Prospective Chicago Investor -First Property BRRRR/FHA/House Hac
Hi everyone!
I've been listening and watching the BP podcasts and youtube videos for years now and recently graduated from college. I've always known I wanted to get into real estate and thought what better time than now to get started. For the past few years I've tried to read, listen and watch as much as I could on real estate. After my research, I concluded that I want to follow the BRRRR method and/or acquire the property through FHA. I'm looking to purchase my first property within the next 6 months. I'm looking for either a duplex or triplex in Chicago and wanted to get some different perspectives and guidance during this process or just some things I should watch out for.
Some background information about me. I'm currently working in a Big 4 accounting firm for the past year and half. I have no debt and 45k saved up so for the acquisition and/or capital to put into the property. I was pre-approved for $390k from Quicken Loans/ Rocket Mortgage, but after they reviewed all my finances they were only able to approve me for $290k (I have self-employment income that wasn't able to be counted as income, but it will be for CY18, which should means I should be approved for $350-380k).
I was wondering what my next steps should be? I've done some research and talked to other friends in real estate and they said I should talk to a local lender in Chicago, because I might be able to get a bigger approval amount and maybe a lower rate, compared to Quicken Loans/ Rocket Mortgage. I was also thinking about filing my taxes in January, so the self-employment income would be counted when I try to go through the approval process again. I'm also starting to look at properties in person too (I just checked out my first property last weekend!). I was previously set on doing an FHA loan, but it seems like it would less of a hassle to just do a conventional loan and put down 5-10%. Please let me know your thoughts on any of the above!
For the people that live in Chicago or are familiar with the area. I currently live a mile north of the loop and looking to buy a property within a 20-40 minute commute ride, via public transportation into the loop. I'm mostly looking into Wicker Park, Buck Town, and Logan Square, but I don't believe I'll be able to find a triplex in those areas for less than $400k. Therefor, I'm also looking in Pilsen, University Village, Little Italy, and Little Village. Please let me know if there's any suggestions on other areas to look into for a triplex.
Thank you in advance for all the help!