All Forum Posts by: Andrew Lake

@Henry Lazerow thanks for the mention and @Mark Ainley thanks for inquiring more about the ARO program with your network. Look forward to getting some more info on this as it becomes available. 

Hello,

I've come across a few multiunit properties that mention they are part of the City of Chicago's "Affordable Requirements Ordinance (ARO)" off-site program and have set annual rent increases. I'm looking for some more background as I am completely unfamiliar with the program. What are the incentives for developers in these areas? What are the advantages/disadvantages of buying an existing property that is part of the ARO program? Does the rent cap in these areas change every year? Appreciate any insight on this, thank you!

Andrew

Hi @Angela Smith. I'm looking mostly at multi-family but some single family as well. My budget for multi-family is $150,000 or less. For single family, $100,000 or less. With that budget, it seems like I'll be targeting C class neighborhoods. I'm still getting familiar with the neighborhoods, but I'd say my favorites right now are Speedway, Irvington, Little Flower, and the area surrounding Butler.

Hi all,

I'm a new investor located in Chicago. The growth prospects and current values around Indianapolis have recently peaked my interest in the city. I'd love to connect with other out of state Indianapolis investors, share connections (PMs specifically), and hear more about what areas are of particular interest for cash flow and appreciation opportunities. I'm planning to visit Indianapolis in a few weeks to get a real feel for the areas I'm interested in with my boots on the ground and would appreciate any input. Thanks in advance!

Andrew

I’ve made a few offers on multiunit properties in Chicago that I would be house hacking but haven’t had any luck on getting an offer accepted yet. With my current financing, finding deals that work for me in areas I’d want to live in where the numbers work and minimal/no rehab is necessary has been difficult and getting an offer accepted has proven to be even more difficult. I plan to continue this search but I want to start to broaden my search/strategy in the long term as an investor.

How can I start to become familiar with estimating rehab costs on a deal? With a limited budget and no experience yet, what are the best ways to obtain the financing necessary for a deal that involves rehabs? How can I (confidently) predict ARV on a property once I've come up with a list of rehabs and costs?

Thanks in advance!

@Henry Lazerow I'm a new investor in Chicago and am finding that many of the properties I'm interested in have non-conforming units. When looking at different properties on the market that may have such units, what is the process for finding out specifics of the zoning and what changes could be made to have the non-conforming unit legalized or the property rezoned?

@David Prince sounds like an awesome deal! As a beginner investor in the Chicago area, it's really cool to hear about creative deals that work out like this near the region. Best of luck with the renovations!

Congratulations @David Prince and best of luck with the renovation! How was your experience in financing the initial purchase? Did you go through a hard money lender or finance in a different way?

@Kris L. I've heard of transferring ownership of a property to an LLC, but to my limited understanding this is not possible with an FHA loan. I was just asking for general advice on forming a legal partnership agreement on this first property we are interested in house hacking and financing with an FHA loan.

@Sarita Scherpereel @David M. Thank you both for the input! I will keep the ideas of a partnership agreement and multi-member LLC in mind as I move forward and work with an attorney to figure out the best decision for my partner and I.