Chicago Market - Recent Successful 2-4 unit house hacks?
Hello everyone at BiggerPockets! I have been lurking on BiggerPockets for a few months now. I recently decided to get serious about changing my living situation from renting to becoming a home owner. I am currently using a few realtors and lenders as I search for deals on the north side of Chicago.
My question is simple, has anyone had any success in the year of 2020 with purchasing a multi-unit house hack on the north side of Chicago? Areas not including North Austin, Hermosa,or any other gentrifying areas. Is this possible in 2020 using an FHA loan for a three or four unit property? Conventional loans at 5% are impossible for a three or four unit property. Two flats seem to all net negative, though they are the only ones possible from a 5% DP perspective... even including a garden apartment.
Breaking even, were you wouldn't need to pay, would be a success. If you found positive cash flow, that's even better. Potentially paying a small sum, while the rest of your unit(s) pay the majority of your mortgage and expenses, would be positive.
The BiggerPockets rental calculator shows the market for the north side cash on cash returns on two flats as negative 100% of the time. Cash on cash for three flats properties are neutral or slightly positive, until you include FHA into the deal as a 5% conventional isn't possible. Deals that allow you to live in the property while renting the other units won't ever break even when you move out and rent that last unit. One would end up operating at a net loss once you exit the property for a better deal.
I would like to use my own capital and a lenders to purchase something to live in while generating some income, or at least reducing what I already pay in rent.
Is this is a pipe dream on the north side of Chicago?
Sorry to sound so negative on one of my first posts. I assure you I am a happy and optimistic young man. I would only like to ascertain if I am wasting my time in this market.
Thanks everyone!