Chicago 2 Flat BRRRR diary
I purchased 11147 S Longwood in Chicago on June 26th for $159,000 @ 4% down with all closing costs paid by the buyer. The home was listed for $200,00. The home was listed as a SFH with related living. The home has 2 hvac systems, 2 kitchens, 2 baths, 4 bedrooms and 4 entries/exits. The home bed the following repairs;
New doors
New windows
Fresh paint
Refinished hardwood floors
New central air
Block off doorway connecting two apartments
Legally change zoning to 2 family
2 New fridges 2 new stoves 2 new washers 2 new dryers
New bottom cabinets
New countertops
Install light fixtures in each room
Reglaze tubs
Replace bathroom fixtures
Install sub panel for 2nd unit which previous owner removed.
Replace all outlets & switches
Install vapor barrier in crawl Space
The cost of the job is as follows;
-New 2 ton compressor/new coil & supplies $1100
- Central air install $600
- Sub panel supplies & install $500
- All supplies & utilities $15,000
- Labor $6,000
- Appraisal $500
- inspection $400
- Lawyer $500
- Lawyer fee for zoning correction pending
When we began the rehab we noticed the previous owner created a doorway between the apartments and originally the was a brick wall between the two units. The neighbor of 40 years recalls it being a legal two flat prior to the previous owner purchasing.
Adjacent to the rear of the property is the Metra commuter train to downtown. This is a major attraction for tenants.
The building only has 1 meter for gas, electric, water so I will be responsible for this expense. I listed the units on Zillow as follows
3BR 1BA $1650 per month +$150 utility fee
1BR 1BA $1075 per month +$125 utility fee
I a weeks time, I had 50 calls to see the units. I only replied to text and emails and sent the application.
Today, I showed the apartment to 4 prospects and secured one for each unit. Tenants were eager to sign despite the apartment not being ready until August 15th.
Cash invested $31,000
Financed $155,200 @4%
Monthly payment $1,231
Monthly gas estimate $100
Monthly water estimate $125
Monthly electric estimate $125
Monthly income $3,000
Monthly expenses $1,531
I will add pictures once complete and update as I go.
The home appraised for $172,000 prior to rehab and as a single family home. I will be looking to refinance once the zoning is complete.