My First Deal

[Eric Flatt]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $345,000
Cash invested: $50,000

Two-flat property in the Near West Side neighborhood of Chicago

What made you interested in investing in this type of deal?

It was my first deal! I was looking for a small multi-family for my first investment that I could house-hack.

How did you find this deal and how did you negotiate it?

I worked with an agent and found it through my agent on the MLS. My search took approximately 9 months and I analyzed many properties all over the city of Chicago. I saw this property hit the MLS on the first day and the description indicated it would only be on the market for 4 days. Basically, the seller knew it would be of high interest to investors. It was listed at $310k and everybody knew it was underpriced. I put in a $345k offer and they accepted it!

How did you finance this deal?

I financed it with an FHA loan in 2018 when loan rates were very low.

How did you add value to the deal?

The house was legally a two-flat that had been converted to a single family home (they knocked out a wall). I added the unit-separating wall to re-establish the two flat. I ripped out the old carpet and added hardwood floors in the first unit and new carpet in the second unit. Painted the entire house. Added a brand new fence all around the property. Added a separate W/D to the second unit. Added two new water heaters

What was the outcome?

I lived in the smaller unit and rented out the larger unit and it was actually a success. I lived there for one year and moved away and I was able to rent out the two-flat entirely! It has been occupied with little vacancy ever since and I still own it to this day.

Lessons learned? Challenges?

During my search I was very cautious and this is the only property I made an offer on. There were other properties I could have made an offer but, frankly, I was scared! Since this was my first investment property, I basically learned that I can do this! You simply have to have the courage to go for it!

[Jonathan Klemm]

Ada Boy @Eric Flatt!  Looks like a fantastic deal!

Living in the smaller unit and renting out the bigger one is genius!  

Also, want to call out how patient you were!  Finding the right multifamily property here in Chicago can be very challenging!

When is the next purchase?