Chicago House Hacking

[Brandon Gates]

Hello everyone my name is Brandon. I am currently in the early stages of finding a house hack property in the Chicagoland area. I have already been in contact with a lender and agent through connections that I met through BiggerPockets. A little it about my situation. 

My approval amount for a duplex will be between $360 to low $400s

Triplex $450 to low $500s depending

I have been looking in Avondale, Hermosa, Logan Square, Jefferson Park, Portage Park, Albany Park, and have even checked out Berwyn and Lagrange. The numbers above are all subject to change depending on rental incomes.

I am getting closer to finding something that works and have been analyzing numbers daily. Any tips or advice for a first time home buyer out in Chicago? Also, is there an area that you feel will appreciate better than others?

Would love to talk and connect with the Chicago BP Community!

[John Warren]

@Brandon Gates it sounds like you have some solid areas in your sites. The big thing to keep in mind if you jump to the suburbs is the higher tax rates in the suburbs versus the city. Keep an eye on assessed values on https://www.cookcountyproperty... They have a tax calculator on there. The tax rate in Berwyn is something like 14% most years, so if you are looking at a Chicago property with 6.8% you can be taken off guard. A lot of agents don't mention this because it is easier to sell these suburban deals if people don't think about how the expenses will adjust year 2. 

As far as appreciation, I think all of the areas you are looking in will have a similar long term outlook. All areas of Chicago are extremely competitive, especially if the deal makes sense which @Tom Shallcross referenced. When a deal makes sense,  you normally have about a 1/2 a day to react and get a showing set up so be ready to move fast.