First Multifamily House Hack - Chicago, Analyze my Deal!

[Jimmy M.]

Hi Bigger Pockets Community!  I'm a long time listener and the podcast, site, and books has been my inspiration for real estate investing, building passive income, and working towards FI.  I wanted to drop in and share the details of our first house hack (Closes in April, so fingers crossed nothing crazy happens, inspection and attorney review are completed).  

City, Neighborhood:  Chicago, Roscoe Village

Property Type:  Two Flat;  Unit 1:  2 bed, 1 bath.   Unit 2:  2 Bed, 2 Bath, Duplex with den (will be our unit)

Purchase Price:  $525,000

Monthly PITI: $2967 (estimated)

Monthly Rent from Unit 1:  $1,450.  Market Rent $1,800 to $2,000.  Inheriting tenant until 10/31.  Will most likely renew for 6 months until spring and then discuss market rates for rent.  

Monthly Rent from Unit 2:  $0, will be owner occupied.  Estimated Rent for the Duplex when we move out:  $2,500-$2,800

Why we loved this deal:  Our monthly cost to live in a unit that is bigger and in a neighborhood we LOVE will be about $1600-1700 after utilities, etc.  This is going to be $1,000 less than we are currently paying for our 2bed/2bath condo and we will have more space.  The neighborhood (Roscoe Village) has shown to be very strong and we should have no problem renting this unit out once we are ready for our next live in house hack in 2 or so years.  

What we need to do right away:  

- We are listing our 2 bed/2bath Condo in Lincoln Park tonight. We originally wanted to rent this out but we put more cash into this deal to get it going right away. The multifamily was a competitive situation so the dream of FHA low money was not going to work.

- Flooring and subflooring, possibly trusses in our unit.  We are going to take the carpet out of the dining room right away when we take possession.  Any recommendations on contractors is appreciated.  We are going to do this right away before we move in.  

Thanks BiggerPockets!