Need help in analyzing a 6 unit property in Chicago
Hi BP members, I wanted to ask all of you if anyone can help me analyze this off market deal from my realtor. Its is a legal 6 unit building in Jackson Park. it consist of (5) 3/1.5 and (1) 2/1. Owner said it has updated electric and copper plumbing newer forced air furnaces and c/a conditioners and some more updates. 2 of the 6 units are vacant and 3 units are being rented at $900.00/month with one unit being used to house the property manager. I am new with analyzing multifamily, According to my realtor the 2 units need some rehab or updating. Tenant pays their own heat and Electric.
asking price $265,000.00
taxes $7500
Unfortunately I don't know how much the water bill and gas bill are and don't know what the extent of the rehab for the remaining 2 units.
Any advice, comment or replies to this thread will be greatly appreciated. Thank you in advance for your assistance
Most Popular Reply
This is what I come up with base on the following assumptions:
1. $40k repair
2. 3% closing cost
3. 50% Operating Expense
This is a template I use myself, it's not proven useful/accurate. also considering all the assumptions ...