units which now bring in an annual gross income of $120,000!

Lessons learned? Challenges?

Keep your contractor in check and get an itemized quote prior to hiring.