Moving to Chicago and want to Invest
Hello,
So my partner and I are moving to Chicago. For context, We have 3 doors currently in Michigan (2 rented out and 1 we are living in with the intentions to rent once we move). I am a travel nurse and relocating to take on a full time position in new role and my partner has a tax accounting internship for the summer and then plans to transition into a part time role afterwards. We have been looking at investing in the multifamily market of Chicago with the goal of acquiring a triplex or quad. I have a decent amount of capital saved up from my W2 approx 30K currently. I was thinking of using the FHA strategy since I would quality to use the loan product due to me relocating. After obtaining the property we live in one unit and rent the other two units out by the room. I guess my question is do you guys see any critiques to this strategy? What are some neighborhood or areas we should focus our market research in on? Have you invested in the Chicago market?
Appreciate any tips and insight during this transition!
Most Popular Reply
Congratulations on your new role and welcome to Chicago! I made that move from Michigan 16 years ago, so I understand the adjustment that's coming. Buying a 3-4 unit building with a 5% loan may be doable with 30k, but you will be limited to certain areas of the city. FHA is unlikely to work for a 3- or 4-flat due to the Self-Sufficiency Rental Income rule. Don't discount the 2-flats though, especially if it has a non-conforming unit. There are a lot of those and they've been appreciating rapidly the last few years, and with your numbers it'll open you up to more neighborhoods. My team specializes in mult-units and house hacking (we're all house hackers!), so feel free to reach out if you want to go over some scenarios.