There are REIA up the Ying Yang, Investors and lenders of all times.

You do not want to buy this property until this is resolved in case you are made to demo the unpermitted addition or pay fees to resolve the permitting.

@David Friedman I found this housing study that was done on ChicagoMain Site:http://www.housingstudies.org/Housing Plan Report: (lists income and demo by area)http://www.housingstudies.org/media/filer_public/2013/10/01/ihs_2013_overview_of_chicago_housing_market.pdf

Demo already begun and engineer and architect meet coming.

Our goal has always been to find a "forever" multi-unit in the city but the more I am thinking about it, the more I am thinking about the possibility of demoing our current 3 flat and building a multiunit, exactly how we want it, on the land. 

Here are some thoughts on it :20% down on the sum of purchase price plus rehab dollars30 year term loan with rates around 5% No prepayment penalty – can flip anytime you want once construction is done and fully inspected by our construction consultantRehab funds controlled by the borrower – no funds ever given direct to a contractorSeller can pay up to 2% of the buyers purchase price as a credit against closing costsLender can increase the rate to offer more cash to pay buyers closing costs so they drop to zero – if flipping the rate doesn’t matter if only making 5 or 6 paymentsYou must use a GC that has to be checked out by the lender and the project approved by the construction consultant – you can do painting or demo but that’s it unless licensed in a tradeBest feature is loan is based on the ARV of the house, not what you paid for it

they don't see a big dumpster full of demo junk and figure out there's a rehab going on, since the flipper took out a regular homeowners policy and ignored the fine print saying they won't cover you if you're doing a major rehab for profit on this place!

I didn't let them see it though till demo was completed.

But still crazy early nonetheless ;-)As for the rehab, we have just completed the demo and foundation work.

They have a demo auction but it seems they need all financial info and deposit.