All Forum Posts by: Kevin Huang

@Tushar Shah I am currently under contract for my first 3-flat (that's the Chicago vernacular apparently) in Pilsen.  I'm happy to chat with you and share what limited experience I have so far.  I would also highly recommend speaking to @Brie Schmidt - she's VERY knowledgeable about what it appears that you are looking to do.

 Thanks - I realize that they are different, the three options I provided above are just that, optional.  I've never owned any property period before so I don't really know how valuable these options are, hence why I'm asking for opinions.

About to close on my first investment property (first property ever for that matter) and am in the process of getting homeowner's insurance quotes.  So far, it seems like my best option will be to go with NatGen as the provider, but they offer some additional options that I'm unsure of regarding their value.

1. Water backup insurance

2. Appliance & equipment breakdown insurance

3. Service line coverage insurance

Does anyone have experience with NatGen, in particular these three options?  Any thoughts/advice are greatly appreciated!

 Yes and yes.  Here is the prop in question:

https://www.redfin.com/IL/Chicago/1739-N-Rockwell-St-60647/home/13415298

 Looks like you beat me to it - thanks for clarifying the neighborhood.  On the map it looks closer to Wicker than Logan, but either way it seems to be in a *decent* area.  Granted, I haven't spent too much time outside of the LP/Lakeview area so I don't exactly know what I'm talking about.

 It's the Rockwell property.  I wasn't sure if I should post the address or not...

Came across a ~3200 sq. ft. 2 unit property in the Wicker Park/West Town area of Chicago listed at $450k, which seems like a bargain especially considering the area and the condition of the property. Everything is fully finished including the attic and basement, appears to be well maintained, and has 2.5 car garage space as well. Located extremely close to the 606 (recreational running/biking trail). Existing tenants are paying less than 50% of the market rate for rent and I'm unsure of how easy it will be to raise income to market, but assuming that is possible, it will be ~6.5% cap. Separately metered for electric/gas/heat.

Unit 1:

3bed/2bath

Unit 2:

4bed/2bath

Chicagoans (or those familiar with the area), would you agree that this seems to be a good candidate for a flip? I currently do not meet the loan requirements to engage this deal by myself, but would be very interested in partnering with someone if anyone out there is interested!

Came across a ~3200 sq. ft. 2 unit property in the Wicker Park/West Town area of Chicago listed at $450k, which seems like a bargain especially considering the area and the condition of the property.  Everything is fully finished including the attic and basement, appears to be well maintained, and has 2.5 car garage space as well.  Located extremely close to the 606 (recreational running/biking trail).  Existing tenants are paying less than 50% of the market rate for rent and I'm unsure of how easy it will be to raise income to market, but assuming that is possible, it will be ~6.5% cap.  Separately metered for electric/gas/heat.

Unit 1:

3bed/2bath

Unit 2:

4bed/2bath

Chicagoans (or those familiar with the area), would you agree that this seems to be a good candidate for a flip?  I currently do not meet the loan requirements to engage this deal by myself, but would be very interested in partnering with someone if anyone out there is interested!

Thanks for the responses everyone.  To clarify, I have two options available to me:

-5% down conventional loan

-3.5% down FHA loan

My question essentially is if I use one of these loans, does that knock out my ability to use the other loan on a future purchase?  Do the benefits that either loan offers make it worth forgoing the ability use the other loan?

Also - I will be living in one unit and renting out the rest, which I should have clarified earlier.

I'm looking to make my first investment (3 or 4 plex) and have gotten varying advice as to which method to finance it.

Some have told me that a 5% conventional is the way to go on the first property as it will allow me to leverage the 3.5% FHA loan on the second investment that I make, whereas going for the FHA loan on the first investment makes it so I can't ever use the 5% conventional.

On the other hand, one lender has told me that even if I use the 5% conventional first, the 3.5% FHA is *effectively* no longer an option for me (I can't really recall the exact reasons he gave). He also stated that the MIP would be higher for the 5% loan when compared to the FHA.

Those of you with more experience in this area, can you help provide some clarity on the above points?  What would you recommend that I go with?