Chicago (Avondale) 2 unit
Hey BP!
Just getting into the game here in Chicago (graduated about a year ago and moved to the city shortly after).
So now after getting a better feel for the various neighborhoods around the city, I'm looking to make the jump into the small multifamily (2-4 unit) market. I've started to run some numbers and am just hoping all you crazy knowledgable people could give me a quick check.
The property I was looking at is actually under contract, so it doesn't look like I'll have a chance this time around, but I know deals come around all the time.
Anyway, to the numbers:
2 flat (each unit is a 2/1)
Purchase Price: $225,000.00
Down Payment -- 22,500 (10%)
Purchase Closing Costs: $5,000
Estimated Repair Costs: $5,000
Monthly income - $2400 (according to rentometer, each unit should probabyl rent for aroudn $1200)
Expenses:
Vacancy - $120.00 (5%)
CapEx - $240.00 (10%)
Sewage - $10.00
Management - $240.00 (10%)
Property Taxes - $379.33
Repairs - $240.00 (10%)
Water - $10
Garbage - $10
P&I - $966.77
Total - $2,216.10
Income to Expense Ratio (2% rule) - 1.02%
TOTAL MONTHLY CASHFLOW -- $183.90
CASH ON CASH ROI -- 6.79%
So, obviously not the 10% or more cash on cash that some deals are on here. Is this just a mediocre deal or are some of my numbers obviously way off? Any feedback is greatly appreciated. I've attached the report from the BP rental property calculator as well.
Links to the listing:
http://www.realtor.com/realestateandhomes-detail/3...
http://www.trulia.com/property/3196836445-3705-N-K...
http://www.zillow.com/homedetails/3705-N-Kimball-A...
https://www.rentometer.com/results/ulAhKSFncjg
BP Calculator Results -- http://www.docdroid.net/file/view/12pt3/kimball.pd...
Thanks in advance!
Keanan