Design questions about purchasing a gut rehab w/ 203k

Chicago, IL · Member since 2017 · 78 posts · 10 votes

I'm looking to purchase a 3 unit property in Chicago that's a full gut rehab. Each unit is a 4 bedroom 1-1.5 bath. The property is currently gutted to the studs. I'm wondering, what should my plans be in terms of figuring out what size to make the rooms, bathroom, kitchen, etc? I would assume the GC would help decide those things but if he asks what size/layout I'd like everything to be, I wouldn't have a clue what to tell him. Should I look to hire a designer/architect for this? Or find a GC who has experience with creating the layouts for properties?

I've done various research on rehab loans but there seems to be very little information on this specific thing. This will be a live-in house hack, and my first property purchase.

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Brie SchmidtBusiness Member

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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes

Originally posted by @Byron W.:

I've done various research on rehab loans but there seems to be very little information on this specific thing. This will be a live-in house hack, and my first property purchase.

You will have to hire an architect to do the plans. Make sure your feasibility consultant gives you a realistic ballpark of the project. I had clients looking to do a gut on a legal 3 unit and we had 3 bid and couldn't get it under $300k so we had to back out because we were too far above the loan limit, and that wasn't even doing exterior work

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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
8y
Originally posted by @Byron W.:

I'm looking to purchase a 3 unit property in Chicago that's a full gut rehab. Each unit is a 4 bedroom 1-1.5 bath. The property is currently gutted to the studs. I'm wondering, what should my plans be in terms of figuring out what size to make the rooms, bathroom, kitchen, etc? I would assume the GC would help decide those things but if he asks what size/layout I'd like everything to be, I wouldn't have a clue what to tell him. Should I look to hire a designer/architect for this? Or find a GC who has experience with creating the layouts for properties?
I've done various research on rehab loans but there seems to be very little information on this specific thing. This will be a live-in house hack, and my first property purchase.
You will have to hire an architect to do the plans. Make sure your feasibility consultant gives you a realistic ballpark of the project. I had clients looking to do a gut on a legal 3 unit and we had 3 bid and couldn't get it under $300k so we had to back out because we were too far above the loan limit, and that wasn't even doing exterior work
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Jeff Burdick
Investor · Chicago, IL · Member since 2016 · 515 posts · 247 votes
8y
Originally posted by @Byron W.:

I'm looking to purchase a 3 unit property in Chicago that's a full gut rehab. Each unit is a 4 bedroom 1-1.5 bath. The property is currently gutted to the studs. I'm wondering, what should my plans be in terms of figuring out what size to make the rooms, bathroom, kitchen, etc? I would assume the GC would help decide those things but if he asks what size/layout I'd like everything to be, I wouldn't have a clue what to tell him. Should I look to hire a designer/architect for this? Or find a GC who has experience with creating the layouts for properties?
I've done various research on rehab loans but there seems to be very little information on this specific thing. This will be a live-in house hack, and my first property purchase.
For big structural changes, things like moving walls and redoing the floor plan, you'll need an architect to draw up plans to make sure that everything is safe and up to code.
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Jared W SmithBusiness Member
Architect · Westchester County, NY · Member since 2018 · 682 posts · 476 votes
8y
Originally posted by @Byron W.:

I'm looking to purchase a 3 unit property in Chicago that's a full gut rehab. Each unit is a 4 bedroom 1-1.5 bath. The property is currently gutted to the studs. I'm wondering, what should my plans be in terms of figuring out what size to make the rooms, bathroom, kitchen, etc? I would assume the GC would help decide those things but if he asks what size/layout I'd like everything to be, I wouldn't have a clue what to tell him. Should I look to hire a designer/architect for this? Or find a GC who has experience with creating the layouts for properties?
I've done various research on rehab loans but there seems to be very little information on this specific thing. This will be a live-in house hack, and my first property purchase.
Unless you know of a very good GC, provided by someone you know well and knows construction, I would not recommend this route. As an architect myself, this is what we do- space planning. Creating an efficient design aids in the comfort of your tenants. Get a local architect on board. (Also look at what permits are required. You may need an architect/engineer anyway.)
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