Hello - I am curious to hear your feedback on this deal. I have property management and investment experience through my family but this would be my first own deal.
Left side of a duplex in Mundelein, IL.
Asking: $209,000
Rent estimate: $1600 month / $19,200 annually
Property Tax is rather high with $6000 annually
Cash Flow after property tax / insurance before maintenance/repair is $12,000 at zero vacancy and $9,000 at 10 months annual vacancy.
In my simple way of looking at it I'm at 6.4% or 4.7% return on capital.
Looking forward to hearing input from more experienced peers.
Also, if anyone has opinion if IL in general is a landlord friendly state, I'd appreciate that too.
Real Estate Agent · Wauconda, IL · Member since 2016 · 208 posts · 99 votes
6y
@Manuel Lindekeit, welcome to BP! IL is a tenant-friendly state. Lake County is a very desirable area, comparatively. Does your cash flow factor in your debt service payment or are you paying cash?
Hi Martin - still working on financing but with excellent credit and solid down payment it should come out decent. Looking at a 10 year to pay down quickly.
It's a bit concerning to me to invest in a high property tax / tenant friendly / state but I live here now and would like to be close to my investment.