Multi family to house hack, The search has began

Member since 2026 · 27 posts · 8 votes

Hello my name is Erick, I posted about my house hacking journey beginning and received tons of great advice. Thank you all for that! It's officially has been a week of looking at properties and man it's exciting and scary. I know Rome wasn't built in a day and I'm patient. Any tips on multi unit properties? What to look for? But mainly any properties that are worth looking at?? 400k is my cieling which put me a small box and I'm trying to stay in the northwest side of Chicago and maybe even melrose park and surrounding suburbs. My area gets bigger and bigger the more I search. Thank you all in advance!

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Andrew GlissonBusiness Member

Property Manager · Memphis · Member since 2026 · 135 posts · 95 votes

7mo

One angle most people overlook at that price point is buying a lot and building instead of forcing a bad deal.

A lot of lenders will work with you if you have a solid plan, realistic numbers, and a good lot, especially if you’re owner occupying. You often get better layouts, lower long term maintenance, and units that actually pencil instead of compromising on an outdated property.

[email protected]832-477-1007

LPS Short and Long Term Property Management

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Josh ReighardBusiness Member
Real Estate Agent · Des Moines IA/Chicago, IL · Member since 2017 · 29 posts · 17 votes
7mo
Congrats on the start of your search Erick! My biggest advice is to just get started! The first property is so important in regard to beginning your journey. It won't be perfect, but it is the start of a lifelong journey (hopefully) in real estate. Buy what you know. I would stick to neighborhoods you are comfortable in. The numbers may look better in other neighborhoods but familiarity is really important for house hacking imo. Also, since you will be renting out one unit and living in other, make sure the rental pool/price make sense. Look for mostly turnkey with properties where you can do light rehabs, cosmetic improvements. Best of luck on your journey!
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- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Josh Reighard thank you very much
  0 Reply
Bo SmithPro Member
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
7mo
Week one energy is the best! For multis under 400k, walk every unit if possible - deferred maintenance kills deals fast. Are you focusing on duplexes or looking at 3-4 units too?
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- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Bo Smith I'm trying to focus on a duplex so I don't bite off more then I can chew especially this being my first time
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Aaron ZimmermanBusiness Member
Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
7mo
At $400k you're going to be a bit hard pressed to find anything worthwhile on the northwest side of Chicago. I'd recommend looking in the near western burbs such as berwyn and Cicero. You can find some decent inventory there.
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- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Aaron Zimmerman thank you for you time and oh trust me my eyes are open to the suburbs but the property taxes are very high and leaves for little room.
  0 Reply
Andrew GlissonBusiness Member
Property Manager · Memphis · Member since 2026 · 135 posts · 95 votes
7mo
One angle most people overlook at that price point is buying a lot and building instead of forcing a bad deal.

A lot of lenders will work with you if you have a solid plan, realistic numbers, and a good lot, especially if you’re owner occupying. You often get better layouts, lower long term maintenance, and units that actually pencil instead of compromising on an outdated property.
[email protected]832-477-1007
LPS Short and Long Term Property Management
Website View Page
2 Reply
- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Andrew Glisson thank you this is very interesting to hear.
  0 Reply
Victor SoBusiness Member
Real Estate Agent · Chicago, IL · Member since 2017 · 325 posts · 193 votes
7mo
Quote from @Erick Nunez:

Hello my name is Erick, I posted about my house hacking journey beginning and received tons of great advice. Thank you all for that! It's officially has been a week of looking at properties and man it's exciting and scary. I know Rome wasn't built in a day and I'm patient. Any tips on multi unit properties? What to look for? But mainly any properties that are worth looking at?? 400k is my cieling which put me a small box and I'm trying to stay in the northwest side of Chicago and maybe even melrose park and surrounding suburbs. My area gets bigger and bigger the more I search. Thank you all in advance!
It’ll be difficult to find a multi-unit in the north/northwest side of Chicago in that price range. Another option is to buy a single family room with a lot of rooms and live in one room or basement or attic and rent out the other rooms. I’m a co-living/rent by room investor. Happy to talk through some of the strategies I employ. DM me!
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- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Victor So thank you I have a couple follow up questions. I will dm you
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Ben FernandezBusiness Member
Realtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes
7mo
- Make sure it's separately metered, including a common meter.

- Understand the potential CapEx expenses that will be unique to each subject property by determining the life-left of components that will need repair or replacement in due time.

- Run a cash flow analysis. Be sure the property supports your exit strategy (meaning when you move).

- Understand asset classes and what it means for the location you're choosing.

- Know if the population is increasing, decreasing or has remained flat, where you're buying. Then the whys behind each as applicable.

- Check crime and the trajectory of crime in the area. Use Spot Crime or the crime map on NewsBreak.

Okay, that's all I can think of right now! Good luck! Keep up the good work!
[email protected]717-945-7040
1 Reply
- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Ben Fernandez thank you very much
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Eudith VacioPro Member
Real Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
7mo
Hey @Erick Nunez - that's great to hear, you're definitely in the right spot!
I'll be real with you, the Northwest Side is very popular in the city of Chicago as I'm sure you're aware of already. That price range is going to get you a building that needs work if you're open to that! You can purchase a building for below market value that needs work, put in some sweat equity and force the value of the building. Is that something that you're open to?
1 Reply
- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Eudith Vacio thank you for the advice and honesty I think that is my best bet.
  0 Reply
Danielle Clark
Real Estate Broker · IL · Member since 2026 · 28 posts · 13 votes
7mo
Erick, congrats on getting the search going. That mix of excitement and nerves is completely normal on your first multifamily.

At a 400K ceiling on the northwest side, the key will be flexibility. Are you looking for something mostly turnkey, or are you open to light or even moderate rehab if the numbers justify it? In that price range, especially in stronger northwest pockets, the deals that really make sense usually need some level of work.

I would focus heavily on projected property taxes, realistic rent comps, and the condition of major mechanicals. Make sure you underwrite using what taxes will be after purchase, not the current owners bill. Also pay attention to layout and separation if you are house hacking, since you will be living there.

1 Reply
- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Danielle Clark thank you and I'm hopping for something in the right area with need of tlc. Especially since I'll be house hacking one unit. I plan to take that first year and make it modern and move in ready
  0 Reply
Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
7mo
I house hack a 4 in Roger’s Park and work with a ton of house hack buyers feel free to PM to chat more or any questions. NW areas are solid and may find some 2s within budget, especially if willing to do some work. Portage Park, Belmont Craigin, etc. There is also option of house hacking a 2 or 3br condo with roommates when your budget is limited.
1 Reply
Jarret Jarvis
Real Estate Agent · Chicago · Member since 2021 · 168 posts · 62 votes
7mo
Hey Erick, love your energy! Looking at properties for a week and feeling both excited and nervous is exactly where most investors start.

A bit about me: I own 21 properties, manage a real estate team doing $88M/year in sales, and have helped lots of buyers around your age on BiggerPockets start their investment journey.

Here’s some advice:
- Focus on rents and cash flow, not just purchase price.
- Budget for taxes, insurance, utilities, and maintenance (35–45% of rent is a good starting point).
- Check neighborhoods, rent comps, and vacancy trends.
- Run a pro-forma: rental income, vacancy, expenses, mortgage, make sure it cash flows.
- Your $400k budget works for duplexes; prioritize deal quality over size.
Patience + preparation is key. House hacking early sets you up to scale fast. If you want, I can help you analyze specific listings. You’re in a great position, keep at it!
1 Reply
- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Jarret Jarvis patients plus preparation, check. Thank you for your advice and I will definitely reach out!
  0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
7mo
Quote from @Erick Nunez:

Hello my name is Erick, I posted about my house hacking journey beginning and received tons of great advice. Thank you all for that! It's officially has been a week of looking at properties and man it's exciting and scary. I know Rome wasn't built in a day and I'm patient. Any tips on multi unit properties? What to look for? But mainly any properties that are worth looking at?? 400k is my cieling which put me a small box and I'm trying to stay in the northwest side of Chicago and maybe even melrose park and surrounding suburbs. My area gets bigger and bigger the more I search. Thank you all in advance!

The uglier the property, the more potential it MAY have.
Ugly properties scare off competition.
You just have to be sure you can "cure" the ugly problem.
Most common is properties that need repairs.
- You can buy with a 3% down, FHA 203k mortgage that allows you to roll in repairs.
- FNMA also has a similar program, but requires more down.
Do NOT spread yoursef too thin on location targets!
You want to really know 2-3 neighborhoods, so when a new property pops up, you quickly know if it's a deal or not.
Learn to analyze "backwards".
Start with the projected (conservative) rents, deduct new property taxes and home insurance, vacancy+ tenant nonperformance, maintenance and what you have left is the mortgage payment. Pop that into a calculator at today's rate for a mortgage amount and then add your down payment.
- That is the number you offer or even less! Doesn't matter what the asking price is.
[email protected]248-209-6824
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- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Drew Sygit thank you very much
  0 Reply
Alioune Camara
Realtor · OH · Member since 2026 · 122 posts · 77 votes
7mo
Erick — congrats on taking the first step! I remember that mix of excitement and nerves from my first house hack. Totally normal.

With $400k in the NW Chicago / Melrose Park area, the key is really narrowing what “worth looking at” means. A few quick thoughts:

First, focus on cash flow vs price. Even if a place looks cute, make sure the numbers actually work once you factor in mortgage, taxes, insurance, and potential repairs. Don’t assume rents will magically cover it — verify comps.

Second, check the units themselves. Things like separate utilities, updated mechanicals, solid roofs, and layouts that make renting simple are worth more than cosmetic touches. You don’t want to fix the world after closing.

Third, location matters more than price. Look for areas with steady rental demand — near transit, schools, or major employers. That will keep vacancy low and tenants happy.

Finally, keep your search realistic. $400k limits the options, so be ready to compromise on either unit size or exact location. But if the numbers pencil, a smaller or slightly older building can actually be easier to start with.

Biggest thing: don’t rush. A good deal today beats a “perfect” deal next month.
1 Reply
- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  7mo
  @Alioune Camara thank you very much much for the words of encouragement and advice!
  0 Reply
Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
7mo
Love it @Erick Nunez! Exciting and scary is the name of the game so get used to it!
Given your price point is $400k I highly suggest looking in those suburbs like Melrose Park. For me the most important thing is getting into the game! So if you can find somewhere that you are comfortable with and pay less on your mortgage than you would for rent it's a win.
If you really want Chicago then you likely need will have to go with a 2 unit a look some where are Hermosa, Portage Park, Belmont Garens...
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Erick Nunez
OP
Member since 2026 · 27 posts · 8 votes
7mo
Yes I’m keeping an open mind to melrose and surrounds suburbs. Taxes can get a little crazy.
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Jarret Jarvis
Real Estate Agent · Chicago · Member since 2021 · 168 posts · 62 votes
6mo
Erick, I’ve been there: first week of looking at properties feels like you’re trying to learn a language while someone’s already talking at full speed. I’m a Chicago house hacker myself, do this as a full‑time business, own 21 units, and sold 137 in 2025. A few quick, practical things that actually matter on multi‑units:
- For your budget and area (400K, northwest side + Melrose Park), focus on 2–3 units with:
  - Strong bones (roof, foundation, mechanicals)
  - Room for rent growth (below‑market rents, dated cosmetics)
  - Clear separation between units (separate entrances, utilities, meters)
  - An owner‑occupy option so you can live in‑unit and keep borrowing costs low
- What to watch out for:
  - Parking issues or “we’ll just put a car on the street” arrangements
  - Shared HVAC, shared utilities, or “their own meter but… it’s all run to the same spot” nonsense
  - Overpriced buildings that only work if you aggressively rent up and rehab cheap—force that math to hold conservatively
- For specific “properties worth looking at,” I’d branch your search into:
  - Chicago northwest side: 2–3 units with long‑time tenants under‑rented
  - Melrose Park / Cicero / Forest Park: 2–4 units within blocks of transit where you can raise rents a bit but still cash flow at 400K
If you want, I can send you a super‑short checklist for when you walk each 2–3 unit (what to inspect, what to ask the agent, what to run through in your head before you decide to offer). If you’re serious about closing your first house hack, let me know where you’re actually touring and I’ll help you rank which buildings are worth the time and which ones are cute but not worth the premium.
1 Reply
- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  6mo
  @Jarret Jarvis thank you and I will gladly appreciate the list! I see homes in Austin area and Belmont cragin. There's not a lot of properties at my price range. I even looked in melrose and stone park. Taxes just eat into any cash flow. Thank you again
  0 Reply
Victor SoBusiness Member
Real Estate Agent · Chicago, IL · Member since 2017 · 325 posts · 193 votes
6mo
Quote from @Erick Nunez:

Hello my name is Erick, I posted about my house hacking journey beginning and received tons of great advice. Thank you all for that! It's officially has been a week of looking at properties and man it's exciting and scary. I know Rome wasn't built in a day and I'm patient. Any tips on multi unit properties? What to look for? But mainly any properties that are worth looking at?? 400k is my cieling which put me a small box and I'm trying to stay in the northwest side of Chicago and maybe even melrose park and surrounding suburbs. My area gets bigger and bigger the more I search. Thank you all in advance!
Like you said, at that price point, your options may be limited. Units may be smaller, less rooms, etc. However, I'd consider getting creative on how you can maximize cash flow. Maybe try to find a building with a bonus attic, den, or basement space where you could live and rent out all other spaces. Maybe consider renting by room + STR/MTR. Make sure numbers work as a long-term rental of course. But, having other tools and strategies in your tool belt can help you save more and propel you into your next deal. The first deal isn't supposed to be a home run deal. It's supposed to get you into the game. I've used creative ways over the years through househacking to help me acquire a handful of properties. I'd be happy to share my journey with you. DM me!
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- Erick Nunez
  OP
  Member since 2026 · 27 posts · 8 votes
  6mo
  @Victor So thank you very much I will dm you
  0 Reply

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