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Updated over 6 years ago,
Purchasing my first rental please help!
Hi everyone, I need your advice. I'm making an offer on a 2 unit with a finished basement that is ready for me to occupy (house hack) The property is brick, very well maintained, move in ready, newer heater, water tanks and roof placed 2009. The previous owners had it as a single family and took very good care of the building. Also has newer plumbing. The purchase price $314,000. each unit has 2 bedrooms, 1 bath. The basement where I will be staying has a kitchen and bath as well. BTW I'm currently living with a family member.
Ballpark rents in that area are 1,100-1,300.
My mortgage will be around 2,100.
2nd floor pays for heat electricity and gas
1st floor and basement will share utilities.
The area is decent, not to far from the metra.
I'm not expecting cashflow, but it would be nice to live in a nice basement for free.
Should I purchase this property? It's about 25min to downtown Chicago, safe area, family oriented. When I plug the numbers into the BP rental calc. its negative cashflow and negative ROI, does this mean I should not purchase it? PLEASE HELP! = )