All Forum Posts by: Andrew Burrell

Hi Andrew,

I own several single-family homes in Fayetteville. You are not required to pay upfront costs (and shouldn't, in my opinion.)

I require written verification from utility companies (water, gas, electric) that utilities have been assigned to Tenant effective the first day of occupancy; no confirmation = no keys and lease approval withdrawn). Tenants are responsible for all costs related to utilities.  [This and other information is included with the notification their application has been approved. It's also included in the Rental Qualification Criteria given to applicants.]

I provide approved tenants with the utility company information (name, phone #, website, etc.), as well as a link to https://www.fayetteville-ar.gov/4052/My-Fayetteville-Service... Since access to Internet service varies by location within/around Fayetteville, I encourage them to check with their preferred provider. Also, some utilities may require a deposit, so it's best that the tenants contact those utilities ASAP.  

I hope this is helpful to you! ~Susan

@Andrew Burrell I would connect with @Paul De Luca he knows his house hacking stuff in the Chicago market!

 Welcome to the forum and eventually welcome to Chicago.  The wonderful thing about Chicago is the diversity of neighborhoods and investment opportunities, from small to big.  You also don't have to limit the opportunities to the city property.  There's also the burbs.  And if you decide to become an out of state investor while living in Chicago the airports will get you just about anyplace in the US with a direct flight.

You are right regarding carefully watching the property taxes outside of city limits, but there are still opportunities.  

Regarding your comment about making sure the property is located in a "good neighborhood"- When it comes to investing in a property that you are personally going to live in pick a neighborhood that works for you.  But in my opinion as an investor, you have to be careful about the term "good neighborhood".   Chicago, like New York and Boston, is always changing and there are some neighborhoods that a few years ago people would say they are "bad neighborhoods".  Now those neighborhoods are hot, trendy, and gentrified....  That happens because of investors.  So research all of the neighborhoods. There may be one that is transitioning from bad to good & that may be a good fit for you. 

@Andrew Burrell welcome to the forums! You are going to meet tons of great folks here as the Chicago community is really robust. I have always focused my investing in the suburbs as our kids pulled us to the burb early on. I also invest in the city now, and I have enjoyed the contrast quite a bit. I own in Albany Park and Irving Park, and I am finding that the rents are very dynamic there. At the same time, the taxes are creeping up on our properties, so there are still taxes in the city. The buildings we have in the burbs have performed very well. Berwyn made a bit more sense in the past, but is a little tougher to make work now as appreciation has happened. We still see deals in Forest Park, Elmwood Park, and other surrounding burbs from time to time. 

Hi @Andrew Burrell - Welcome to Chicago in the near future and congrats on your upcoming closing!

You are spot on, there are a ton of multi-family properties here in Chicago are price points across the board.  

The new loan program allowing 5% down and renovation is an amazing vehicle....given you have time on your side, if I were you, I would find a property that needs a heavy renovation and get it completed before you even get there.

I am happy to connect and make some introductions to some rock star real estate folks here in the area.

@Andrew Burrell

It's great to hear about your interest in real estate investing and your plans for purchasing a small multifamily property in Chicago for house hacking. Chicago is indeed a vibrant market with many opportunities, especially in the multifamily sector.

Here are some tips and considerations as you prepare for your move and property purchase in Chicago:

Research Neighborhoods: Chicago is a varied city with a wide range of neighborhoods, each with special qualities and investment opportunities of its own. To choose the neighborhood that best fits your lifestyle and financial objectives, take the time to investigate many options. Think about things like the demand for rentals and the accessibility of facilities, schools, and public transit.

Understand Property Taxes: Depending on the neighborhood and kind of property, property taxes in Chicago might differ greatly. Make sure to take property taxes into account when assessing possible investments. Increased property taxes may have an effect on your total investment returns and cash flow.

Make Connections with Local Investors: Gaining knowledge of the Chicago market may be achieved by establishing connections with real estate brokers, property managers, and other experts in the field. Join in on local seminars, networking events, and meetings for real estate to network with seasoned investors and gain insight from their experiences.

Evaluate your options for Financing: Investigate your choices for financing multifamily residences, such as conventional loans, FHA loans, and other mortgage programs. To identify the best financing option for your circumstances, compare terms, interest rates, and required down payment amounts.

Assess Property Management: Having dependable property management in place to handle your Chicago investment property is essential for long-distance investors. Make sure prospective candidates have the skills and knowledge necessary to manage your property by doing research on local property management firms and setting up interviews with them.

You may set yourself up for success as a real estate investor in the Windy City by investing the time to thoroughly investigate the Chicago market, connect with industry experts in the area, and perform due diligence. 

I wish you well on your investing adventure and encourage you to get in touch if you need help or have any more questions!

 Nice work getting your first property! You are correct that Chicago does have a lot of 2-4 unit properties and that is great news for house hackers like yourself. I've house hacked in Berwyn and Chicago for the last 4 years plus worked with many house hackers so I'm open to sharing my experience if that would be helpful.

Like @Jake Fugman said the first step is to connect with lenders experienced working with house hackers and talk about your financing options. There are nuances to house hacking here so you want to have a team (lender, agent, attorney, etc) that has a track record of helping house hackers.