How To Know If I'm Getting A Good Deal

[Anthony Fecarotta]

I'm getting close to start searching to buy my first property (multi family house hack around Chicago), and I'm wondering if there is a checklist I should be making before viewing each property? Also, what should I do to look for comps or similar cash flow producing multi-family units in that area?

[Victor So]

@Anthony Fecarotta

Hey! I think there are different ways to do this. I’ve posted a similar question before. It seems the consensus is,

(1) Get to know a realtor (unless you’re a realtor yourself)

(2) Have your realtor get you comps on the property as well as rental rates in the area. Then, run the numbers between your monthly costs (PITI + expenses) and rental income and see if you'll cash flow when you rent the unit(s) out. You can also do a quick check on Rentometer.com for rental rates in the area.

I recently bought a duplex. I made sure I purchased the property for under market value by looking at comps. And then, I looked at rents around the area to see how much cash flow I would make.

Long story short, I’m going to live in one unit, rent out one unit, and airbnb my finished basement and other rooms that I don’t use. I think I can break even or cash flow ~100-200 bucks.

Hope this helps!