Condo hacking experiences

[Kyle Williams]

Hi, I have been deeply involved in researching and learning about house hacking. I came to the conclusion that purchasing a 2bd/1ba condo is my best option. I will use the rent by room strategy for a year, then move out and lease the condo under 1 lease.

Does anyone have any advice about condo hacking, or can anyone describe their personal experience?

Also does anyone have any references for realtors in Chicago who are experienced in condos and rental properties?

Thank you!!!

[John Steffen]

Hey Kyle, the agent finder on BP is going to lead you to the best investor friendly agents in your target market. 

Speak to the Hoa and review the HoA docs before going under contract. Many hoa's have restrictions / limits to non-owner occupants allowed in a community / building. Just make sure they allow units to be held as rentals, if so, then what are the terms and conditions if any.

Good luck!

[Rick Albert]

My first house was a condo. Here are a few suggestions:

1. If you can find one with 2 bathrooms that is ideal. That way if one toilet is broken, you don't have to pay the premium to have a plumber come right away when there is a second one to use.

2. Find fixer condos. I've noticed that the discounts tend to be pretty decent when compared to the actual cost of renovation (not flipping status, just better in general).

3. Depending on how much you are putting down, generally living there for just one year won't be enough. Make sure to run the numbers ahead of time.

4. In an ideal world, look for 3 bedroom condos. I have seen these appreciate very well given that they are the alternative for those who cannot afford a 3 bedroom home. So as they get priced out, they have to go somewhere. That's where your unit comes in.

5. Think about the condo lifestyle and what that entails. Any sort of walkability is a huge plus since you can't add much more value other than a typical remodel.

Good luck!

[Jonathan Klemm]

Hey there @Kyle Williams - Welcome to the BP Chicago Investor community!

I have not personally condo house hacked, but I did house hack my first single family home and had a friend stay with me.  Sounds to me like you are already on the right path.  If there is any way to save to househack a 2-4 unit building, I would also consider that.  Condos are sometimes not the best long term wealth generators depending on the location.

I am assuming you went with a condo because it is what you could afford in the neighborhood where you want to live. I love it! Just beware of high HOA fees and bylaws on renting on the apartment.

If you are looking for an investor-focused agent who knows condos try @Eudith Vacio or @Henry Lazerow

[Henry Lazerow]

@Jonathan Klemm thanks for the referral. Kyle sounds like a nice plan, house hacking is great and how I got started by doing one in Rogers Park. For a condo you need be careful as many do not allow you to rent out just a part of a unit for example a bedroom and require full unit rented with 12+ month leases. The low rise type buildings without elevators tend to have the more relax rules and also the lower assesments, so they can be a good option. Feel free to PM if want to chat more. 

[Jake Andronico]

@Kyle Williams

Love the idea! Most are not willing to have roommates. I've house hacked twice in Reno, NV and it's changed my life. I had roommates for about 3 years. 

Here's what I learned, my gripes, and what I regretted: 

https://www.biggerpockets.com/forums/922/topics/1133476-hous...

[Victor So]

Quote from @Kyle Williams:

Hi, I have been deeply involved in researching and learning about house hacking. I came to the conclusion that purchasing a 2bd/1ba condo is my best option. I will use the rent by room strategy for a year, then move out and lease the condo under 1 lease.

Does anyone have any advice about condo hacking, or can anyone describe their personal experience?

Also does anyone have any references for realtors in Chicago who are experienced in condos and rental properties?

Thank you!!!

My very first househack was a condo. And it was a nightmare mainly because of HOA politics, rules/regulations, etc especially if you want to make certain renovations to the unit. Also, I know those who've gotten hit with special assessments that wiped away cash flow and some.