All Forum Posts by: Mantas Motekaitis

Thanks everyone for your thoughtful responses.

I did not realize that a HELOC is harder to obtain on a rental property. Why is this? I have also realized that property taxes will significantly go up since my great uncle will no longer live there, thus removing his senior status and owner-occupied.

@John Warren @Jonathan Klemm The property is located in Bridgeport. I think the neighborhood is growing in popularity, to me it seems like a promising neighborhood to invest in. I'd be interested to hear what others think.

@Benjamin Seibert One of the things that is difficult for me to understand is the amount of equity in the property. The mortgage was paid off long ago and the property is assessed at $383,000 by the city for taxes. Is this number safe to assume as equity in the property or will the bank come and appraise a different value when determining a LTV?

Hi BiggerPockets community,

My family is inheriting a 6 unit multifamily in Chicago from my great uncle. With his old age he unfortunately failed to keep up with building maintenance and rented the units for $425 a month. There's a large pile of renovations that need to take place (foundation lift, roof repair, windows etc...).

I see it as a great opportunity to restore it to a functioning rental property, especially given that there is no outstanding mortgage. I have local property management lined up to address the tenant problems and help with renovation. 

I'm looking for some advise on how to finance the initial renovation cost. I am considering a HELOC. If I went that route does anyone have recommendation for Chicago HELOC lenders?