All Forum Posts by: Mohammed Hassan

@Mohammed Hassan There are other factors to consider before making an offer. Cap Rates are great but it's way down on the order of importance, personally. Location, location, location. What's the driving economic forces, income levels, and who will be your tenants? What class neighborhood is this? What's the condition of the property? Need any repairs/maintenance upfront to get rent ready? How much $$$$ into this deal vs. $$$ back into your pocket? What is the ROI?

Think long term. Consider your long term goals and if this deal fits those goals make an offer.

Property is in good neighborhood. The near by suburbs housing prices is at peak. The unit is in good shape. It may need painting and new carpet.

Since this will be cash offer. The investment amount would be $240k and return would be around $1250/month (excludes taxes, etc).

0 Votes

Chicago, Illinois

Hi,
I estimated the CAP rate which is about 6% based on below.

Listed price: $240k
HOA: $0

Taxes: $4k/yr

House type: Townhouse
Estimated rental (from realtor): $1750-$1850

Does this deal makes sense for an investment property?

Anything else should I consider?

This would be my first investment property. Hence, I wanted to ensure it is a good investment.

Thanks,

Saif

0 Votes

Chicago, Illinois

All Forum Posts by: Mohammed Hassan

Mohammed Hassan has started 1 posts and replied 2 times.

Post: Should I put in cash offer for this property?

Post: Should I put in cash offer for this property?