Deal Diary: Bronzeville House Hack
I was the buyer's broker on this deal. Congrats @Michael Mayer and thanks for letting me put up this post!
About the deal: I toured this property assuming it was a legal 3 unit as that's how it was listed in the MLS. When speaking with the owner he mentioned the zoning doc showed 4 units which made my eyes light up. The property currently had a basement unit that needed significant work. 2 of the units were turnkey with nice granite kitchens and one of the units needed a relatively mild rehab. Porch and structure were solid.
Bronzeville is a hot gentrifying area right now. What's really cool is that the rent to purchase price ratio is high enough and taxes low enough that 3 and 4 units can often pass the self sufficiency test which enables them to be purchased at 3.5-5% down FHA. This deal was financed through regular FHA 5% down.
Property was listed at $459k and I spoke with owner who said had multiple offers over ask price. I texted Michael 20 minutes after the showing and sent him some videos I took. Sight unseen within an hour we put in an offer well over ask price and ended up locking it down at $495k. Brought a GC in and don't want to post exact financials in case end up flipping it but has a solid margin for either a BRRR or a flip. Michaels goal is to BRRR it. Lots of properties hitting new highs but still deals to be found. I expect the Bronzeville area to continue growing and look forward to seeing the end result of this project.
Below are a few recent comps in the area....
429 E 45th pl - Legal 4 unit similar quality rehab - Sold $670,000 on 10/10/19
3733 S Indiana - Legal 3 unit nice rehab - Sold $650,000 on 9/27/19
Happy investing everyone! Feel free to reach out to me or Michael with any questions.
