All Forum Posts by: Ebe Chinweze

Hi Chris, Thanks! Yes, I am fully appreciating that in this market. Currently, we are looking for cash flowing multifamilies 5-10 units, with at least an 8 cap. Value add would be preferable also. Tough for the Colorado area so we are looking outside the state. Thanks for reaching out. 

Hi! Thanks the greystone was located in the Bronzeville neighborhood (a neighborhood located north of Hyde Park and south of South Loop). Hope that helps! Ebe

Thanks! We are hoping it does! 

Thanks! 

Thanks! We are now looking for other cash flowing 5-10 unit apartments to purchase. We are living in Denver but looking in the Midwest and southeast for deals. Right now we are exploring the Des Moines and Waterloo Iowa markets to learn how to do this at a distance with lower cost properties if that makes sense. Also keeping an eye out for anything that meets our standards in Colorado. 

Also, the agent who helped us buy the SFR was a random agent and not from BP. By the time we bought the 3 flat I held a real estate license in IL strictly to have access to properties and the MLS on our terms. So I was the acting "agent" for the buying and selling of the three flat which also helped in the negotiation of purchase. Ebe

Thanks! At the time these properties were on the MLS. They were not in really hot neighborhoods so there was not too much competition for them. That being said, they both had multiple offers on them. On the 3 flat, I think our bigger down payment and financing plan helped the seller feel like we were most likely to close vs others who had FHA financing. Market was not nearly as hot as it is now at the time we bought in 2013 and 2014. Hope that helps! Ebe

Investment Info:

Single-family residence buy & hold investment in Chicago.

Purchase price: $54,900
Cash invested: $13,725
Sale price: $68,000

Our first investment was in a single family home in a working class neighborhood on Chicago's south side. This SFR was bank owned at the time of our purchase. We had 2 different renters during the time that we owned it. We ultimately sold the home when we moved from Chicago in 2018.

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

Just jumping in, house was inexpensive and in a good area.

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

We worked with a broker who helped us find it. There was limited negotiation as this property was bank owned. We were one of three offers for the house. Highest and best situation.

How did you finance this deal?

Conventional loan with 25% down.

How did you add value to the deal?

N/A it was mostly done.

What was the outcome?

We rented it to two different renters over the 5 years of ownership and sold at a slightly higher price than we bought it for.

Lessons learned? Challenges?

Make sure to not outbid yourself with these types of deals, especially in low appreciating markets.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $375,000
Cash invested: $25,000
Sale price: $475,000

We house hacked a three unit in Chicago where we finished the project by adding the appliances and by beautifying the landscaping in the front and back of the property. We self-managed the property. We sold the the property after moving out of the area to Denver.

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

Each unit was large enough for us to house hack (3/2) as my husband and I were expecting our first child.

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

We found it on the MLS. We negotiated with the seller to come down on price d/t us having to finish the project by adding appliances. We were more attractive buyers because we were able to put down 20%.

How did you finance this deal?

Conventional owner occupied loan.

How did you add value to the deal?

Adding the appliances, and updating the landscaping.

What was the outcome?

We sold it for $100K more than what we paid for it. The buyer's appraisal came in under his initial offer to us, which was a bummer for us. We however were able to meet in the middle for the difference.

Lessons learned? Challenges?

It's great to house hack but we should have treated it more like a business. It is a challenge to live with others but so worth it!

We are under contract for our first apartment building, it's an 11 unit on the south side...Whoo Hoo!!  We are looking for an apartment building inspector who 1, works on the south side and 2, great at inspecting apartments.  Easy peasy, right??!!  Thanks for any guidance you can give us!  -Ebe