In this market where listings range so much by type and condition, it is so easy to end up on a wild-goose chase. What must occur instead is to learn to separate wheat from the chaff and hone in on what you want.
Here is some more of how we think an EFFECTIVE property search works.
We will also want to help you clarify and set a focus on property condition:
· “LITTLE OR NO” WORK
· “SOME” WORK NEEDED
· “GUT REHAB” NEEDED
We say “Little or No” work, but – trust us – few 2- to 4-flats in Chicago truly need NO work over the next several years. Here’s a chart of typical costs (add the numbers and you’ll find 50K on the light end, 100K in the middle, 150K at the high end.)
And then there is the PORCH.’ Virtually NO porch built before 2007 meets the new code—and there is no grandfather provision. The city can’t ask EVERYONE to rebuild their porches—but they will be asking some to!
Does this seem daunting? We can offer this hope: most investors view the first loan they take out as a temporary loan. That is, their intent is to refinance the property in as short as one year so as to let the building pay for its own updating.
In addition, we would point out that, especially if you choose 100% financing, you may be investing very little of your own cash into this purchase. The funds you might have invested are now available to help you take care of the building. And we can even help you get up to a 2% seller credit at closing to help you have the funds you need to manage the whole transaction.
And this is just the start of what you’ll find at www.Chicagoland2to4Flats.info!!!
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