Need advice re South Chicago fourplex

4 Replies

Any veteran investor who is familiar with South Chicago and willing to share your expertise? Need some advice regarding our fourplex pls. GC ran off with unfinished code violations that turn out to be more expensive that he estimated. Now we’re stuck with a high rehab loan,  and nowhere near being rent ready. Made a lot of relatively “rookie” mistakes that I now need to clean up. Going back and forth between selling and cutting our losses or getting another loan, which will make our overall loan higher than the property value, to fix and eventually hopefully rent. 😫 Any expert advise would help. 

Get in touch with @mark Ainley he managed a bunch in that area and knows it block by block. 

South Chicago is tough as property value so low it's easy to get upside down. You likely will need to finish rehab as properties are almost given away down there when they need work. The whole markets hot though so once you finish and get it rented out should be able to sell. If you are from out of state I always recommend focus on the A/B areas we have many in chicago that are cashflow positive (less but still positive) and appreciate like crazy. 

Thanks so much for all your replies! 
Property is on Escanaba Ave, 9bed, 4ba, bought it for $60k, spent over $100k with almost full reno inside, new plumbing, new floors, electrical, HVAC, roof, etc, then last year I got a list of code violations that had new issues that I had never seen before, including basement beam and siding repair, fix cracks on the perimeter, fix balcony, etc . I was originally given an additional $20k estimate to get it all done and make the property rent ready, but since that GC disappeared, the estimates that I have received have been $75k or higher! I also want to go after the GC but don’t even know where to start with that. I did have a contract with him. I later found out in the process of trying to track him that he also disappeared  on other projects. And none of the work he did for us even got inspected, he kept saying the inspector rescheduled. 
Will also definitely contact Mark Ailey.

I really appreciate all of you on this thread, grateful for Bigger Pockets!