Chicago Househack Analysis
Hi all -been analyzing Multifamily Househacks in Chicago and am getting some crazy numbers. Would like to verify on BP and seek critique for any assumptions I'm making.
| PROPERTY INFO | |
| Property Address | 3319 North Drake Avenue, Chicago, Illinois 60618 |
| MLS# | |
| Property Listing Price | $ 380,000.00 |
| Number of Units (Duplex, Triplex, 4plex) | 2 |
| Square Footage | 3,125 |
| Rehab Needed? (None/Light/Medium/Heavy/Full) | None |
| Bedrooms/Bathrooms | 6/3 |
| Crime Level (Low/Medium/High) | Low |
| Your Offer Price | $ 365,000.00 |
| Rehab Price/Square Foot (Refer to Key on Right) | $ - |
| Total Rehab Estimate | $ - |
| Total Cost (Purchase + Rehab) | $ 365,000.00 |
| MINIMUM Down Payment Required for Purchase | $ 18,250.00 |
| Conventional Loan Amount (Total - Down payment) | $ 346,750.00 |
| ... | |
| FULL OCCUPANCY CASH FLOW | |
| Est. Monthly Rent (using Rentometer) | $ 5,094.00 |
| 1% Rule (Rent should be 1% of Purchase + Rehab) | $ 3,650.00 |
| Does this PASS the 1% Rule? | YES |
| Est. Monthly Payment (PITI + PMI) - Mortg. Calculator | $ 2,482.11 |
| Est. Monthly OpEx (PITI + PMI + Utilities + Reserves) | $ 3,979.97 |
| Est. Monthly Cash flow (Rent - OpEx) | $ 1,114.03 |
| CoCRoI | 73.3% |
...
| HOUSEHACKING CASH FLOW | |
| Est. Monthly Rents | $ 4,183.00 |
| 1% Rule | $ 3,650.00 |
| Does this PASS the 1% Rule? | YES |
| Est. Monthly Payment | $ 2,482.11 |
| Est. Monthly OpEx | $ 3,979.97 |
| Est. Monthly Cash flow | $ 283.03 |
| CoCRoI | 18.6% |
...
| Utilities (Varies by Property) | ||
| Electricity | ||
| Water & Sewer | 300.00 | |
| Garbage | 150.00 | |
| Shoveling/Lawn Care | 80 | |
| Total | $ 530.00 | |
| ... |
||
| Reserves | ||
| Vacancy (%) | 5.00% | $ 254.70 |
| Repairs & Maintenance (%) | 7.00% | $ 356.58 |
| CapEx (%) | 7.00% | $ 356.58 |
| Management Fees (%) | $ - | |
| Total | $ 967.86 |
ASSUMPTIONS
-5% Down Owner-Occupied Mortgage
-3.5% Interest Rate
-.75% PMI Rate
-$6100 in property tax (from Realtor.com Tax History section)
-$2400 in yearly home insurance
RENTS
-$1822 for a 2br, 1.5 bath (Rentometer - Average Rent)
-$3272 for a 4br,, 1.5 bath (Rentometer - Average Rent)
Chicago Realtors, Chicago Real Estate Investors, Chicago Househackers, Chicago Landlords, Chicago Lenders - looking for your thoughts on my deal analysis here.
What erroneous assumptions am I making?
What parts of my analysis should be tweaked?
What words of advice do you have for someone looking to househack in Chicago for 2021?
Thanks for your time,
AJ