All Forum Posts by: Jake Fugman

@Michael M.  Try Big Brothers Development in Skokie, IL.  Ask for Mike (owner).  They work well with investors and do good work. 

@Conor M.  Hey Conor!  These are great areas that have seen 5-10% yearly appreciation in recent years.  Recent changes to the HomePossible program are hurting potential house hackers buying power so my precition is these appreciation rates will slow in the next few years.  However, that doesnt still mean properties in these areas arent a great investment - especially if you plan to owner occupy and leverage financing.

You will need to consider that the loan limit on a duplex for FHA is $471,000. A lot will depend on your budget and also your income to gauge what your debt/income ratio will allow since you will be eating up half of the rental income while living there.

Id also recommend looking slightly NW in Irving Park, Portage Park, and Avondale areas if you are OK with the distance from city.

@Grant Viola I just finished de-converting a 1906 house from a 2 unit back to a SFH and the floors had similar issues. If you plan to put new flooring down you can buy self leveling mix for about $25/bag and pour it in a few areas before putting the underlayment down. Make sure you or your contractor seals off corners and door jams with foam since it spreads like a thick liquid and will find holes/cracks to drip down into lower levels. Good luck!

Hey all, 

Curious if anyone has had success with offers submitted through the CCLBA (Cook County Land Bank Authority) on tax burdened properties.  Specifically the potential for properties other than vacant land tax certificates.  

Thanks!

@Eric La Pratt @Zack Karp

@Tony Brown I was in similar situation seeking a dual identity as investor/broker.  I found eXp Realty to be a great fit because they are could based so have low monthly fees and you can still self brand (ex: I hang with eXp but my investment company is On West Properties).  

Also, I would look for a place that allows you to do at least 2-3 free "personal" deals so you dont have to pay a split on your own investment sales or buys.  

@Brie Schmidt @Henry Lazerow @John Warren

Hey guys... from what Im aware the 5% down using Home Possible is still available for a 2-4 unit.  They only thing that changed is now the income can’t exceed 80% of the AMI (area median income), which is now $69,920 for Chicagoland (80% of the new area median income of $87,400).  This includes employment income and any qualifying rental income

Low income tracts no longer trump the income limit, and it was 100% of the AMI before, which was $84K. So buying power has decreased significantly for this program, but the 5% down is still available.

FHA is still a strong tool especially if underwriters would start to count non-conforming units into the total unit count. Has anyone had luck with this?

@Travis Wilkins Welcome to the windy city! I would say it all depends on budget and ROI expectations. If you are willing to house hack and live in a 2-3 unit there are come decent B-/C+ class areas where you can live for almost free. For house hacking 2-3 units I like Berwyn or Brookfield on the near SW side as well as some of the Chicago neighborhoods on the far NW side (Irving Park, Portage Park, etc).

If you want to do a live in flip your options open up if you have cash to spend on rehab. I would target towns with a Metra (train stop) where you can get a house just ugly enough for you to me OK living in.  Then target your flip to sell to first time homebuyers in that area who want something turn key and access to downtown. 

@Saul Trejo I really like the price/rent ratios in the south burbs. Ive had experience in similar areas and prefer close by towns of Homewood and Hazel Crest. For only a slightly higher price tag you get a much higher tenant class. Markham and Glenwood are OK as well and you can likely find SFH for around $60-70k that can rent for $1100-1200 with a little work.

@Lorenzo Perez  What did your agent tell you?  If listed as a 2 unit the basement is likely legal but "non-conforming".  You can still collect rent from a third unit - even if the building is listed as a 2 unit.  BUT its just important to make sure your lender is on the same page before closing because if you are counting the basement rent towards your debt/income ratio and the underwriter decides to request that a zoning certificate be pulled you could be in trouble.  

Feel free to connect and I can recommend attorney in the space.  Good luck!