1st Property- Family Venture - Andersonville

[Angie Taggart]

Investment Info:

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

Purchase price: $525,000
Cash invested: $300,000
Sale price: $945,000

This was a family venture where each family lived in their own unit on the property. Title was held in just one name.(yikes)
Purchase price: $525,000
Cash invested: $300,000 construction loan for front house

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

We found an ideal property to rehab as a family. It was a 2 unit front house with a coach house in the back. We converted the coach house into a 2 unit. Everyone lived on the property in their own units (think compound) for 5 years. We eventually rented out our unit and moved to another house. It was a house hack before I knew what "house hack" meant.

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

It was found on the MLS during the bubble in 2008. (yikes)

How did you finance this deal?

One person got financing and went on title. We all put in sweat equity and paid personal funds for rehab of each "owned" unit.

How did you add value to the deal?

Gut rehab all units.

What was the outcome?

We sold the property in 2017.

Lessons learned? Challenges?

Lessons learned:
1.) Get everything is writing ahead of time. When it came time to sell, ownership percentages were not solid.
2.) Be in the know of what is happening with the loan even if your name is not attached.
3.) Going into business with family can be challenging.