All Forum Posts by: Meera Lakhavani

Hi BP Friends!

I am close to starting my first rehab with FHA 203k! My offer has not been accepted yet but I am hoping for the best.

The property is a zoned 2-flat with illegal third attic unit. I think we can remove the stove from the attic to make this FHA compliant.

I actually have not SEEN the inside of the property yet because it is nearly impossible to get a showing (uncooperative month to month tenants, even the seller's agent has not seen the inside yet) so I am assuming the worst and anticipating a full gut. 

The list price is 385k, and I have offered 355k. Given the FHA limit of 468k, I am hoping I will end up with about 100k for renovation. 15% of this reno cost would be set aside as contingency fund to comply with FHA reno regulations. So basically I would have to try to do a gut for 85k on a house BUILT IN 1880!

I know my inspection and contractor quotes will reveal a lot more, but does anyone have experience with rehabs on a 140 year old property? What should I look out for, and is my budget even realistic?

All input appreciated! Thank you so much!

TLDR: Potentially gutting a (small: ~3000 sqft) 3-flat built in 1880. What should I look out for, and is it even remotely possible to do this project for ~85k?

Thanks for your response Jonathan! I guess it is worth the few hundred dollars to close up the window that leads into the kitchen.

One contractor suggested that we could spray a coating to frost the glass on the doors. That may be a low budget option if we end up not replacing them.

Thanks Jonathan! That is a good point.

Hi BP!

We are in the process of renovating a 1,028 square foot condo in the South Loop of Chicago!

There is one decent size master bedroom and one tiny 10 x 10 room that looks more like an office. It has a closet and two windows leading outside but also french doors (with glass panels) and a window that looks into the kitchen.

Would this window between "bedroom" and kitchen affect the sale price? Are we better off closing it into a wall?

I wanted to get insight on whether the window subtracts because it creates less privacy in the bedroom or ADDS because it is a more open office. I personally like that it allows for a view outside from the kitchen, but I can see how it feels less like a 2 bedroom and could reduce the sale price.

Thanks in advance for advice!

Hi BP!

I am renovating a 2 bed 1 bath condo in the South Loop of Chicago! 

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We are going for a very sleek modern look in the bathroom - I think a glass door shower will look terrific. HOWEVER this eliminates the possibility for anyone to ever take a bath. Do you think this will affect buyers enthusiasm?

Note: a comp with the same layout, same building sold for a great price with only a shower! But I'm still wondering if folks with experience selling condos have a viewpoint. I genuinely believe that given the size bathroom we have, it will not be possible to make a bathtub look sleek and elegant.

Thanks everyone in advance!

Hi BP family!

I am trying to buy a duplex in the southside of Chicago (Woodlawn). I always thought an investor mortgage was 20% down, but the lender from Perl mortgage said it is 25% down for a multiunit.

Does anyone have tips for finding the best investor mortgage in Chicago?

Thanks in advance,

Meera

Hi @Carol Donaldson, did you ever find a property manager? I may be looking for one soon as well. Thanks in advance!

 Thanks for the advice! Do you have experience with these loans and working with related properties and their timelines? I would love to connect about possibilities.

Damian S. I am hesitant to do any fixing up because I have a very demanding full time job and absolutely no experience with home improvements or even home buying. My goal is to find something recently rehabbed and turn key. Do you think this will be exponentially harder to cash flow? My friend recently bought a gut rehabbed Pilsen multi unit that he will make money on when he moves out. I want to find similar opportunities. Any advice? I will be sure to share my potential buys on BP to make sure I am not overpaying!

Thanks for the research Evan Thoma ! I am fairly new to the Chicago RE scene though, do you know of other neighborhoods that have affordable turn key multi unit properties that are likely to rent and generate cash flow?