Chicago, like every other major city in America, has its good attributes and bad ones. Your experience living in Chicago has a lot to do with where you live. From Uptown to Hyde Park, East Garfield to the Loop, each of the metro area’s 77 official community areas brings its own unique personality. Since Chicago is located in the midwest, most residents ooze friendliness. Though, once the winter months appear, all bets are off. U.S. News analyzed 125 metro areas in the US and Chicago was ranked #87 for best places to live and #39 for best places to retire too.
The cost of living in Chicago varies greatly from neighborhood to neighborhood. The average cost of a home in Chicago is $222,350, but in certain areas, houses can cost upwards of $1M and more. Another obvious conversation about whether or not to live in Chicago is the weather. Summers can be extremely hot while winters can be unbearably cold, but public transportation is a major perk to living in the Windy City. Many Chicagoans opt-out of owning their own vehicles due to traffic and lack of parking, but there is a robust public transportation infrastructure to support them.
Sharestates has funded many properties in Chicago. One such property is located in the neighborhood of Kenwood. Kenwood is on the shore of Lake Michigan and on the South Side of the city. This neighborhood has some of the largest single family homes in all of Chicago and is the home of President Barack Obama and some other famous people in American history, including Muhammad Ali. Kenwood was once considered the most affluent neighborhood in all of Chicago.
The borrower for this property is acquiring the building with the intention of adding value through rehab. Rehab for this property consists of new drywall, new inside plumbing and electrical, all new kitchens with new appliances and a new HVAC system. When the rehab is complete, the property will be leased out to tenants.
- Loan Amount: $597,000
- Purchase Price: $465,000
- LTV: 50%
- LTC: 73%
- Average renovation budget: $349,550
- ARV: 60% or $1,000,000
The second property is located in the neighborhood of Auburn Gresham more commonly referred to as “Gresham”. This area is about 9 miles south of downtown Chicago. This area is called the “Bungalow Belt’ due to the streets lined with hundreds of arts and crafts inspired brick homes throughout the residential area. These row houses are unique and beautiful. Gresham is also known for the finest “soul food” in the city that people come from all over to try.
The borrower for this property previously acquired and renovated the building. The borrower intends to refinance the property, in order to pull out equity and pursue new real estate opportunities. The borrower will rent the property and obtain traditional financing to repay the loan.
- Loan Amount: $390,000
- Purchase Price: $312,000
- Mixed Use
- LTV: 74%
- LTC: 76%
- ARV: 50% or $785,000
The last property we’re showcasing is located in the Bedford Park area of Chicago. With a population of less than 700, the neighborhood is primarily a tiny residential area with large amounts of heavy industry. Bedford Park only covers about 6 square miles with a median household income of about $64,000. The median property value is about $168,000. The average age is in the high 30’s, and most people own their own homes.
The borrower for this property previously acquired the building and is refinancing to obtain construction funds to begin the build-out. The borrower is planning on updating the heating system, add new appliances, windows, wood flooring, and painting. The borrower intends to complete the build-out and either sell at completion or refinance into a conventional loan.
- Loan Amount: $330,000
- Purchase Price: $465,000
- Multi-FamilyLTV: 63%
- Average renovation budget: $111,300
- ARV: 65% or $510,000
To see some more of Sharestates recently funded properties in Chicago or other parts on the U.S. or to learn about our loan programs to get funding for your next real estate project please click below.