Hello, this is my 1st post, so please bear with me. I live in the West Chicago suburbs. I have been interested in buying and keeping rental properties for many years, I ended up buying my 1st house when I was 22. Now just a few years later, I want to earn passive income with the goal of early retirement. My grandfather owns rental property and he has always known iv wanted to buy it from him. I was raised on this property so I know it well. He recently told me it's mine whenever I want to buy it. He has a 2 flat both units are 2beds 1 bath, large ktch living and dining room. There also is a SFH 4bed, 1&1/2 bath large living & dining, on the same mortgage next door. I want to know what the Very Most I should pay for them both and what the ideal price would be. I don't want to rob my grandfather but at the same time I want to be able to earn stream of income.
Each 2flat unit rents for $800 & tenants pay light and gas
SFH rents for $1500 and tenants pay light & gas
So the total net income is $3100 per month
There is some work to be done, siding on 2flat, a few windows, electrical updates (I am an electrician) and I am pretty handy.
I appreciate and am open to any info that helps. Please feel free to comment or ask questions.
Ps the area seems to always have renters. It's an average area, not the best but not the worst.
@Alex Alanis - With the information you provide it is hard to say what it is worth. I am a RE Broker and can run a CMA for you. PM me the addresses and your email and I can run numbers and send you a report
I am pretty tech savvy but I can't figure out how to add u or "follow" u to be able to send you a pm.
@Alex Alanis what are the property taxes for each property? Property taxes in the Chicago suburbs can eat away at your monthly cash flow pretty quickly.
Also, can you give us a relative location?
Thanks for replying. Taxes are about $5,000 each. It is in Melrose Park.
I hate to throw numbers out without knowing anything more specific about the properties so take this with a grain of salt:
Sometimes I will use yearly gross rent divided by 15% to arrive at a purchase price for the neighborhoods I am in. This usually gives me a good return (250 - 300 per door) for the neighborhoods I am in. This will equate to roughly 250K price for both properties. If the properties are in pretty good condition, a more realistic price in this market would be higher than that, perhaps closer to 300K
Hope this helps and keep us updated!
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