We moved into a nice house in Florida when I was a sophomore in high school.

Sometimes, buying an existing property can be more cost-effective and less time-consuming and maybe require slightly less permits, etc. 

For 5+ unit properties or commercial it is not as high.5.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

With a dynamic real estate market, diverse neighborhoods, and high rental demand, Chicago is a fantastic place to invest in house hacking. 

The rate will also be high. 

While it requires some extra coordination, it keeps their returns clean and operational costs transparent.If the fee feels too high, consider loan servicing software with modular pricing.

Hey Christopher,Regarding utilities, if they are not on separate meters, I highly encourage implementing RUBS for w/s/t.

If you are looking at a 30 yr fixed DSCR, high 8s-10s depending on LTV, PPP, and Unit Count Rates highly depend on the type of loan and your qualifications.

On the flip side, the margins aren’t quite as high as with rehab projects.