I own a 100+ year old rental property in Hermosa (duplex) and househack nearby in Humboldt Park. With owner occupied/house hacking and over 100k downpayment you can get a better deal in Hermose or elsewhere. If the property has been so neglected that they allowed this water damage imagine what else will pop up in the first couple of years which are typically the hardest.This is my very first post on the Bogleheads forum. Looking for advice re: my first potential real estate purchase in Chicago. Looking to purchase an older 2-unit multi family property for $415,000 @ 7.00% interest in the Hermosa neighborhood. My plan is to rent one unit and live in the other unit. The inspection report showed numerous issues with the property. The major ones include soft spot found on the roof in addition to plumbing issues in the form of water stains and dry wall damage on the bedroom where an active roof leak exists as well as water stains elsewhere on the property. My understanding is that a house with plumbing/water issues and bad roof is a big risk and new roof is the most expensive home renovation with an average cost of $10-20k. Seller refuses to repair these. I am only only allowed to request a 3% credit from the seller with a conventional loan which equals $12,450 and is not enough to cover these repairs. I am starting to get cold feet about going through with this purchase and worry it'll drain my capital of which I have $110k to spend on down payment, closing costs, rehabbing, etc. Expected monthly mortgage would be $3k/month. Would I still be getting a deal or should I walk away?
If you have already paid for an appraisal; what did it ir appraise for? Also why are you only allowed to request a 3% credit? You should be able to do at least 6% depending on lender. Even if its a solid bric structure with that just needs a new roof, demolotion and reframing/rahab a couple rooms doesnt sould like anything over 350k is a good deal. Even then it will be ahuge headache.
Statistics: Posted by Durzo — Thu May 02, 2024 8:01 am — Replies 6 — Views 397