Successful first house hack in Chicago!

[Ebe Chinweze]

Investment Info:

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

Purchase price: $375,000
Cash invested: $25,000
Sale price: $475,000

We house hacked a three unit in Chicago where we finished the project by adding the appliances and by beautifying the landscaping in the front and back of the property. We self-managed the property. We sold the the property after moving out of the area to Denver.

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

Each unit was large enough for us to house hack (3/2) as my husband and I were expecting our first child.

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

We found it on the MLS. We negotiated with the seller to come down on price d/t us having to finish the project by adding appliances. We were more attractive buyers because we were able to put down 20%.

How did you finance this deal?

Conventional owner occupied loan.

How did you add value to the deal?

Adding the appliances, and updating the landscaping.

What was the outcome?

We sold it for $100K more than what we paid for it. The buyer's appraisal came in under his initial offer to us, which was a bummer for us. We however were able to meet in the middle for the difference.

Lessons learned? Challenges?

It's great to house hack but we should have treated it more like a business. It is a challenge to live with others but so worth it!