Just completed BRRR on Chicago's Southside with Chicago Housing Authority Tenants (CHA). 100% of my rent is direct deposited by the City of Chicago/federal section 8 program each month. People like to shy away from these deals but I come from there commercial brokerage world were the tenant credit dictates cap rates and value, my view is that the CHA is more likely to pay every single month (and therefore stronger credit) than a market tenant in a high end neighborhood like River North or Goldcoast. Details below!

2 Bed 1 Bath Brick Ranch in Roseland Neighborhood 

Acquisition Price: $15,700 at auction

Soft Costs: $1,500

Rehab $25,500

Total Capital $42,200

Rent $1,058 per month

Expense and Repair Reserves $445 per month

NOI $7,353

Cap Rate: 17.43%

ARV $95,000

Refinance with 55% LTV and pull out original capital