Flipping deal in Chicago

[Zarinah Burford]

Our first flip. Brought a property for 86k rehab about 120k. Homes selling in the area for 320-370k.

I’m financing, my brother is and agent/wholesaler. We are splitting 50/50. With covid, acquiring permits in Chicago maybe slow- worst case scenario way may not sell for 8months! Sounds like a good deal? Has covid slowed down acquiring permits?

[Tom Shallcross]

Chose a self-cert architect (like @Samuel Pavlovcik or @Prashanth Mahakali) to minimize the headaches and turn time in Chicago. 

Also, when calculating your holding costs, 8 months is plausible, not worst case. 

Month 1 drawings/awaiting permit to be issued

Months 2-4 - rehab (90 days for 120k in work), make sure to account for inspections 

Month 5 1 week touch-up, photos and then list

Month 6 under contract(assumes it takes 30 days to go under contract from original list) and then buyer needs 45 days to close which brings you to middle of month 7.

Each project is different and you can shave a few weeks here and there but that's a pretty realistic timeline. Bottom line it's gonna take 6-9 months close-to-close.