Contractor Recommendations For 6 Family Rehab Work

7 Replies | Chicago, Illinois

Closing on a 6 family unit in Chi-town.  I am looking for a contractor who has worked with the CIC (planning on using them for financing) and does not mind guiding a newbie through the process.   Thanks for the help.

Originally posted by @Jen V. :

Hey @Calvin Lipscomb (Brooklyn represent!) -- Where exactly in Chicago (neighborhood)? 

Hey, transplanted Brooklynite?  I purchased in the South Shore area in the E 70s.  Waiting to finalize contracts.  

Translplanted indeed! 

I have a great contact on northside (lives in Jefferson Park — works across Lakeview, lincoln Park, Uptown, edgewater, irving Park, Albany Park, etc) but probably many closer right guys for this oppty. Very best wishes in your deal! 

@Calvin Lipscomb you might want to pay very close attention to the blocks of south shore. Some areas are rough. It’s really a block by block situation. Most 5+ units in that area I see are in high crime areas. Unless you don’t care about that.....Is this 6 unit section 8 tenants? What’s your cash on cash return? Is it already rented?

Do you have a rehab estimation? Many MFHs on the south side of Chicago and south suburbs that are available have been junk. I don’t want to burst your bubble or anyone else bubble but I’m just being honest. It’s a reason why when you look at price history and DOM on Zillow and see it's been sitting awhile or for the past six months it’s said pending atleast 4x, because we are in a sellers market right now so something that Is really good will be gone fast! I am always looking for opportunities and the truth is MFHs in Chicago is  becoming so rare(the good ones)  I’m not saying they are all gone but the demand has definitely exceeded the supply for now.

Usually the numbers don't work out good if you do catch one. It's just been my pattern the past few ones I came across. I came across a 4 unit in bronzeville last month and the CCR was 7%.......the building had a ton of violations on it and needed a TON of work in rehab! One of the units wasn't zoned as a official unit, pulling permits, Major plumbing issues, electrical had to be rewired, there were only 3 electric and gas meters, all 4 kitchens and bathrooms needed to be gutted. Tons of landscaping. All new flooring on all levels. The minimum rehab cost of this would have been 280k......I can only imagine how something in Lincoln Park, Logan Square or something would be. The CCR would be something like Iike 3% I would say look into northwest Indiana but it's just as tough to find good stuff in that market. Let's hope these banks start releasing some of these homes off their books soon.

My name is Nikita and I am a local real estate investor and consultant. I am very familiar with CIC. I have licensed contractors on my team who has years of experience. Call me. Let’s set up something.
Nikita King.

Originally posted by @Elbert D. :

@Calvin Lipscomb you might want to pay very close attention to the blocks of south shore. Some areas are rough. It’s really a block by block situation. Most 5+ units in that area I see are in high crime areas. Unless you don’t care about that.....Is this 6 unit section 8 tenants? What’s your cash on cash return? Is it already rented?

Do you have a rehab estimation? Many MFHs on the south side of Chicago and south suburbs that are available have been junk. I don’t want to burst your bubble or anyone else bubble but I’m just being honest. It’s a reason why when you look at price history and DOM on Zillow and see it's been sitting awhile or for the past six months it’s said pending atleast 4x, because we are in a sellers market right now so something that Is really good will be gone fast! I am always looking for opportunities and the truth is MFHs in Chicago is  becoming so rare(the good ones)  I’m not saying they are all gone but the demand has definitely exceeded the supply for now.

Usually the numbers don't work out good if you do catch one. It's just been my pattern the past few ones I came across. I came across a 4 unit in bronzeville last month and the CCR was 7%.......the building had a ton of violations on it and needed a TON of work in rehab! One of the units wasn't zoned as a official unit, pulling permits, Major plumbing issues, electrical had to be rewired, there were only 3 electric and gas meters, all 4 kitchens and bathrooms needed to be gutted. Tons of landscaping. All new flooring on all levels. The minimum rehab cost of this would have been 280k......I can only imagine how something in Lincoln Park, Logan Square or something would be. The CCR would be something like Iike 3% I would say look into northwest Indiana but it's just as tough to find good stuff in that market. Let's hope these banks start releasing some of these homes off their books soon.

 Thanks for your input. 

My deal fell apart.  The seller asked me to FLY to Chicago.   I even documented proof of funds for the entire deal.  OMG.   I have another offer in on a different property.  No real renovation needed.  Wish me luck.  Thanks for your responses and support.  Trying hard to get my first deal done for my group.