Flip in Chicago

[Matthew Bernal]

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Chicago.

Purchase price: $675,000
Cash invested: $120,000
Sale price: $1,090,000

I purchased a two-unit property in the Lakeview neighborhood of Chicago, IL, for $675,000. I converted it into a single-family home by combining the two units and adding finishing touches. I spent $130,000 on the conversion and rehab, which took around 10 months. The final sale price was $1,090,000, which netted around $160,000.

What made you interested in investing in this type of deal?

There was lots of opportunity to convert multifamily homes into single-family homes in the Chicago area. I noticed the trend and decided to capitalize.

How did you find this deal and how did you negotiate it?

I found the deal by using specific search prompts on Zillow and Redfin. The negotiations were pretty simple, as the sellers had failed to get a buyer in 9 months during the hottest market in history.

How did you finance this deal?

Hard money and private money lenders were key in financing this project.

How did you add value to the deal?

I developed my own underwriting process, leveraged my skills in negotiation, and put together a solid team.

What was the outcome?

The deal wound up being quite profitable. Everyone was happy in the end!

Lessons learned? Challenges?

I learned the hurdles that come with doing projects out of state and how to overcome them. With the right team, anything is possible.