All Forum Posts by: Tj Floros

Quote from @Michele Richard:

Hello all, 

I am in the process of buying my first property but have hit a roadblock. I want to house hack a 2-3 flat in the west loop or river north of Chicago but do not qualify for a loan because I am a 1099 employee that started work the end of last year and I am being told I need 2 years of documentation to show sufficient funds.

My husband has a W2 job but his commission is not accounted for either, so we only qualify based on a very small income that does not reflect our overall income status. 

With that being said, I want to buy a multi family (roughly 800K-1 million) and house hack with a 10% down using my own funds and would like to figure out a way to do that. I know asking a family member to cosign is a possibility but I am open to any other suggestions. We also would be open to other investors joining our team to help us out while making a nice return. All advice is appreciated in advance! 

 Hi Michele,

I will just put my experience into this list. I used a homestyle loan on a rehab project and I needed a family member of mine to be a co-signer as a non owner occupant. That allowed me to spread my DTI around to get the loan. I would talk with a couple lenders and see if that is possible. Have them sign to get you into the loan, you put up all the money and some time down the line you refi the property into your name and remove them from the loan.

Quote from @Lucas Helliker:

Hi all, 

I am looking to house hack a 3-4 unit building on the North Side of Chicago with an owners unit that will offer my family more space than we have now. One option that I am evaluating is buying a 3 flat with a basement and creating an owner's unit by duplexing unit 1 down to the basement. I am wondering if a homestyle loan could cover this. In my current residence we built an ADU in the basement through the cities ADU pilot program. It was extremely expensive because we needed to replace the electrical for the basement, dig down 8 inches, and replace the water service.

Since we would of course be pulling permits in the duplex down scenario, I am wondering if we would potentially need to do all of those major renovations again? It seems like this approach to duplexing down could create a lot of value and make the refinance worth the costly renovations, especially if I could use a renovation loan. Before pulling the trigger I would do market research on the ARV for similar product in that area. Has anyone done this that could share some insights or tips ? Appreciate you!!

 Hey Lucas, 

I'm actually in the same boat as you, I'm looking to house hack a 2 flat in the northside and duplex down to the basement to have a bigger onwer's unit. I'm focusing on a 2 unit vs a 3-4 unit because most north side building wont pass the FHA self sufficiency test.

However, I used the homestyle renovation 5% down loan on a 3 unit to update all the units which came out to about 100k per unit. I just finished that project last month in early March down in Bridgeport. From my experience with the loan program I had to use a licensed GC and pull all permits as needed, I had to forward all approved permits and architect drawings to the bank to do any withdrawals and to pass underwriting. 

Now if you had private money, hard money, or a HELOC maybe that could be a work around to avoid having to get permits and having to get the city involved which as you know could cost you way more money than what you budget for.

Since you are not adding a legal unit through the ADU program and just adding more living space to the first floor by going down into the basement i'm sure there are some loop holes or items that you could maybe avoid or maybe "not do". Since my budget is extremely tight I'm trying to avoid updating the water service, having to dig down, possibly leaving the floor joist exposed to make the basement feel taller. One thing I WOULD do is water proofing, ie drain tile, and possibly updating the underground sewer line if needed before I finish the space.

Depending on the amount of deals you have done it might be hard to get hard money, but I would try that first to try to save some money on the front end then just refi into a conventional loan when the project is finished. I would also suggest looking into the area you want to buy and looking at ARV's then running the numbers backwards into your deal to see what your purchase price needs to be.

If you want to talk more about this or need any help, I'm always free to chat ! 

Quote from @Matthew Bernal:

Hey everybody! I just got done analyzing this property with the Fix and Flip Analyzer. What would you do to improve it? 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

 I would agree with the last poster. I know I paid 5k for a small kitchen for all material and labor for install included. If these remodel cost are from a contractor and a signed contact then you should be good**, but also have some extra money set aside if you open up a wall and need to do more work than expected especially if it is just cosmetic remodel on paper. My last project my holding cost amount was correct but my timeline was off by a couple months because of delays so thats how hold cost went over budget, so just my own remodeling experience. 

If you plan on adding the deck, I would consider maybe looking into a short term rental if possible. You'll definitely get a property value boost but the short term rental rate vs the long term rental rate might be a huge difference. Just something to consider, always give yourself multiple options. 

Quote from @Mi'al Rice:

My name is Mi’al, I’m 26 years old and based in the Chicagoland area. I’m brand new to real estate investing and super excited to finally start this journey. Financial freedom and becoming my own boss have always been goals of mine—and a few weeks ago, I made the decision to start working toward those dreams through real estate.

Right now, I’m soaking up as much knowledge as I can and learning something new every day. If you’re an experienced investor or even just a step ahead, I’d love to connect and hear any tips, insights, or strategies you’re willing to share. I truly appreciate any guidance and look forward to learning from this amazing community!

 Hey Mi'al, 

Welcome to BP! Its a great place to get started and learn some basics. I would also recommend to start attending some local meet ups here in the city, you'll get to network face to face and learn more about your local market. Once you feel like you have a good understanding of the basic and are ready to take a leap I would recommend connecting with a local lender and Realtor to start the process of trying to get your first deal! I'm happy to connect and recommend some local meetups, lenders, and podcast I highly recommend!  The straight up Chicago investor podcast is one I recommend to anyone looking to invest in or around Chicago. 

Quote from @Danny Gallagher:

My name is Jaclyn Gallagher, and my husband and I just started a real estate investment company based in the northern suburbs. With a background in sales and a lifelong fascination with real estate, I decided to create a company that allows me to combine my passions while providing more time freedom for my growing family. We specialize in single-family and multi-family, fix and flips. My goal here is to forge strong connections within the industry and work collaboratively to learn from each others mistakes to ultimately achieve success. I'm always open to discussing potential deals, mentorships, and networking opportunities. Please don't hesitate to reach out – I look forward to connecting with you!

 Welcome! Always a good idea to connect and learn from others mistakes I have made plenty doing my own remodel projects, and have paid for it with money out of my own pocket lol.  

Quote from @Paul De Luca:

What do you guys think about this? Current bill status can be found here.

 Concerning being a landlord myself here in Chicago. I was always on the fence about a security deposit vs a move in fee and have always gone move in fee because of all the negative feedback I heard about collecting a security deposit over the years. However, if move in fees are out then maybe I should really consider collecting a security deposit and bring a good tenant attorney on my team. 

Quote from @Sarah Patel:

Hello! I am new to the REI world and my husband and I's goal is to invest in a property by the end of the year and use as a STR. We live in the western suburbs of Chicago and have been weighing the pros and cons of investing in-state vs. out of state. While the current suburb we live in (Elmhurst) seems to be appreciating very well and surrounding comps support list to price ratios of 90% and up, we aren't sure if it's the best market for a STR (perhaps a flip).

While there may be better deals out of state, we worry that out of state investing may be too much for us  to handle as our first property. I say this because we have a toddler and have another on the way and both of us work W2s. I work 40hrs/week while my husband works anywhere from 50-90hrs/week. Do people still invest out of state in our situation? Sure! And they have my utmost respect. I'm just not sure how feasible it is for us personally. That doesn't mean we aren't open to investing out of state further down the line. I'm just wondering if investing locally makes any sense. Of note, we would use our realtor who helps us purchase our current home, already have some contractor contacts, repairmen, etc- making our core 4 already in place here. Our ultimate goal (as is anyone else's) is to be able to scale back our time at our W2s and replace that with income from real estate. We know that's not going to come with the first property but want to give ourselves the best opportunity to learn we can. 

Bottom line: anyone who has recently invested in the Chicagoland area think that there's still plenty of opportunity here? Or would you argue that the additional challenges that come with out of state investing are worth the potential of a better ROI? We are also hesitant about timing and whether or not to wait and see if the current administration actually restores the TCJA full bonus depreciation provision.

Any feedback/input is welcome. Thanks for reading! Excited to be here and learn. 

 Hey Sarah!

I'm in the same boat as you, well sort of lol. I just finished up my 2nd house hack which was a BRRRR and getting ready to do it again in 2026 here in Chicago. However, after this 3rd project I think I will be capped out of my DTI and will have to start putting 25% on projects, with that being said like you I want my dollar to go further then what it can here in Chicago. I love investing in Chicago because i think you can get cash flow, post remodel, and a good appreciation depending on the neighborhood you land in. In Chicago its really about making a good deal, its hard to find them on the MLS right now given the current market. I'm thinking about either investing further outside of Chicago or in a different market, IE out of state, all together. Part of me wants to stay 1-3 hours driving distance of Chicago so I can get to a project if need be and having the ability to get somewhat local referrals. Investing out of state I feel like I would need to get an entire team up off the ground and running when like you I have some elements of a team already in place. The only pro I've seen far about investing out of state, maybe lower price point to entry and probably lower property taxes, along with hopefully less pro tenant ordinances.

I really have not looked into what states I would invest in or what kind of capital I would need. I think how much you have to fund the project, down payment, closing cost, holding cost, remodel cost, will definitely direct you into a market that you can afford.  

If i were to invest out of state, i would take my time finding a market based on population growth, jobs, housing, etc. After finding a good market I would then just look for a local lender/ agent and find a very small size project with very light remodeling just to get my feet wet, learn the permit process, etc. I would also visit the area multiple times, driving the city/town, meeting the agent & contractor, and then come back to the project mid project and at the very end. After that project hopefully I would make a good amount of connections to scale everything up. 

Quote from @James Huff:

Good morning! 

I currently own two properties and one of my friends living in the city of Chicago is looking to get out into the suburbs and rent by the room or house hack. Anyone able to help? I can get you in touch with him.

Hey James! 

Your friend caught the house hacking bug too lol? Your friend can definitely find a nice small multi property just outside the city I have plenty of friends myself who are doing it. Chicago is also a great option because the city's housing stock is filled with 2-4 units, and the taxes can be lower in the city compared to some suburbs. I'm happy to help and talk with your friend with any questions or just bounce ideas off each other! 

Quote from @Connor Chatlos:

Hi All,

Looking at some potential BRRRs in some satellite cities of Chicago. Just moved here less than a year ago. Does anyone have or know a place to find some general contractors? Really trying to get a hold of construction costs for certain home fixes. 

Also, where is a good place to estimate rehab costs based on a specific property? Want to get better at coming with more accurate numbers. 

Thanks!

 Hey Connor!

I myself just finished up a BRRRR a couple weeks ago in Chicago. Depending on the area you are looking to buy and invest in here in Chicago I have a contractor referral. Like already said, your agent can help you with finding a good GC.