The Gut Rehab Steve Walked Away From
The first property looked incredible: a formerly tired worker's cottage transformed into an open-concept modern home with chef's kitchen, spa bathrooms, and roof deck. Listed at $875,000, it had been completely rebuilt over 18 months.
What the Inspection Found
The inspector immediately noticed problems with finish quality: uneven trim, doors that didn't close properly, settling cracks in new drywall. These cosmetic issues suggested rushed construction. More concerning: the HVAC system was undersized for the home's volume, and electrical work appeared to have been done by someone less than fully qualified.
The Permit Investigation
Steve's agent pulled the permit history. The renovation had permits, but they remained open—final inspections never passed. The city building department confirmed multiple code violations had been cited and never resolved. The property couldn't legally be sold until issues were corrected.
Steve walked away. The seller eventually had to address the violations before finding another buyer at a reduced price.
Lessons for Rehab Purchases
Steve's near-miss highlighted risks specific to renovated properties:
- Always verify permits are closed with final inspections passed
- Look carefully at finish quality as an indicator of overall construction quality
- Ask about who did the work—licensed contractors vs. informal labor
- Budget for independent inspections beyond the standard home inspection
The Victorian He Actually Bought
Steve's eventual purchase was a brick two-flat on Hoyne Avenue, built in 1892. The building had been continuously maintained rather than gut-rehabbed, with updates made over decades rather than all at once.
What 130 Years Looks Like
The inspection revealed exactly what you'd expect from a 130-year-old building: some foundation settlement (stable), masonry pointing needs on the rear elevation, original wood windows that needed weatherstripping, and mechanical systems that ranged from adequate to aging.
Unlike the gut rehab, nothing was hidden. Steve could see the building's history in its walls, and the inspector could evaluate everything visible.
Foundation Realities
The limestone foundation showed settlement that had occurred decades ago and stabilized. Mortar joints needed attention in several areas. A structural engineer ($450) confirmed no active movement and recommended periodic monitoring and mortar repair—standard for buildings of this age.
Mechanical Systems Audit
The building had separate HVAC for each unit: newer high-efficiency furnaces (good), no air conditioning (common for the era). Electrical was 200-amp per unit, updated at some point, with mostly modern wiring visible. Plumbing showed the typical mix: copper and PEX supply, original cast iron and newer PVC drains.
Two-Flat Specific Considerations
As a two-flat, Steve's building required evaluation of shared systems and legal unit status.
Zoning and Use Verification
The inspector recommended verifying the property's legal use. Many Chicago two-flats have had their zoning changed over years, or units may not meet current building code for rental. Steve's attorney confirmed the property was legally a two-flat with proper zoning.
Shared System Evaluation
Water heaters were per-unit (good for billing). The sump pump system served the whole building. Roof, foundation, and common areas require maintenance budgeting across both units.
Rental Unit Considerations
The garden unit had its own entrance, legal egress windows, and separate HVAC—meeting Chicago requirements for rental units. Steve planned to rent this unit to offset his mortgage, so confirming legal rental status was essential.
Historic Property Inspection Approach
Steve sought out an inspector experienced with historic Chicago buildings. The difference in perspective was valuable.
Contextual Evaluation
Rather than flagging every age-related finding as a defect, the inspector explained what was typical for the building's era versus what warranted concern. Floor slope? Common in 130-year-old buildings. Cracked plaster? Expected. Active water intrusion? That's a problem.
Preservation Considerations
The inspector noted features worth preserving: original pocket doors, decorative fireplace mantels, hardwood floors, original window hardware. These elements have value beyond their function, and careless renovation can destroy them.
Steve's Advice for Wicker Park Buyers
After his experiences with both property types, Steve offers this perspective:
- Don't assume new equals better. His gut rehab near-miss had more problems than his 130-year-old Victorian.
- For renovated properties, investigate permits thoroughly before falling in love with finishes.
- For historic properties, find an inspector who understands old buildings and can distinguish normal aging from real concerns.
- Budget for maintenance either way. New finishes need eventual attention; old buildings need ongoing care.
Three years into owning his Victorian two-flat, Steve has spent $35,000 on masonry work, window restoration, and system maintenance. The rental income from the garden unit covers most of his mortgage. He has no regrets about walking away from the problematic rehab or choosing the honest old building instead.