Logan Square - 3 Flat Buy and Hold Under Contract

[PJ Kolnik]

Hi Bigger Pockets Members in Chicago,

Its been a long two months but I'm cautiously optimistic that I just locked down a 3 flat over in Logan Square Hermosa with a https://www.redfin.com/IL/Chicago/2441-N-Avers-Ave...

Overall cost: 506,000

3.5% down+closing costs: Approximately $26,000

Monthly Payment (PITI): $3760/month

Cash on Cash Return: 23.5%

Estimated total updates: $55,000

Estimated Cash flow: $4200 / month

Estimated CAP Rate: 6.8%

Rents:

Unit G (2 bd / 1 ba): Current 900 - Raise to 1100

- updates include:

-Adding in-unit washer dryer

-update kitchen, pretty much need a new kitchen and new appliances.

-update bathroom

- paint

- add third bedroom after moving the water heaters and electrical to the other side of the basement in the back.

- estimated budget: $25,000

Unit 1 (2 bd / 1 ba): Currently unoccupied - Rent for 1400. Because this is FHA, this will be the one that my wife and I will live in. I plan on projecting this rent and pay this into the overall cashflow of the building as if I am renting from myself.

- updates include:

- replace a broken window

- add in-unit washer dryer

- remodel kitchen

- update bathroom

- estimated budget: $20,000

Unit 2 (3 bd/ 1 ba): Currently Owner Occupied - Rent for 1700

- updates include:

- update bathroom

- re paint to match the unit below - unifying paint colors across all units seems to be a good idea

- new door and closet in the third bedroom, currently configured as more of an open office

-estimated budget: $10,000