All Forum Posts by: Michael Mahung

Quote from @John Warren:

@Michael Mahung you would want to consult with an architect ASAP. To make this a legal unit will not be as simple as you think. You will need the architect to make sure you can pass all the code issues, and you will likely end up doing some extra work you are not anticipating. Things like electrical upgrades, water service upgrades, and other costly CapEx upgrades go into making a unit legal.

On the flip side, the architect will define all of the material for you. You wouldn't have any questions about if you are getting the right type of materials as the plans define everything for you. 

Thank you! 

Quote from @Juan David Maldonado:

Hey! How do I go about choosing which lender to go with when it comes to real estate investing? Buy and hold BRRR is the strategy I am going with. I have $10k saved up at the moment and I have good credit.

I would work with multiple lenders/brokers and see which one can give you the best rates and have the best programs.

Some lenders give grants for first time homebuyers to cover down payments and closings costs as well. Make each lender bid against each other until you have your winner

I am considering making an offer on a 3 flat in Chicago and plan to finish the basement.
Before I just jump in head first, I wanted to get some opinions from people with more experience than me.

What is the usual process for finishing a basement, what materials should I buy for the contractor(s)?
I've had some people tell me I don't NEED to pull permits, but I would like to get everything done right to avoid fees and issues if selling.
If I did pull permits to finish the basement (making it a legal 3-unit w/garden apartment), would there be any changes in the properties zoning?

The basement is a full-walkthrough with 8-9 foot ceilings - I'll link a couple of photos for reference.

Photo 1 - Potentially bathroom & bedroom

Photo 2 - Potentially living room & kitchen

Thanks!

Quote from @Paul De Luca:

@Michael Mahung

Brighton Park and Little Village have the highest concentration of residential units in 2-4 unit buildings in Chicago (70% and 71% respectively). The areas are comparable in my experience (rents, taxes, demographics). I'm optimistic about Marshall Square (eastern Little Village) with the proximity to the pink line & Pilsen along with a decent retail presence in the area.

I think Canaryville is a bit underrated since I hardly hear anyone talk about it.

Really interesting, I didn't realize the multifamily concentration was so high - although that does explain why there are so many on the market in that area. I've heard that areas with high concentrations of multifamily/owners tend to be nicer because the owners will take better care of the properties, not sure how accurate that is though.

I'll have to dig into Marshall Square some more, I had overlooked it initially.

Thanks!

Quote from @Edgar Barbosa:

Quote from @Michael Mahung:

Thanks for reading - this will be my first post so excuse any strange formatting.

1. I have lived in the north suburbs of Chicago (Evanston/West Ridge) most of my life and have been wanting to start investing.
2. Based off of a few pre-approval letters, I can realistically afford a multifamily unit under 375-400k

With this in mind, I have been finding a lot of potential properties in the following neighborhoods:
Humboldt Park
Austin

Hermosa
South Lawndale (Little Village)
McKinley Park
Brighton Park
Back of the Yards
Canaryville

Does anyone have any strong opinions about any of these neighborhoods?
I've driven through most of them (minus Canaryville) but I'm not too familiar with the good/bad blocks.

 Pleasure to meet you @Michael Mahung! I grew up in Chicago, right next to the Brighton Park area; Marquette Park. I also worked next to Evanston so I'm very familiar with your situation. Many of those areas are experiencing growth. I think that it will depend on your goals and exit strategy, if any, on how you approach your search. Those areas have their advantages and disadvantages in their own right. If you narrow it down further, I believe you will be able to make a more informed decision. Reach out to me if you would like to discuss those areas in further detail. Best of luck on your search. 

Got you, my goals for my first property are to eliminate my housing expenses and potentially cash flow - Exit strategy would be to buy a value add property and cash out refinance after repairs/upgrades are finished to buy another property. I'm planning to use a conventional loan with 5% down on the first and a 3.5% FHA for the second.

I'll keep looking for now and reach out if I do narrow things down - thank you

Quote from @Steven Caldwell:

Quote from @Michael Mahung:

Thanks for reading - this will be my first post so excuse any strange formatting.

1. I have lived in the north suburbs of Chicago (Evanston/West Ridge) most of my life and have been wanting to start investing.
2. Based off of a few pre-approval letters, I can realistically afford a multifamily unit under 375-400k

With this in mind, I have been finding a lot of potential properties in the following neighborhoods:
Humboldt Park
Austin

Hermosa
South Lawndale (Little Village)
McKinley Park
Brighton Park
Back of the Yards
Canaryville

Does anyone have any strong opinions about any of these neighborhoods?
I've driven through most of them (minus Canaryville) but I'm not too familiar with the good/bad blocks.

 I great up just north of McKinley…it’s the park I used to play in when I was younger. It’s come a long way since back then. Ima. Huge fan of Humbolt. I live just east of there now. It’s so close to everything(Milwaukee strip an everything on Fullerton)

 Thank you! Right now East Humboldt would be my best case scenario (proximity to CTA, Highways & Shopping) - I'll keep looking

Thanks for reading - this will be my first post so excuse any strange formatting.

1. I have lived in the north suburbs of Chicago (Evanston/West Ridge) most of my life and have been wanting to start investing.
2. Based off of a few pre-approval letters, I can realistically afford a multifamily unit under 375-400k

With this in mind, I have been finding a lot of potential properties in the following neighborhoods:
Humboldt Park
Austin

Hermosa
South Lawndale (Little Village)
McKinley Park
Brighton Park
Back of the Yards
Canaryville

Does anyone have any strong opinions about any of these neighborhoods?
I've driven through most of them (minus Canaryville) but I'm not too familiar with the good/bad blocks.