2 Flat + Garden unit deal in Chicago (Albany Park)

[Nnabuenyi Anigbogu]

Hi All,

I have another 2flat + garden deal that i wanted to get some input on. I will be financing it with FHA and plan to live in it for the first year. I would like to refinance in about 6 months once i sell a couple of my flips to remove the annual MIP. I factored in management even though i plan to self manage for the next 3-5 years. It is in what i would call a A/A- area of Chicago in quickly gentrifying albany park. About a 5-10 min walk to the train line and 1 min walk to major street buses. Kicker is i own a 4 unit (current residence) directly behind it across the alley so i know the area well and it helps with self managing. All cash from the building stays in it as i dont currently need it to live. Me and my fiance both work full time and right now live on only half of my salary as it is (rest goes to house flips lol).

Let me know your thoughts/Critiques.Looking at it it is not a huge cashflow deal. I am essentially getting less than $100 a unit for a prime area where appreciation is rapidly happening and there is a chance i can sell in 5-10 years for a good amount. I am also pocketing the PM money for this time period so cashflow is higher. However when i refinance that takes off the approximately $280 in monthly PMI that will increase cashflow a good amount. Plus i do all of that with only 14K down with a 24% COC return after i move out.

Thank you