[Calc Review] Help me analyze this deal

2 Replies

This is my first post to BP.  I am looking to buy my first multifamily in the Chicago area.  However, my final numbers don't seem to come out right, or maybe they are just not good deals.

This particular unit is a 3 flat in Arcadia Terrace with two 2 bed/1 bath and a 1 bed/1 bath in garden apt. Do my numbers look right to you.  I tried to be conservative.  The building has radiant heat that I would replace with an HVAC system.  I would also like to install washer/dryer hookups on the two upper units.

I would appreciate any feedback.

Thank you

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Scott Fletcher - there are a number of recommendations I'll provide after the numbers should give a better picture of whether or not it's a good deal.

1. You have $50k of renovations. How did you get there? 3 HVACs and laundry hookups won't get you close to that. Are there other repairs needed? And to the tune of $50k?

2. You didn't account for Vacancy. put 5 % for it.

3. A place you've just renovated shouldn't need 10% CapEx, drop that to 7%.

4. Find a property manager willing to do the job for 8%.

5. $550/mo of insurance seems to be extremely high. I'd be surprised if it were higher than $150/mo.

6. Do you pay for water/sewer? If so, it will be considerably more for a triplex than $60/mo. If not, that should be zero.

Could you re-run with these numbers?