Logan Square - 3 Flat Buy and Hold Under Contract
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