Here is an attempt to understand cash flow on a random property

[Frank S.]

Hello,

I'm trying to understand and put to use what I've learned so far. Any and all help is greatly appreciated.

Here is an interesting property in Chicago. This is for an owner-occupied investment.

https://www.redfin.com/IL/Chicago/5717-N-Campbell-Ave-60659/home/13519475

Asking: $400,000
Bid: $375,000 (Unlikely)
Repair: $10,000
I'm an engineer and have experience in construction. So, I can do a lot of the work, but not all.

Property Cost: $375,000 (without repairs)
Down payment: $75,000
Total Costs: $85,000 (with repairs)

Mortgate Amount: $300,000 @ 4.0 $1,432.25 p month
Year One:
Equity $5,733

ASSumed Total Income for the Area (low-high)

1st $1,250 - $1350
2nd $$1,250 - $1350
Basement $650 - $725

Low End

GSI: $37,800
NOI - 50% Rule: $18,900

Cap Rate: 4.9%
ADS: $17,184

Cashflow of $1,716 or 143 p/month

High End

GSI: $41,100
NOI - 50% Rule: $20,550

Cap Rate: 5.3%
ADS: $17,184

Cashflow of $3,366 or 280.5 p/month.

I'm currently renting for $15,600 p/year -  1,300 p/month accounting for all utilities.

Many of the properties I've seen in Chicago have similar trends. This one could be the cheapest in that area, but who knows if they take $375.

I need to run a discounted cash flow to 3,5,7 years. Its seems that at least I get some yearly equity, but I need to figure out how to get it out.

Does something like this make any sence for an Owner occupied building?

Thanks,