Chicago, IL · Member since 2021 · 39 posts · 9 votes
Hello everyone, I'm a new investor looking to expand my real estate portfolio in the Chicago south suburbs, preferably Calumet City, with a focus on section 8 rentals. Do you have any advice that would be useful for growing and scaling my portfolio in Calumet City? Specifically, should I focus on using hard money lenders or bank financing when doing BRRRR deals?
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
7mo
Section 8 in south suburbs can be tricky - I'd honestly connect with local property managers first before even picking financing. They'll tell you which streets actually work and what rents look like in reality. Most people jump straight to the money part but those PM relationships are gold. You talking to any managers down there yet?
Real Estate Agent · Los Angeles, United States · Member since 2021 · 392 posts · 162 votes
3mo
Bo's point about talking to PMs first is the right starting place. Section 8 in south suburbs varies block to block and the wrong street can mean chronically high turnover, damage cycles, and inspection delays that kill your BRRRR velocity more than the financing structure does.
On hard money vs. bank: for BRRRR, hard money is the right tool for acquisition and rehab because no conventional lender will touch a distressed property. The exit is either DSCR or portfolio refinance after the property is stabilized. Hard money rates are high (10-13% typical) but they're short term — if your ARV underwriting is solid and your rehab scope is accurate, the cost is manageable. Where people get into trouble is optimistic ARV estimates and scope creep that extends the holding period.
Your first BRRRR should be conservative — buy something that works even if you can't pull all your cash out. The goal is to learn the process without being wiped out by a bad estimate. Feel free to DM if you want to talk through how to evaluate a specific deal.