First "Investment" 95% Done!
Hey BPers. Triston Murray from Chicago! I wanted to share a little bit from a recent deal that just got appraised. I consider this my first pure investment, since the Chicago 2 flat I already own and rent is also my primary residence.
So, here are some numbers!
- Address: 17000 Locust Ave, Hazel Crest Illinois
- Total Purchase: $55,895 (Total amount on HUD-1)
- Total Rehab: $40,475 (inc'l village permits)
- Mortgage Balance: $39,267
- LoC Balance: $51,252
- Current Out-of-Pocket: ~$7,290
Total Owed to Lender: $90,519
Total Out-of-Pocket: ~$7,290
To be completely honest I wasn't entirely sure what direction to take when first embarking on this project... Whether I would sell or hold. Because of uncertainty, I wanted to put myself in what I felt should be an "OK" position to do either, by not going super crazy with the rehab, but I also didn't want to get cheap. Unfortunately the rehab did end up going a bit over budget (or is it that the appraisal came in low?), but thankfully I think I'm "OK":
Here's some more numbers!
- Appraisal: $125,000
- 75% Cash Out Refi: $93,750
So while the place is on the market right now, and will probably update and run it again at a slight discount.... I am leaning towards keeping it. I figure I can at least pay off my lender the $90,519, take the $7k hit and use the remaining $3k or so to absorb any underwriting fees and to hedge against future vacancies etc.
Please let me know your thoughts, advice, just really anything! I'll post pics later. Thanks Everyone!