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Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
House hacking continues to be one of the most powerful ways for Chicago investors to build wealth and more importantly jump start their investment journey. Few strategies combine affordability, leverage, and cash flow potential like living in one unit while renting out the others. Paul De Luca, broker with the Axon Group, has personally house-hacked four different properties across Berwyn, Belmont Cragin, and Portage Park — and he joined us to share exactly what worked, what went wrong, and what he learned along the way.
In this episode of the Straight Up Chicago Investor Podcast, we dive into Paul’s journey from his first Berwyn duplex in 2019 to managing tenant drama in Belmont Cragin and helping clients today find house hacks in C-class neighborhoods. You’ll hear how he left his W-2 job, built a portfolio during COVID, and developed a “fair but firm” approach to being a live-in landlord.
From pricing mistakes that cost him months of rent, to discovering bed bugs after closing, to navigating non-conforming units with appraisers, Paul provides the real-world lessons house hackers in Chicago need to hear. Whether you’re buying your first two-flat or scaling your portfolio, this episode is packed with actionable takeaways.
Questions We Answer in This Episode
Q: What was Paul’s first house hack and what mistakes did he make?
A: In 2019, Paul bought a duplex in Berwyn with 5% down. His biggest mistake was overpricing the vacant unit, which sat empty for three months. The lesson: it’s better to drop the rent by $50–$100 than lose thousands in vacancy.
Q: How did house hacking help Paul leave his W-2 job?
A: With one unit covering most of the mortgage, his housing expense was only $500–$1,000 per month. Combined with $50K in savings and frugal living, it gave him the confidence to jump full-time into real estate.
Q: What challenges did Paul face in Belmont Cragin?
A: He purchased a legal two-flat with a non-conforming attic unit, which created appraisal hurdles. Shortly after closing, he discovered a bed bug infestation and an abandoned unit. Screening tenants has also been more difficult compared to Berwyn.
Q: How should investors think about non-conforming units?
A: They are common in Chicago, but come with risk. Appraisers often require removing a stove or capping plumbing to pass. Always underwrite a discount compared to legal units and know the risk of the city requiring removal.
Q: What is it like being a live-in landlord?
A: Paul has found transparency works best. By enforcing the lease “fair but firm,” tenants often respect him more. He avoids mediating tenant drama but steps in to enforce lease terms when necessary.
Q: Where are today’s house hacking opportunities?
A: Paul highlights affordability-driven C-class neighborhoods such as Berwyn, Belmont Cragin, Brighton Park, North Austin, and Little Village/Marshall Square. His current focus is Portage Park.
Q: What separates successful house hackers from those who never buy?
A: Consistency. The successful ones analyze deals regularly, set realistic expectations, and act on opportunities. The rest get stuck waiting for “perfect” deals that never arrive.
Q: What are Paul’s long-term goals?
A: Continue house hacking, add flips as a capital engine, and transition into being a full-time investor while staying selective about clients.
Show Notes
00:00 Active projects, design choices, and rehab budgets
03:05 Housing Provider Tip: Adding central AC to boiler buildings to increase rent and reduce vacancy
04:19 Meet Paul De Luca – Axon Group broker and house hacker
08:12 First Berwyn duplex, pricing mistakes, and early lessons
12:23 Second Berwyn two-flat, mentorship under Jake Feman, and getting licensed
15:52 Leaving his W-2 job with $50K saved and first commission check
21:02 Belmont Cragin three-unit: non-conforming attic, bed bugs, and tenant issues
27:40 Comparing Berwyn vs. Belmont Cragin tenant profiles
31:07 Life as a live-in landlord and enforcing the lease fairly but firmly
34:08 Current focus neighborhoods: Portage Park, Belmont Cragin, Brighton Park, North Austin, Little Village
36:11 Setting realistic expectations with new house hackers
39:16 Axon Group’s growth to 22 agents and $76M+ in volume
40:33 Paul’s five-year plan: more house hacks, flips, and selective client work
43:19 Chicago’s outlook: bullish on affordability and two-to-four unit advantage
46:40 Lightning round: competitive advantage, advice, resources, and recommendations
Takeaways for Chicago Property Managers and Landlords
- Don’t lose months chasing rent — price to rent fast, not high.
- Central AC is a leasing advantage that boosts rent and cuts vacancy.
- Non-conforming units are common but come with risk — always underwrite conservatively.
- Tenant screening is critical, especially in C-class neighborhoods.
- Transparency works as a live-in landlord — enforce the lease “fair but firm.”
- House hacking compounds wealth by lowering housing expenses and accelerating savings.
Guest
Guest Name: Paul De Luca
Guest Company: Axon Group
Guest Link: Instagram @paul_duca2 • Active in BiggerPockets Chicago forums
Because finding good tenants and property management shouldn’t feel like online dating.
Dear Investor,
If you are an investor in either the city or suburbs of Chicago, I would love to speak with you about how we can help you on your real estate journey. At GC Realty & Development LLC, we help hundreds of Chicagoland real estate owners and brokers each year manage their assets with both full service property management and tenant placement services.
We understand that every investor’s goals are unique, and we love learning about each client’s individual needs. If there is an opportunity to help you buy back your time by managing your rental property or finding quality tenants, please check us out.
Best Investing,
Founder, Partner, Podcast Co-Host, and Investor
