All Forum Posts by: Nicolas Tow

In August of last year I purchased an empty lot in an up and coming area of Chicago. I am currently building a new construction single family home with this land. Since I am new to real estate investing I was wondering if I would pay capital gains taxes when this property sells? Or would I have to pay taxes via something more along the lines of self employment taxes? Also if I pay capital gains would my tax rate be lower since by the time it sells I will have owned the lot for over a year? For background this is my first investment and I own the property personally not with an LLC or anything of that nature.

I just checked my zoning and it just comes up as “SINGL” I assumed it would be RS-3 since the lot is 25X125 and the area is mostly RS-3 Zoning lots. However my architect informed me that in order to do multi unit for RS-3 such as a Duplex 60% of the properties on the block would need to be multi unit instead of single family homes, and I ran the numbers out to be 53% of properties are multi unit not meeting the 60% threshold. Is this correct? That is why I came to believe I needed re zoning. Sorry for the confusion. The address is 820 N Lawndale Ave,Chicago,IL,60651 if that helps.

I recently purchased a 3,125 square foot empty lot in the 27th ward area of Humboldt Park Chicago and I was wondering how difficult it is to re zone from RS-3 to RS3.5 or RT 4. I was hoping to do a new construction Duplex. Is very difficult to re zone in that area? Appreciate any help.