Can I buy a 3-unit or 4-unit building with an FHA loan?
Yes, if you live in one of the units. FHA allows 1 to 4 unit properties with 3.5% down, but 3 and 4 unit buildings must pass the self-sufficiency test: 75% of the expected rent from all units must cover the full monthly mortgage payment, including taxes and insurance. I run this test before you make an offer.
What is an FHA 203(k) loan?
A 203(k) is an FHA renovation loan that combines the purchase price and the repair costs into one mortgage. It is designed for owner-occupants and works well for distressed 1 to 4 unit properties that wouldn't qualify for a standard loan in their current condition.
Why invest in Chicago and Illinois real estate?
Illinois offers a wide range of investment markets. Chicago's South and West Sides, the south suburbs, and many downstate cities have lower purchase prices and strong rent-to-price ratios, while the North Side, west and north suburbs often offer stronger appreciation and tenant demand. The tradeoffs include high property taxes in many areas, rental licensing rules that vary by town, and big block-by-block differences, so careful underwriting matters.
How do property taxes affect cash flow on an Illinois rental?
Property taxes are often the largest expense after the mortgage. Always underwrite with the actual tax bill, and expect the taxes to rise if the current owner has a homeowner or senior exemption that won't carry over to you as an investor.
Do Illinois towns require rental licenses or inspections?
Many do. Many Illinois municipalities, including Chicago and numerous suburbs, require landlords to register rentals, pass inspections, or renew licenses, and fees and rules differ by town. I check these requirements as part of evaluating any investment property.
I live out of state. Can you help me invest in Chicago?
Yes. I work with out-of-state investors using video walkthroughs, rent and sales comps, and coordination with local inspectors, contractors, and property managers so you can buy with confidence without flying in.
Do you help with BRRRR, fix-and-flips, and distressed properties?
Yes. I invest in my own properties and understand rehab budgets, after-repair value, and refinance timing. I help investors find, analyze, and negotiate distressed, vacant, and off-market properties.
What numbers should I look at before buying a rental property?
At minimum: realistic market rents, actual taxes and insurance, vacancy and repair reserves, cap rate, cash-on-cash return, and for financed deals, the debt service coverage ratio (DSCR). I prepare a deal sheet with these numbers for properties my clients are seriously considering.
