Hello BiggerPockets - Property Analysis

[Scott Sanford]

Hi BiggerPockets, 

This is my first post to the forums. I am very excited and driven to find my very first REI property. My goal is to find a 2 flat in a Chicago neighborhood and live in one of the units (House Hacking).

I found a property and would like some feedback on the numbers to make sure I am doing this right. Please let me know if my numbers are off or am I missing any expenses. I do plan on managing this myself but also added 10% management fee. 

Location: Logan Square, Chicago IL 60647

Foreclosure Listed at: $224,900

Purchase Price: $230,000

Estimated Repair Costs: $10,000

Income: 2 3-Bed Units x $1,500 = $3,000 

Parking: 2 Spots x $100 = $200

Expenses: 

• Electric: Plan on Tenant paying
• Gas: $120
• Water & Sewer: $120
• Garbage: $20
• Repairs & Maintenance: 5% ($150)
• Vacancy: 10% ($320)
• CapEx: 5% ($150)
• Property Management: 10% ($320)
• Taxes: $250
• Insurance: $120

Total Operating Expenses : $1570

Mortgage (30 years 3.75%): $852.13

Total Expenses: $2422.13

Monthly NOI = $777.87

I really want to make sure I am conservative with my numbers. Any feedback is recommended. 

[Frank S.]

Welcome to BP!  

If the building only needs 10K and you bought at 230K, you are golden in Logan Square.  That area is hot.  What's the building condition? Brick, frame?

Confirm repairs, and do a throughout CAPEX analysis. Check infrastructure, water heaters, roof, windows, electrical, plumbing. Make sure your CAPEX is what you assume.

3br at 1700 seems a  little low for Logan, but it depends on the condition.  Is this place a A, B, C, or D quality? 

Double check your taxes at $3K. Do they match other properties in the area?  Was this an owner occ. building? Did they have senior discount?

Insurance, shop around. I use REI Guard, but never had a claim through them. So, who knows how good they are.

Congrats!