All Forum Posts by: Dhru Das

@Joel Ortiz

I did a deal in Chicago south suburb when I first started investing with a group called Chicago Action Investors. Founder of that group aaron vaugn provided me with a wholesale deal and told me we will do a QC deed. I didn't know much about real estate that time and I trusted him for the deal. I met with him, the seller and the wholesaler in front of the house and signed papers in front of a notary and house was mine theoretically. However, one week later I went to village hall to get water turned on for the house so I could get rehab work started. To my surprise I was told the house does not belong to me! Village record shows house still belongs to previous owner even if I already paid for and had QC deed papers notarized. Village told me it doesn't count as it's not recorded in county office! And soon enough the seller came back saying she wasn't paid by the wholesaler what she was promised and claimed house still belongs to her. The village would not turn on water!...I had to engage an attorney and after a week of going back and forth I finally had to pay her off with extra money on top of what I already paid during QC deed and then get it recorded in the county. I guess if Aaron Vaughn had done his job right I would not have faced this issue...I will never do any deals with Chicago Action Investor group in future...

Long story short, make sure even if QC deed is done, it is done the right way, meaning get it recorded, engage an attorney etc like with any proper closing...it will save you a lot of headache.

@Luke O'Connorfor that price range finding a turnkey 3 unit building will be difficult unless you get a off market deal in those areas. Did you consider other areas close like Albany park, North Park, Jefferson park etc? Properties are still available in your price range for 2-3 unit buildings. If you are willing to get some work done you can get a better deal. I just closed on a 3 unit building in Albany Park which needs some work. If it was renovated already I wouldn't be able to get it at the price point. I am using FHA 203k loan with 3.5% down and will get the work done.

Even in Avondale, Irving or Logan you can get buildings that need some work. That would help negotiating with the seller as there won't be bidding war I hope.

@Keith Brock small credit unions are the way to go...they can be creative!

I also like the individual room AirBnB vs entire unit..as @Ryan Aydelott said entire room AirBnB will attract larger group of people normally looking to throw parties...safer to list individual rooms with amenities such as wifi, neat and clean bedroom/bathroom, breakfast areas, work desk etc which will attract business travelers and younger population.

@Shaun R. congrats!

@Jake Haley I am in Chicago, and here also maximum cash flow is in south side areas. But its block by block due to heavy crime..so not knowing a block and buying could be really bad...I guess every bigger cities have this issue...

@Peter Halliday I have tried the same but hadn't had any success yet...may be due to sellers being aware of market is better now and they don't want to carry the note when they can get buyers willing to pay market price..But I have a lead where seller is willing to pay 25% down payment for the lender that I chose and I will pay him interest only until I can refi out, possibly in 6 months or so after the normal seasoning period..will see how it goes and let you know.

@Marco Morales welcome to BP!...Good to know you already own a multi unit building in Pilsen. Plisen is great and appreciating rapidly...good luck with your investment!

I am very specific about south side and only interested on Chatham, some blocks in south shore, few blocks in Woodlawn area...No east Chatham. Small multi family to larger ones are fine..if you have any of these let me know.

@Leo Guerrero welcome to BP!.

As @Crystal Smith said, first make sure how much you can get preapproved for VA loan. Then 2-4 unit multifamily house hack would be a good option. Chicago NW side are safe areas with good cash flow like Belmont cragin, Dunning, Portage park etc.