Frequently Asked Questions

What is House Hacking?

House hacking is when you buy a 2 to 4 unit building and live in a unit while the other tenants help pay your mortgage.

How long do I have to stay in the building with an owner occupant mortgage?

If you are doing a house hack you only need to live in the building for 1 year. I have many clients repeat the process each year to build a portfolio. The great thing about an owner occupant mortgage is you can buy with only 5% down and we can do a closing credit of 3% vs buying as a pure investment property where 25% down is typically required.

Do you recommend doing renovations when buying a Chicago 2 to 4 unit building?

Yes! I almost always recommend that my clients make at least basic cosmetic updates after buying a property. This can significantly increase the rent. It is not unusual for us to double the rent compared with what was listed on the MLS, even with very basic updates. These updates can be as simple as painting, installing stone countertops, having a handyman inexpensively add tile backsplashes in the kitchen, adding in-unit laundry, and refinishing the floors. If you are handy, you can DIY much of this work, but I also have some very affordable contractors I can refer you to.

Which Chicago neighborhoods are your favorite for investing?

I like to find areas that are seeing gentrification. Areas where new trendy bars are popping up, coffee shops, etc. This results in strong compounding rent growth. To give an example my Rogers Park building rents were $1250 after I rehabbed the building in 2019 now those same units are $1850. That boost provides strong cashflow and equity. Currently my favorites are Albany Park, Portage Park, Rogers Park, West Ridge, Irving Park, Avondale, western half of Logan Square, Pilsen, Little Village and Bronzeville.

What if my tenants do not pay rent?

This is why I only work in specific areas and push for quality vs highest cashflow. I have never had a single late fee needed or eviction for my north side Chicago units. I share my screening criteria and let my clients ask me if they should accept a tenant even years after we close and am always there for life to give them advice, keep them up to date on laws, proper leases, etc.

I read about BRRR what is this?

Buy Rehab Refinance Repeat. It is where you buy a building rehab it and then do a cash out refinance to scale into more buildings. I have done two of these projects myself and helped many clients complete them in Chicago.

How much money do I need to get started?

With an owner-occupant mortgage, you may be able to put as little as 5% down and receive a 3% credit toward closing costs. I recommend keeping some cash reserves and budgeting for cosmetic renovations so we can increase the rents. Most of my clients put down 5% to 10%. We can tailor the search to your budget. Reach out, and I can connect you with lenders who work with investors purchasing two- to four-unit properties so you can find out exactly what you qualify for.

Do you help first time investors?

Absolutely. Many of my clients are buying their very first property, and I walk them through every step from financing to closing and beyond. I have an entire team built from our preferred attorneyrs to lenders to contractors to assist the process.

Do you recomend using a property manager?

NO! Unless you have more then 20 buildings or you are buying in bad credit areas it is not needed. A typical building on Chicagos north side should be no more then a few hours of work if that a month. I even have some out of state clients self managing with my handyman and it all runs very smoothly. For those who do want a manager though I have a list of referrals can give out.