All Forum Posts by: Henry Lazerow

This forum has tons of excellent free real world information. If you want to learn a bit about analyzing properties check out GET REFM (I am in no way affiliated with them) their video tutorials are amazing. I bought a few of the chapters early on and learned a lot in regards to the financial aspects of investment which isn't as covered on this forum. I still use some of their Excel docs. 

@Maggie G. I would be happy to grab a coffee with you and answer any questions you may have/tell you a bit more about investing in chicago and won't charge you a penny for it ;) Shoot me a PM 

@John Casmon

Due to the age and being grandfathered in it was actually pretty quick change to the zoning doc to show that it was legal 4. Pretty simple process most any title company can order a new zoning doc made for you. Not like trying to change the actual zoning of the area which would be a much longer process.  

I just leased up two units in East Garfield Park and would be happy to share our experience. The area has gentrified in terms of economic class and has a strong demand due to its proximity to the train line. On our penthouse unit in the 2900 block of washington we had multiple applications even one with 3 college students who had co-signers. We ended up taking a non-section 8 renter with great credit 720 and a stable job. Our less nice unit in the 2800 block we had a lot of showings and got some applicants in the high 600's about to accept them. 

I have seen some great flips going on over there and single family conversions out of old 2 flat graystones. The area also cashflows nice for a hold so really just depends what your goals are.

Thanks Syed just sent you a connection request. The title company filed for a new certificate of zoning compliance and we had it about a week later. 

I was the Broker representing the buyers side. Happy to walk my Biggerpockets friends through the before and after! 

3 units + 3 story coach house (was 2 units we are converting into 1 luxury 4br 2ba). Bought for $730,000 within 72 hours of list in MLS. Multiple offer situation (later learned ours was not the highest) we got the deal by offering high earnest money 25k and 75k providing a strong offer. Property ended up appraising 20k over! We are also hoping that the new Lathrop Homes redevelopment of the old housing projects nearby appreciates this area even more.

Project plan: Value add to the 3 units + Coach House through a rehab. We are putting roughly $40k into each unit which includes new floors, kitchens, updating bathrooms and moving a few walls to open the units up into a more modern layout. The units came in good shape and passed the inspection with no major issues but were cosmetically outdated and as you can see full of junk, fun cleanup :) Our goal is to create gross rents of $8550 per a month or $102,600 annually. We will then either sell the property at a mid 6 cap or refinance out of the construction loan and hold long term. We are very bullish on this area and have prior experience in the direct neighborhood. 

Road bumps: Had the property rezoned to certify legal 3 units+legal 4th unit coach house which delayed the close for several weeks. 

Construction is set to commence at the beginning of December. Will be posting some after construction shots next ;)

Test

As mentioned above yes enforce your lease. In many jurisdictions rules you let slide and are "ok with now" often cannot be enforced at a later date. 

Are you looking for a 2 flat to cashflow fully rented or to subsidize owner occupancy? 2 flats are tough to really cashflow in these areas. I did see there was a really nice 4 unit posted this week along Humboldt Park for a value add through a rehab.  

I live right at North and Western and am very familiar with that area for investments/rental rates. Feel free to reach out if you have any questions or would like to chat sometime!