New to Chicago Real Estate - Looking to House Hack!

3 Replies

Hey everyone! 

My name is Ben Cohen and i'm new to the Chicago area. I've recently gotten extremely excited about real estate, listened to a majority of the podcasts/read a book or two and have attended a few REI events to make some amazing connections!

My two main goals are to begin flipping houses for the capital and do a BRRRR's / house hack a property for the cash flow. My focus for the flips are single family homes and my focus for the BRRRR's are multi-family properties.

With regards to cash I have quite a bit saved up, so getting a loan won't be an issue, the only question I have now is where does the market in Chicago look best?! I keep discussing this vision of mine with realtors who immediately ask me which area's i'm most interested in. As I am new to Chicago I was wondering if anyone had any recommendations / suggestions about areas where you see upside potential (looking for properties ranging from $80-$250k). Please let me know if you have any recommendations! 

welcome @Benjamin Cohen

There are many sub-markets in chicago, not even including the suburbs. If I were you, keep networking in your local REI, and talk to different realtors.

There are investors in every market. You just need to find out where the cheapest properties available on the MLS are, and figure out the ARV of rehabbed properties in the same area, and where the spread is going to be.

Hi Ben,

Welcome to Chicago!

It's exciting that you are getting into the real estate arena. As for locations on where to buy, there are many different areas. Are you looking to buy something close to your work? If so, that would help narrow down locations that have the most potemtial. Otherwise,  you have Logan Square,  West Bucktown, areas of Humboldt Park, Avondale, Portage Park, Jefferson Park.

You'll have a hard time finding anything under $300,000 right now with much value-add in the hottest areas on the North and Northwest side. I would recommend looking at West Pilsen or Little Village as well as some of the near south side areas like Bridgeport or Bronzeville. 

The ideal building for you would be a two flat with an illegal attic apartment, that's how I got my start and it provides optimal rental income while you live in the illegal apartment and don't report yourself to the city!

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