All Forum Posts by: Dhru Das

Hello

I am trying to get offer submitted on a 4 unit property in Chicago. I am pre-approved with FHA 203k loan so I will be doing some repair to increase value of the property as possible. I will be living in one unit and renting out others once repair is completed.

I have couple questions

Will my FHA loan get impacted if I,

1) Convert the 4 unit to a larger 3 unit before/after the purchase? I am thinking to combine two 1st floor units to a large owner unit.

2)The property is zoned as 2-6 units..can I convert the building to 6 units later down the road and still be compliant with existing FHA loan or do I have to pay it off and then get a commercial loan?

Thanks!

I was thinking to apply for a rehab loan for a 3 unit building and then refi out after 6-9 months. The person I was talking to at JCF told me they provide short term loan for 9 months.

After reading all these bad experiences from folks here I am really starting to think whether I should apply with them or not...most likely I will stay away.

its in Austin...heavy crime = more headache

I have completed a gut rehab flip in Calumet Park..Horrible city officials..they will take money from you anyway they can...they gave me ticket for $1100 for uncut grass in the alley and some trash. Also check for very high taxes in Calumet city.

@Brie Schmidt my primary house is bought last year in June via conventional financing. As you said I should be able to get fha...that's awesome. Now I have to start looking for a 3-4 unit building in Chicago.

@Brie Schmidt...great information as always! I agree with you on condo investment.

I own my primary home which I purchased last year. Wish I knew there was something called house hacking:-)..This year I am looking into purchasing a 3-4 unit building in Chicago, live in one and rent out others..My question is do I have to sell my current home to get FHA or can I keep my current home and still be able to get FHA loan? I do like to sell my home first though as my current home won't be making any cashflow if I rent it out...also for conventional 5% down as Brie said it's only for first time buyer. Not sure if renting out primary home makes me first time buyer.

any suggestion?

@Aaron Linden and @Anthony M

How is the MFR investing in South Bend? I was keeping eye on a 19 unit property in South Bend on Loopnet but it went under contract as per the broker. I know like in Hammond or in NWI in general its more of SFR investing...not sure about South Bend.

Also not everywhere in Cook county is that terrible. Chicago cook county is worse. But south suburbs cook county I heard is not that bad when it comes to eviction n stuff...

Welcome to the forum @Bryce Beasley

Just make sure to do your due diligence before going with any deal from any turnkey providers, any wholesalers or anybody. If you are not sure about a deal you can also post it in the forums on BP for experienced and helpful folks to help out. We as investors want to make sure our money is being invested in a safe and profitable way. Also read blogs, listen to podcasts etc, all are free here and provide knowledge you need to succeed in real estate.

Lakeside bank, Chicago does it i think..but commercial only.