Good deal or too small?

Question

Condo in belmont cragin. Investor owned 50%. $105k with 10% down $10,500 and owner financing 5% 25 years.

$505 mortgage + $70 taxes + $200 assessments (includes heat) = $775 total and rents for $1100 so cash flow $325 monthly+$200 in amortization. Special assessments here and there may add $100 a month? and occasional vacancy its a 40 unit low rise. Has ac window units and no mechanical in the unit to brake.

Granite countertops and some new drywall/paint. Flooring is old and cracked.

Ryan Lee · Answer

Account Closed what do you want from the deal? Is it in an easy to manage area? difficult to manage? Really, the point is that it comes down to your business model. No one can tell you if its too skinny, but you need to make sure that it fits into your business plan for deal structure. If it doesn't then don't buy it.

Account Closed · Answer

I would personally like to stick to 250k properties so that I can have atleast 2.5 million when there all paid off and some cashflow and really take on chicago appreciation. But due to being self employed it's difficult to get right now. Might make a low offer and see what they say.

What are typical special assesments for 40 unit buildings? That is really the biggest uknown. Are these typically $100 increases for 3 years or sometimes $5000 assessments. It's hard to tell and the building looks ill maintained.