All Forum Posts by: Scott Sanford

Thanks @Malcolm Douglas! This is very helpful. And yes Chicago is very competitive I've been finding out.

Hi BP - 

I am in the process of investing in a 2 flat (small multi family) in Chicago and seeing my very first property this week. I want to make sure I am prepared when I am seeing the property with my realtor. 

What should I expect when visiting a property? Is the seller usually there? (found on MLS)

What should I look for? 

What specific questions should I be asking (or you ask) when seeing a property? 

I want to make sure seeing the property is not a waste of time. 

Welcome @Tyler Peterson to BP!

I would definitely first read The Book on Rental Property Investing by @Brandon Turner. It's a great general as well as detailed book on REI.

Also just search for general questions in the BP forum here. Everyone is very helpful. I am in the process of house hacking a 2 flat in Chicago for my first property. I think it's a great first step to getting your feet wet, starting small, and getting landlord experience. 

Scott

@Larry Smet - Thanks for the good tip! I will make sure to ask them. 

Well my realtor told me that the property was "Pending" and under contract. Darn! 

I am hoping by winter too as well. My current lease is up in end of Feb so I have some time to shop around. 

Thanks for the reply @Frank S.. 

I would probably give the building a B- rating. Definitely could use a some paint job and maybe some new appliances but almost looks rent ready from the pictures. The $1,500 is low just for conservative figures. Looking at Craigslist rents for 3Bed in the area go for $1,700 to $2100 around the block.  

It's a bank foreclosure is all I know.

The building is Aluminum Siding. Built in 1908. Taxes in 2014 were $2,613 but I will look at some other comps. 

Thanks for all the other advice! 

Hi BiggerPockets, 

This is my first post to the forums. I am very excited and driven to find my very first REI property. My goal is to find a 2 flat in a Chicago neighborhood and live in one of the units (House Hacking).

I found a property and would like some feedback on the numbers to make sure I am doing this right. Please let me know if my numbers are off or am I missing any expenses. I do plan on managing this myself but also added 10% management fee. 

Location: Logan Square, Chicago IL 60647

Foreclosure Listed at: $224,900

Purchase Price: $230,000

Estimated Repair Costs: $10,000

Income: 2 3-Bed Units x $1,500 = $3,000 

Parking: 2 Spots x $100 = $200

Expenses: 

• Electric: Plan on Tenant paying
• Gas: $120
• Water & Sewer: $120
• Garbage: $20
• Repairs & Maintenance: 5% ($150)
• Vacancy: 10% ($320)
• CapEx: 5% ($150)
• Property Management: 10% ($320)
• Taxes: $250
• Insurance: $120

Total Operating Expenses : $1570

Mortgage (30 years 3.75%): $852.13

Total Expenses: $2422.13

Monthly NOI = $777.87

I really want to make sure I am conservative with my numbers. Any feedback is recommended.