All Forum Posts by: Hemang S.

It would be best to check if the zoning certificate is recent. I was under contract for a 3 unit, but when the seller requested the zoning certificate, the building and zoning department of Chicago backtracked their 2014 certificate (which clearly stated it was a legal 3) and said it was only a legal 2 unit with an additional commercial space. I've heard this has happened a handful of times in the last 6 months- the city of chicago seems to be changing the zoning for properties that weren't upzoned in the proper way and with all the proper documentation.

Maybe @Samuel Pavlovcik or @Prashanth Mahakali can give you some guidance. 

Thanks for the info everyone. @John Warren, the situation you described is almost exactly what the seller is experiencing. I saw their zoning certificate saying it is 3-unit, but now that it is being sold, the city said it is a 2-unit. It sounds like you were able to contest what the city said and so I expect we can do the same.

@Jonathan Klemm. The property is not really on a busy street, but the first floor used to be used as commercial space a while ago so I am assuming it has something to do with that. I'll check in with the contacts you mentioned and go from there. Thanks for the assist!

@Tan Su, the property was actually accepted as a 3 unit in 2014 but now the zoning department is rejecting that. The 3 units are all above ground. Does that change your suggestion?

If anyone has attorney suggestions, I would appreciate them. Thanks!

Hi all. I am under contract on a Chicago property that has 3 cashflowing units but the zoning cert says it is only a 2-unit + commercial space (which has been turned into a 3rd unit. It is zoned RT-4). I am wondering what the rezoning process is like and any advice you have from that front. If rezoning is just time consuming, I imagine a price reduction on this property would make it worthwhile. Thanks for your help and tips in advance!

Hi Tim, I am currently doing the same thing in the Chicago area. Please message me and I will share the details of my lender- he is fantastic.

Thanks @Jonathan Klemm. It's true it may not be worth the fight for those few inches.The Chicago departments are giving me the run around and saying that there isn't anything they can do about the situation. They basically said it is just a property dispute between two owners and they have to hash it out together. 

Thanks for all the helpful suggestions! I'll try the lawyer route first and go from there. 

We are in Chicago and the lot next to ours was just bought by a contractor/builder. He just finished demo-ing the old building and told me that our property encroaches on his (according to his survey) by 4 inches- the 4 inches are all sidewalk but would make the walkway on the side of our building narrow if taken away. The 4 inches were part of our property when we purchased it but our survey said there was a 2 inch encroachment. The builder said he is going to keep working unless he gets a legal notice from our lawyer.

I just saw that he actually already cut away some of the concrete side walk from our property and was shocked that he would keep building (and cut out part of our sidewalk) before the survey issue is figured out. I am wondering a few things:

1) What would you do in this situation? 

2) When the two surveys conflict, how do you get the builder to stop building so things can get figured out?

3) Any lawyer recommendations for this in Chicago?

4) Any other advice for me?

Thanks in advance!

Hey all! I am considering getting a 203K or Homestyle loan to house hack a 3-unit property in Chicago. I know that the 203K is not competitive in this market, but I am wondering if a rehab loan is a terrible idea because of increased labor and materials costs, lack of good contractors, and increased timeline on order materials.

What do you all think? If you are currently doing something like this, I would love to hear about your experience too. 

Thanks @Greg Franck and @Joe Splitrock! Since it is one building (and rents are good), I imagine that my estimates based on percentages will be a good amount over the real amount needed. I'll be an owner occupant too, so it should be possible to catch things as soon as they come up, but it's probably a good thing I have a buffer for whatever other mistakes I am bound to make as a new real estate investor.