All Forum Posts by: Nate Grabner

Hi Tyler, did you end up going through with it? I'm facing a similar decision with my NW side duplex and debating whether its worth it to duplex up into the unfinished attic and if so what the steps/costs would be. 

I did something similar this past year - Had a 2+basement on 2 panels and split the basement and public space off onto a 3rd panel. I upgraded the existing boxes, split out the wiring for the third, installed a new grounding rod (wasnt one before), and moved the boxes from inside a garden apartment to the opposite side of a wall so that they were in a utility room. All in it was $6800. I was doing more than it sounds like you'd be looking to do, so this is probably a high estimate. PM me and I can give you the number of who i used - id called around alot and they had the best pricing by a solid amount for what i was looking to do. 

Like @Henry Lazerow, the standard bigger pockets calculators aren't great for Chicago. I recommend the one from the Straight Up Chicago guys instead as its more Chicago specific - https://www.straightupchicagoi.... 

Your water prices are also going to vary based on if its metered or not. Unmetered are always higher and the city currently isnt installing meters due to lead concerns. For a 2 flat I'd ballpark at least $215/mo unmetered

You also mentioned doing some TLC to raise rents. If you're wanting to rehab anything more than painting that also takes time and you'll want to have funds saved up for those upfront vacancies. If you can do it yourself you save on contractor costs, but you also take longer and risk losing another month rent. Your first mortgage payment isnt due until a month after closing, so you have a little grace there but you'll still want to have everything lined up to hit the ground running for any work you want to do. 

I bought my first house hack this past March and am happy to answer any questions and help you avoid some of the mistakes I made. 

Thank you everyone for your responses! @Aaron Zimmerman, just PMed you. 

@Jonathan Klemm To answer your question, its partially I'm interested in both and partially risk diversification. I've been investing in Crypto since I was still in college and am fascinated by the implications the technology has. I look at more of the technology vs the hype (less Dogecoin more Ethereum). That being said, crypto is incredibly volatile and alot of the projects out there probably wont make it long term. For real estate on the other hand, duplexes in Avondale probably aren't going to $0 anytime soon. When I take profits in crypto I cycle it into either my real estate fund or index funds to be more secure long term. The killer year crypto had last year is actually a big part of how I was able to afford my first place. 

Like the title says, I'm looking for recommendations on accountants. I purchased my first House Hack this year (2 flat in Avondale), and did a decent sized renovation as part of it. In addition to my W2, I also bring in income through cryptocurrency investing, so would be looking for someone with experience in both REI and crypto. Thank you and Happy Holidays!

@Ryan Monty just checking to see if you ever found an answer. I’d be interested in knowing the same thing

Hey Jaclyn, I just closed on my first house hack in Avondale at the beginning of the month. I recommend checking out the House Hacking calculator @Tom Shallcross and @Mark Ainley put together on the Straight Up Chicago Investor website. That's what I used to run my numbers. In Avondale you probably aren't going to be living for free unless you find a really killer deal or do a lot of work. 

My deal was a framed 2 flat(each 2 bed 1 bath) + garden unit and unfinished attic. If I had put no work in and didn't get a roomate then I was coming out at the same Hard Costs (not accounting for Maintenance, Vacancy, and CapEx) for my new 2 bed that I was previously paying for my rent share of a 3 bed 2 bath in lakeview. Then after a good mount of sweat equity and getting a roomate I'm expecting to be breaking even to maybe netting ~$50/month before putting aside savings for contingencies. So overall not living totally for free, but definitely a lot better off than I was before when I was renting.

Hey Jake, It sounds like I'm in a similar boat as you. I've been looking at 2+ADUs in Avondale, Irving Park, Albany Park, and into Portage Park and Hermosa. More than happy to connect! 

@Jaron Walling 75% of the rental income from the legal units need to be greater than the PITI of the property, so that when you move out the building is "self sufficient". So if youre looking at a 4-plex where every unit rents for $1000, your monthly expenses can't exceed $3000

Thanks everyone for the great answers! This has been immensely helpful. I'll definitely be reaching out to some of you with follow up questions. I'm definitely not afraid of a fixer upper assuming I can still get financing. I grew up in a house where my parents were always renovating a bathroom or building an addition, so at least some basic cosmetic repairs don't phase me much. 

@Jake Fugman aside from the self-sufficiency test, are there any other restrictions that often trip up FHA financing? For instance, I've read that sometimes ADUs in Chicago can cause issues - is this the case?