[Calc Review] Help me analyze my first Chicago tri-plex deal!

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  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    4y

    @Paul Brower I tried to follow the link but it didn't go through. 

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  • Michael K.
    Investor · Chicago, IL · Member since 2018 · 352 posts · 176 votes
    4y

    @Paul Brower cash flow looks decent considering how many variable expenses you baked into your analysis. The 6.7% cap rate is good but depends on the condition of the building and the neighborhood it is in. Are the rents actual or estimated? Just added you, would be happy to go over the numbers with you in more detail! Feel free to reach out

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  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    4y

    @Paul Brower - Overall deal looks strong.  Are you able to provide a little more context about it?  What Chicago neighborhood is it in?  What's the current condition?

    $4500 seems like a lot of rent if units are in tip-top condition.  Also, you didn't include water.  What's the $100 expense.

    @John Warren - FYI - you have to click the "view report" link not "calculator - I did the same thing at first.

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  • Jason Albasha
    Lender · Chicago · Member since 2018 · 118 posts · 66 votes
    4y

    @Paul Brower

    Looks good on paper. What neighborhood is this in? If it's in a nice area then it's a steal, if it's on the west/south side then you're being taken for a ride.

    Also, what is the condition of the building? Are all the utilities separate?

    Are all the units legal units? This will matter when financing as banks won't count "illegal" unit incomes towards your DTI.

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