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Updated almost 6 years ago,

User Stats

14
Posts
4
Votes
Ariella Sherman
  • Chicago, IL
4
Votes |
14
Posts

Is this an OK first deal?

Ariella Sherman
  • Chicago, IL
Posted

What do you think of this deal? 

$1,100,000 for a 6 unit multifamily, newly gut rehabbed, in Chicago 60645. Rental income is 9000 + 400 for laundry and parking. Expenses are 2834/month. 

This would be my first deal. It doesn't need to be the best deal of the century, but my goal is to get started and not get ripped off. Looking to pay market rate.

Right now 2 units are rented, 1 for 1250 and 1 for 1550. Seller claims he will fill the other 4 units in the next 30 days @1650 each. My concern is that rents are high now because its all brand new, but in a few years when it's not brand new anymore, rents will go down to 1400 each. Also, because it's a fix and flip, I'm concerned what quality of work was put in and that I won't find out until it's too late and falls apart. How can I figure out if this is a real concern?

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