All Forum Posts by: Luke Petro

This has been on my heart and mind.  I have some affordable housing in a low income neighborhood and I am constantly turning people away that have felonies or are recently released from prison.  

im curious if anyone with experience in this area replied to you privately.  If so, message me!

Keep the recommendations coming.  I'm trying to get a couple bids!

Thanks, Tom.  Calling now for a bid!

Hey Good People!

I'm looking for a good HVAC company in the Chicago area.  Any recommendations? Thanks in advance!

@eric whiting

Thanks for the response!  My friend definitely intends to occupy the property, and I will too if one of the units is big enough to accommodate my family.  

The neighborhood is a desirable and expensive neighborhood in Chicago. The only way we'd be able to buy in this neighborhood at this time is with an FHA, and maybe some tenants to offset the cost.

All that said, I need to research the subject 2 clause.  

I don't have a ton of capital so I'm definitely trying to find creative ways to grow my portfolio--but I'm no fraudster.  I certainly don't want to put a friend at risk who trusts that I know what I'm doing!

Hello!

Two and a half years ago, I bought a multifamily with an FHA loan, lived in it for about a year and moved out.

Then last summer, did the same thing, this time with Home Possible.  

I was planning to get another FHA loan this summer (I have a qualifying event: had a baby), or refinance the first house, and do it one more time. So I called a couple lenders and they said, "no way you're going to get another owner occupied loan like this through underwriting, at least this soon."

I was explaining this to a non-investor friend, who wants to buy, and his ears perked up. He said, "I want to do what you're doing but I don't really have time or know how," and offered to let me leverage his FHA if I paid the down payment, managed the property, and taught him what I know.

So there it is: he secures the financing and I get added to the title after close. 50/50 partners on an FHA deal.

I thought I would share this scenario with the BP community and see if I'm overlooking something.  Could this work on the financing/legal side of things?

@Brie Schmidt @David Kazarian

Thanks for the replies.  I spent the day calling brokers and they confirmed what you said!  I'll pursue other options before I call portfolio lenders.

Hey Ryan,

I lived in an area called--more specifically--the Island for 10 months.  Its on the border of Oak Park and Cicero. The neighborhood as a whole is fine and much better than the rest of Austin.  There was a lot of drug dealing going on right next door.  After I had my son, we moved.  My tolerance for risk evaporated.  But if I was single, it's the kind of neighborhood I'd live in and I wouldn't bat an eye.

I own an investment property in Chicago.  The remaining principal is about $240,000 and I'm confident that it will appraise at $330,000.  

I used lending tree to find a lender that would let me take $50,000 with no success. All the big lenders want it to be a primary residence or a much higher LTV.

Are there lenders in Illinois that will let me cash out refi on an investment? Maybe some you BRRR investors in Illinois have some recommendations?

Thanks in advance!

Hi Robert,

My wife and I have house hacked two houses here in Chicago.  The first time, we bought a three flat on the West Side. The returns were great.  We lived in the third unit and still made a couple hundred bucks after all our expenses.  The neighborhood was not great and that didn't bother us until we had our first child.  At that point our tolerance for risk plummeted.  

We repeated the process in McKinley Park.  Bought a three flat that was 100k more than the first with comparable rents.  After we move out, we'll only cash flow a few hundred bucks, but that is the better deal for us-- at least in this moment.

There's definitely money to be made in this city if you're house hacking but it is going to depend on the neighborhood. 

best of luck!