New Investor looking for advice - Logan Square, Chicago

[Lindsey Matejak]

I'm a new investor and have been crunching the numbers for weeks on a property we want to close on, but realized this week I had some calculations wrong that are making my numbers significantly different than I thought. The goal was to rent three of the units and live in the 4th--ideally having the rents cover our mortgage and expenses completely.

The property was completely renovated this year, so there shouldn't be any significant maintenance costs, but insurance and taxes are quite high because this is a 3 unit plus additional coach house with garage on first floor and unit on top floor. From my research, these are top rents we could get in the area as the market currently stands.

Could someone look at our calculations for a property and give us some insight if this is a good deal for Chicago? The property value will likely go up in the next few years because Logan Square is a hot market and so should rents but want to make sure its a good deal now. Please help. Thanks in advance!

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[Frank S.]

"The property value will likely go up in the next few years because Logan Square is a hot market and so should rents but want to make sure its a good deal now

 It sounds like your crystal ball is better than mine.  Will it be a good deal in 5 years? 

http://chicagotonight.wttw.com/2016/03/29/why-seco...

It seems you covered most expenses.  Do you have gas or electricity expenses?

Will the maintenance and repairs at 3,294 account for future capital expenses like furnaces, roof, tuck-pointing, etc? 

Check $1,600 for water, it may be higher?

Check garbage collection fees for +3 units.

It seems the average income is $1,525 per unit ( x4). Is this accurate?  Did you confirm the income will be as assumed?

If everything clears, it looks fine for a city dweller.  If you love the area and want to stay there for many years.  Are you staying there for a long time?

Congrats, 

Frank