Updated almost 10 years ago on . Most recent reply
Chicago .... windy investing!
My first 3 unit apartment building .... purchased at $235k with 3.5% down, seller paid all closing cost, my initial investment at closing was $9186. Exactly the same building right next to mine closed a day later and sold for $250k ....
Anyway; look at my numbers below and read explanation ...
PGI = 2470
vacancy loss = 4% 100
EGI = 2370
property tax = 309.4
homeowners ins = 156.6
utilities(common/water)= 165
repairs and maint = 10% 250
NOI = 1489
debt service: PI = 1101.6
monthly PMI 253
positive cashflow 134
After 6 months of research and looking at properties in the Chicago area, it was the best I could get. It's not easy to buy an apartment house with very little down that will cash flow. If you throw 20% down that is another story .... you will get a lot bigger cash flow but your returns will suffer .... I am going for high COCR .... I don't put to much emphasis on Cap rate. Numbers above are pretty conservative .... read further explanation .....