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Updated about 12 years ago on . Most recent reply

User Stats

100
Posts
85
Votes
Josh Dane
  • Rental Property Investor
  • Chicago, IL
85
Votes |
100
Posts

Multi-family investing without 2% return

Josh Dane
  • Rental Property Investor
  • Chicago, IL
Posted

I am new to this site and wanted to thank everyone for the help so far.
I am looking into purchasing a 3 flat or 4 unit home in Chicago. I would live in one unit and lease out the others (will qualify for FHA mortgage and put down 3.5%). However, I can't seem to find a place that follows the 2% rule (50 times gross monthly income = Purchase Price). Is this a bad investment then? I was hoping just to build equity (and hopefully some appreciation) in the home and sell in 5-10 years. I can't find any habitable multi-family homes in Chicago (at least the nicer neighborhoods) which follow the 2% rule. Am I missing something and should I not even consider this?
Thank you guys again.

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