Newbie needs help analyzing a specific Property

[Mitul Gandhi]

I am working with a realtor on my first purchase. I told him I only have 15K to put down and needed help finding different ways to fund it. I am a first time home buyer so I can put the 3.5% down with an FHA loan.

I am looking at this property here 3928 N Bernard St CHICAGO, IL 60618

I was hoping someone could help me analyze this property .  

I was trying to use the BRRR calculator but im stuck at estimating ARV -

I'm having my realtor pull comps for me right now. I downloaded the ARV estimator word document- one thing I didn't understand is how do you know how much to adjust upward or downward. The example he gives is subj house is 1940 SQF while Comp is 2650 sqf he subtracts 8000 from the comp.

[Eric M.]

Originally posted by @Mitul Gandhi:

I am working with a realtor on my first purchase. I told him I only have 15K to put down and needed help finding different ways to fund it. I am a first time home buyer so I can put the 3.5% down with an FHA loan.

I am looking at this property here 3928 N Bernard St CHICAGO, IL 60618

I'm having my realtor pull comps for me right now. I downloaded the ARV estimator word document- one thing I didn't understand is how do you know how much to adjust upward or downward. The example he gives is subj house is 1940 SQF while Comp is 2650 sqf he subtracts 8000 from the comp.

Well, ARV is more of an art than a science. I find 2 and 3 flats that need some work to be the most difficult to value. I have more experience with SFH. But a couple of comments.

Yours seems to me to be listed right at value or a little better. I do wonder why both units are vacant. Be slightly wary. If the seller won't guarantee the legality of the basement and is overstating square footage, I would lean toward the basement being not legal.

Tax records and other buildings in the area indicate the SF is 2082, not 2650. They are probably adding the possibly illegal basement?

I don't know interior conditions (your listing doesn't have interior pictures, not a good sign IMO) but good comps look like

3915 N Saint Louis Ave at 425  est 2400 gross rent

3837 N Spaulding Ave at 420  $2300 gross rent

3748 N Spaulding Ave at 375, not brick but nice inside

If you are planning to do a big rehab, 3837 N Central Park Ave looks interesting at 600 as a comp. Gross rent 3500

Again, 2-3 flats are not my specialty.