First commercial investment- Chicago Suburbs

2 Replies

Hello all,

I am in the final due diligence stages before I submit an offer for my first commercial property. I am sure most of you remember your first offer. Frankly, I feel a very strange combination of confidence and wanting to vomit. Anyways, I wanted to post my numbers and see what more seasoned investors thought.

If you are familiar with the Bellwood/Maywood suburb of Chicago this is the area we are talking C-/D.

However the property cash flows. 8 unit solid building six 2bd1/ba and two 3bd/1ba. My goals are to supplement my w2 job and obtain a few multi family properties.

here it is (numbers reflect self management) as I work close by):

https://www.biggerpockets.com/calculators/shared/905110/8aa8db9d-14e2-4402-b84a-0be58143537b

Any feedback or questions or comments welcome!

Looks like a decent deal from a cashflow perspective. In looking at expenses I didn’t see anything for landscaping, snow removal, advertising, accounting fees, legal fees and management fees. Even if you’re managing yourself you should include that in your expenses so you know what it looks like if you are unable to manage yourself and you know how other investors will look at the deal.

@Greg Dickerson

Thank you for the response, I do have a property management company on standby - they offer the services you mentioned at about 10% monthly. The positives about this management company is that they do not charge for a unit when vacant and they do no charge broker fees when finding/placing a new tenant.

With management the numbers look like this:

https://www.biggerpockets.com/calculators/shared/905110/5e0f17f8-a128-4bd7-b519-0bc6107209dd