I am a new investor

Chicago, Illinois
House Hacking
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I am a new investor

Estrella Manjarrez
Member since 2026 · 1 post · 1 vote

Hi everyone,I am a new investor in the Chicago area looking to purchase my first multi-family property (2 to 4 units) using an FHA loan. My strategy is to house hack—living in one unit and renting out the other(s) using the CHA Section 8 program to maximize cash flow. I am currently looking at areas like Garfield Ridge (60638) and West Englewood (60636).Since I will be living next door to my tenants, I want to make sure I screen properly and set up systems correctly from day one. I would love to connect with or get advice from experienced Chicago landlords who are currently doing Section 8.A few quick questions for the group:

  1. How long is the CHA currently taking from RTA submission to the first rent payment deposit?
  2. What are the most common (and unexpected) things CHA inspectors fail properties for during the initial inspection?
  3. For those house hacking Section 8, what boundaries or lease clauses have worked best for you to maintain privacy?

Thanks in advance for any insights, tips, or connections!"

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Crystal SmithPro Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
1mo
Quote from @Estrella Manjarrez:

Hi everyone,I am a new investor in the Chicago area looking to purchase my first multi-family property (2 to 4 units) using an FHA loan. My strategy is to house hack—living in one unit and renting out the other(s) using the CHA Section 8 program to maximize cash flow. I am currently looking at areas like Garfield Ridge (60638) and West Englewood (60636).Since I will be living next door to my tenants, I want to make sure I screen properly and set up systems correctly from day one. I would love to connect with or get advice from experienced Chicago landlords who are currently doing Section 8.A few quick questions for the group:

  1. How long is the CHA currently taking from RTA submission to the first rent payment deposit?
  2. What are the most common (and unexpected) things CHA inspectors fail properties for during the initial inspection?
  3. For those house hacking Section 8, what boundaries or lease clauses have worked best for you to maintain privacy?

Thanks in advance for any insights, tips, or connections!"


My first comment- Ignore the comments from anyone on this thread that questions you living next to a CHA tenants. 

  It should take 5 to 7 business days after RTA process for you to receive your first rent payment. With that said as a government entity sometimes there's no sense of urgency so get use to making daily calls & establish a friendly relationship with someone at the agency. I emphasize friendly.

With regards to what are the most commons (and unexpected things CHA inpsectors fail- I could give you a long response but I recommend you throw your question into an AI tools and your'll get a response that's probably about as good as I can do. So I'll give you how we operate in our business. We no longer visit properties ourselves when making offers unless we are visting a property on the client side. When we purchase for ourselves we send someone that works for us to take a video and pictures of the property. We also download data from the Chicago Code violation side for the property. Then we throw the inspection report, the pictures, the videos... into one of our AI tools and request a report based on what the AI can see of everything and ask the question- What will not pass CHA inspection rules. We started testing this last year & it was 99% on the money. We then use the results to develop either a scope of work for a contractor or handiman or we use it to help us with an offer. Please note that we don't use any of the free AI tools.

Regarding maintaining privacy- We do not use lease clauses for privacy. We do not let the tenants know that we are the owner. We set up a management company under an LLC and have payment of the rent go to that LLC. If we are using a 3rd party management company then payment goes to that management company. We do not use our personal phone number for any maintenance or discussion on leases. We may set up a special phone number for maintenance that forwards calls to handiman services. You can establish a relationships with a company like My Handyman express or Altus Property Partners (They do property management but they have a service that only deals with maintenance requests.} If you want to maintain privacy then you cannot be the one showing the apartments to tenants- It has to be a 3rd party. If you want to maintain privacy then you can't be the one that deals with tenant evictions- It must be a 3rd party.

Bottom line regarding privacy- The tenants & potential tenants have to see you as someone that just lives in the building & they are dealing with someone other than you for everything in the building. 

312-681-7487
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  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    1mo

    Welcome to the community!! I'm commenting for visibility for Chicago as I have not used section 8. 

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1mo
    Quote from @Estrella Manjarrez:

    Hi everyone,I am a new investor in the Chicago area looking to purchase my first multi-family property (2 to 4 units) using an FHA loan. My strategy is to house hack—living in one unit and renting out the other(s) using the CHA Section 8 program to maximize cash flow. I am currently looking at areas like Garfield Ridge (60638) and West Englewood (60636).Since I will be living next door to my tenants, I want to make sure I screen properly and set up systems correctly from day one. I would love to connect with or get advice from experienced Chicago landlords who are currently doing Section 8.A few quick questions for the group:

    1. How long is the CHA currently taking from RTA submission to the first rent payment deposit?
    2. What are the most common (and unexpected) things CHA inspectors fail properties for during the initial inspection?
    3. For those house hacking Section 8, what boundaries or lease clauses have worked best for you to maintain privacy?

    Thanks in advance for any insights, tips, or connections!"


     You want to live next to a S8 tennat?

    Good luck!

    Why wouldn't you want to pursue MTR or STR for even higher rental income?

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  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    1mo

    What's up @Estrella Manjarrez - Welcome to Chicago BiggerPockets Forums and congrats on your first post!  

    It's always challenging getting up and going if you can use an FHA loan that is a great way to get it in with a low down payment.

    We've a had trouble finding a qualified CHA tenant for some of our listings in Greater Grand Crossing.  You still have to be sure to vet your tenants even if they have a voucher.

    1.  I am not sure how long it's currently taking

    2.  Just make sure you have a safe, sanitary, and secure property.  CHA will get you for any potential slip, trips, and fall hazards, paint, drywall, etc.  You really just need to have a decent place and honestly I think it's helpful. 

    3.  I can comment on house hacking and using CHA

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1mo

    Estrella, house hacking a 2–4 unit with an FHA loan can be a great first move, especially since you'll be living there and learning the landlord side firsthand.

    For the CHA timeline, I wouldn’t build your budget around a fixed number of days from RTA submission to the first payment. The unit still has to clear the paperwork, rent-reasonableness review, inspection, and lease/HAP-contract process. Once everything is active, CHA generally issues regular housing-assistance payments on the first of the month, with certain adjusted or prorated payments processed around the 15th.

    Before the inspection, I’d go through the property like an inspector would. Test every smoke and carbon-monoxide detector, outlet, window, door lock, faucet, toilet, appliance, handrail, and heating system. Peeling paint, leaks, exposed wiring, missing covers, trip hazards, and windows that don’t open or lock properly are the kinds of small issues that can delay approval. CHA’s current inspection materials are the best checklist to follow before scheduling.

    Since you’ll live next door, clear boundaries matter. Use the same written lease, screening process, maintenance procedure, and communication rules you would use if you lived somewhere else. Avoid informal agreements just because you share the building.

    Also, keep your finances separate from day one. With a house hack, part of the property is personal and part is rental, so repairs, utilities, interest, insurance, and depreciation may need to be divided between the two portions.

    Happy to connect!

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  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 148 posts · 54 votes
    1mo

    House hacking a 2-4 unit with an FHA loan is one of the better ways to get started, especially since you'll be living on-site and can keep a close eye on the property. Since you're planning to use Section 8, I'd focus just as much on making sure the property is inspection-ready before submitting the RTA as I would on finding tenants. Small repair items can sometimes create delays that push back the first rent payment.

    Since you’ll be living next door, having clear expectations from the beginning is also important. A well-written lease, consistent communication, and treating the property as a business tend to make a bigger difference than adding a lot of special clauses. Setting those boundaries early usually makes life much easier over the long run.

    I’d also make sure to budget for a few months of reserves, even with voucher tenants, so you’re not relying on rent arriving by a specific date.

    For those already working with CHA, have you found the inspection timeline and first payment process to be fairly consistent lately, or has it been varying by case?

    0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1mo

    @Estrella Manjarrez

    The thing is that section 8 house hacking could be really successful provided that one has realistic expectations and the right systems in place. It would be better if one made sure that everything was done in terms of being ready for an inspection, proper tenant screening, and communication from the first day on.

    Good luck!

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  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    1mo
    Quote from @Estrella Manjarrez:

    Hi everyone,I am a new investor in the Chicago area looking to purchase my first multi-family property (2 to 4 units) using an FHA loan. My strategy is to house hack—living in one unit and renting out the other(s) using the CHA Section 8 program to maximize cash flow. I am currently looking at areas like Garfield Ridge (60638) and West Englewood (60636).Since I will be living next door to my tenants, I want to make sure I screen properly and set up systems correctly from day one. I would love to connect with or get advice from experienced Chicago landlords who are currently doing Section 8.A few quick questions for the group:

    1. How long is the CHA currently taking from RTA submission to the first rent payment deposit?
    2. What are the most common (and unexpected) things CHA inspectors fail properties for during the initial inspection?
    3. For those house hacking Section 8, what boundaries or lease clauses have worked best for you to maintain privacy?

    Thanks in advance for any insights, tips, or connections!"


    My first comment- Ignore the comments from anyone on this thread that questions you living next to a CHA tenants. 

      It should take 5 to 7 business days after RTA process for you to receive your first rent payment. With that said as a government entity sometimes there's no sense of urgency so get use to making daily calls & establish a friendly relationship with someone at the agency. I emphasize friendly.

    With regards to what are the most commons (and unexpected things CHA inpsectors fail- I could give you a long response but I recommend you throw your question into an AI tools and your'll get a response that's probably about as good as I can do. So I'll give you how we operate in our business. We no longer visit properties ourselves when making offers unless we are visting a property on the client side. When we purchase for ourselves we send someone that works for us to take a video and pictures of the property. We also download data from the Chicago Code violation side for the property. Then we throw the inspection report, the pictures, the videos... into one of our AI tools and request a report based on what the AI can see of everything and ask the question- What will not pass CHA inspection rules. We started testing this last year & it was 99% on the money. We then use the results to develop either a scope of work for a contractor or handiman or we use it to help us with an offer. Please note that we don't use any of the free AI tools.

    Regarding maintaining privacy- We do not use lease clauses for privacy. We do not let the tenants know that we are the owner. We set up a management company under an LLC and have payment of the rent go to that LLC. If we are using a 3rd party management company then payment goes to that management company. We do not use our personal phone number for any maintenance or discussion on leases. We may set up a special phone number for maintenance that forwards calls to handiman services. You can establish a relationships with a company like My Handyman express or Altus Property Partners (They do property management but they have a service that only deals with maintenance requests.} If you want to maintain privacy then you cannot be the one showing the apartments to tenants- It has to be a 3rd party. If you want to maintain privacy then you can't be the one that deals with tenant evictions- It must be a 3rd party.

    Bottom line regarding privacy- The tenants & potential tenants have to see you as someone that just lives in the building & they are dealing with someone other than you for everything in the building. 

    312-681-7487
    1Reply
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