Recent Chicago Rental Rehab Completed

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Recent Chicago Rental Rehab Completed

Christopher Malone
Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes

I want to share a few photos of a recently completed 2/1 SFR rehab in Chicago thanks to BP.

Hard Money Lender, General Contractor, Friend/Mentor were all thanks to BiggerPockets!

Before Photos

After Photos

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Dorothy Wulf
Chicago, IL · Member since 2016 · 165 posts · 49 votes
9y

Congratulations!

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  • John Moon
    Palpark, NJ · Member since 2016 · 69 posts · 11 votes
    9y

    Congrats on taking action! @Christopher Malone 

    Could you share what color (paint) you used for the walls? Where did you find the doors? And what finishes did you use in the bathroom?


    Thanks!

    0Reply
  • Christopher Malone
    OP
    Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes
    9y

    @Eric Slater - You do have to attend a CHA meeting for landlords to get an intorduction to the program, which is required for all first time CHA landlords. Besides that, you would have to be able to pass an inspection. 

    Here is how the program works, HUD and CHA (Chicago Housing Authority) enter into a agreement for funding and administration of the program. The applicant signs a voucher with CHA and becomes a voucher holder. CHA and the owner enter into a HAP (Housing Assistance Payment) agreement to establish what the subsidized payments will be. The owner and voucher holder enter into a lease which is no different than you would a non subsidized tenant, and you collect a a portion or majority of your rent from CHA on the 1st of every month and the remaining from your tenant which should also be the 1st of every month.

    0Reply
  • Christopher Malone
    OP
    Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes
    9y

    @Timothy Riley - The 2 sump pumps definitely had us scratching our heads in there, but made it work and sealed the 3rd additional catch basin. lol I'm glad that you were still able to find success when the market turned. If you have pictures of how it was before you left, please post them, that would be cool to see. 

    Thanks

    0Reply
  • Eric Slater
    Accountant · Atlanta, GA · Member since 2014 · 9 posts · 0 votes
    9y

    @Christopher Malone thanks for the response. I really appreciate it and that is very helpful information. I've been curious about Section 8 properties, particularly in my market in Atlanta, GA. I'm working on acquiring my first property, but I am exploring all my options first.

    0Reply
  • Christopher Malone
    OP
    Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes
    9y

    @John Moon - Paint color is Navajo White (Sherwin-Williams), Doors were purchased at Home Depot, Finishes in the bathroom were just White semi-gloss paint for the walls, Tile that was on clearance in Home Depot, Pedestal Sink was reused. Tub, Mirror, Light Fixture, Toilet, etc. where also all purchased at Home Depot. I also put door stoppers on all of the doors to prevent the walls from getting damaged. I bought those at Home Depot as well.

    0Reply
  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    @Eric Slater - The official term for SEC is the "housing choice voucher" program. The way it works is the tenant with a voucher chooses your house and then you submit a package of paperwork to SEC 8 to see if they will pay your rent amount.  Once all that gets worked out they come inspect.  It's a pretty simple inspection. They really are only looking for safety issues than any responsible landlord would want to have right anyways.  This is a very simplified explaination. If you search BP you will find many detailed explaination of the process.

    757-472-2547
    0Reply
  • Eric Slater
    Accountant · Atlanta, GA · Member since 2014 · 9 posts · 0 votes
    9y

    @Patti Robertson Thanks for sharing this list and providing some more details about SEC 8 housing. This is great information. I will definitely search more on BP to learn more.

    0Reply
  • Edouard Pierre
    Chicago, IL · Member since 2015 · 72 posts · 12 votes
    9y

    @Christopher Malone Good work and happy to see you held back a bit on the rehab. I've seen many over-rehab for the area (not sure where this is in Chicago) and usually backfires on them when it comes to the cashflow. 

    In the last 3 months I've closed on a 3-flat and 7-unit multifamily building. If you're looking for anything else or need anything feel free to reach out. I'm a broker with Keller Williams in the city and have been working very closely with investors, off-market property brokers, and creative finance lenders. Good work! 

    0Reply
  • Monty Nafoosi
    Bountiful, UT · Member since 2017 · 1 post · 0 votes
    9y

    Property taxes too high in Illinois

    0Reply
  • Joe Cantanzriti
    Rental Property Investor · Chicago, IL · Member since 2014 · 132 posts · 74 votes
    9y

    @Monty Nafoosi   So true.... but still lots of opportunity here!

    0Reply
  • Leo Ferreras
    Real Estate Investor · Chicago, IL · Member since 2017 · 23 posts · 3 votes
    9y
    Christopher M. Good job! Hope your investment starts cash flowing soon.
    0Reply
  • Scott Walker
    Investor · Maplewood, NJ · Member since 2016 · 23 posts · 4 votes
    9y

    Sitting on the edge of my seat Following your every word. Great Job!!!! I only hope my deals turn out as smooth. I'm in Jersey and presently looking. Again Graat Job!!! Thanks for sharing and motivating.

    0Reply
  • Christopher Malone
    OP
    Investor · Chicago, IL · Member since 2014 · 179 posts · 122 votes
    9y

    @Scott Walker

    Thank you! As a quick update, I will soon be closing on a cash out refinance at a 75% LTV, 30yrs, 4.5% Interest. The home appraised at 100K which would pay for my hard money rehab loan and give me all of my money back and then some. This was a successful BRRRR strategy rental.

    Special shout out to @Mark Ainley and the GC Realty team for the comps in the area that supported the 100K appraisal.  

    2Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    BAM @Christopher Malone   Congrats!

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61078 Reviews
    WebsiteView Page
    0Reply
  • Waverley Mosley
    Investor · Chesapeake, VA · Member since 2017 · 10 posts · 2 votes
    9y

    Good Job Chris buddy

    0Reply
  • Jake Clampitt
    Real Estate Agent · Chicago, IL · Member since 2017 · 6 posts · 2 votes
    9y

    Great job, looks great! Congrats!

    0Reply
  • Kerry Boyle
    Lender · Bethesda MD · Member since 2017 · 283 posts · 123 votes
    9y

    Nice rehab!

    0Reply
  • Robin Boyer
    Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
    9y

    @Christopher Malone I have been looking at these houses in Chicago as well what kind of neighborhood is this House in? I'm learning and becoming a landlord new investor and I'm trying to learn the ropes those numbers are amazing. Must be a nice neighborhood! This kinda shows The people that didn't want to buy the $30,000 houses that they are worth it if you're willing to put in the work in time! I'm addicted to real estate now I think about is real estate I read about real estate every day.

    0Reply
  • Account Closed
    Member since 2018 · 6 posts · 0 votes
    7y
    @Eric Slater there is no such thing as section 8 properties. Section 8 refers to how the tenant will pay the rent. It’s a program. Check your state/city for local guidelines.
    0Reply
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