Skip to content
Real Estate Deal Analysis & Advice

User Stats

47
Posts
5
Votes
Marvin Anaya
  • Investor
  • Chicago, IL
5
Votes |
47
Posts

Is this a good buy? Chicago 2 flat

Marvin Anaya
  • Investor
  • Chicago, IL
Posted Jan 25 2015, 19:49

Hello!

Is this a good investment? I would live in the basement 1st year and rent out all 3 units afterwards. Thanks!!

First time home buyer here, just put an offer on a 2 flat in Chicago. My offer is $184,000 and I am financing via FHA at 3.75% with 3.5% down. As part of the FHA terms, in my offer I am requesting a 3% closing credit from the seller. This is a Fannie Mae property. I am estimating that I will pay about $1,000 out of pocket to cover the rest of the closing costs.

Unit 1 and Unit 2 are the same - 2 BR, 1 Bath apartments. Basement unit is 2 BR, 1 bath but is smaller. Units 1 and 2 I can rent for $850 and the basement $650, totalling $2,350. Taxes are a whopping $3,800 per year (2014 data). Here is my BP analysis:

Loading replies...