All Forum Posts by: Keanan Koppenhaver

Hey BP!

Just getting into the game here in Chicago (graduated about a year ago and moved to the city shortly after).

So now after getting a better feel for the various neighborhoods around the city, I'm looking to make the jump into the small multifamily (2-4 unit) market. I've started to run some numbers and am just hoping all you crazy knowledgable people could give me a quick check.

The property I was looking at is actually under contract, so it doesn't look like I'll have a chance this time around, but I know deals come around all the time.

Anyway, to the numbers:

2 flat (each unit is a 2/1)

Purchase Price: $225,000.00

Down Payment -- 22,500 (10%)

Purchase Closing Costs: $5,000

Estimated Repair Costs: $5,000

Monthly income - $2400 (according to rentometer, each unit should probabyl rent for aroudn $1200)

Expenses:

Vacancy - $120.00 (5%)

CapEx - $240.00 (10%)

Sewage - $10.00

Management - $240.00 (10%)

Property Taxes - $379.33

Repairs - $240.00 (10%)

Water - $10

Garbage - $10

P&I - $966.77

Total - $2,216.10

Income to Expense Ratio (2% rule) - 1.02%

TOTAL MONTHLY CASHFLOW -- $183.90

CASH ON CASH ROI -- 6.79%

So, obviously not the 10% or more cash on cash that some deals are on here. Is this just a mediocre deal or are some of my numbers obviously way off? Any feedback is greatly appreciated. I've attached the report from the BP rental property calculator as well.

Links to the listing:

http://www.realtor.com/realestateandhomes-detail/3...

http://www.trulia.com/property/3196836445-3705-N-K...

http://www.zillow.com/homedetails/3705-N-Kimball-A...

https://www.rentometer.com/results/ulAhKSFncjg

BP Calculator Results -- http://www.docdroid.net/file/view/12pt3/kimball.pd...

Thanks in advance!

Keanan

Hey BP!  I just graduated college in May and I'm moving back to the Chicago area (born and raised in the Northwest suburbs).  I've been following Bigger Pockets and listening to the podcast for the better part of a year now and I'm really excited to get started.  

Right now, I'm planning on looking at multifamily properties on the North and Northwest neighborhoods of Chicago.

Looking forward to getting to know you all better and thanks for all you do to make this a great community!