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Updated over 7 years ago,
Property Analysis Help South Side Chicago
Hi all, I recently received a deal on a property on the south side of Chicago in Woodlawn neighborhood that is a duplex and in good shape.
2 flat with 3 bed/1bath and 2 bed/1bath with 2 bed unit vacant (states was hoping to get buyer that would move in and rent other flat) and 3/1 unit rented for $900 currently
Asking price: $150k
Downpayment: $37.5k (25%)
P&I (4%): $528/mo
Property tax: $271/mo
Insurance: $117/mo
PITI: $912/mo
Expense: Snow removal/lawn $50, Yard cleanup $50
Can likely rent out second unit for ~$850/mo but currently vacant - ? should I use this to calculate purchase price?
Income = $900 + $850 = $1750
Expense = $912 + $50 + $50 + 5% vacancy ($87.50) + 5% CapEx ($87.50) - will manage myself = $1187
Closing cost = ? ~7k
Balance = $563
Cap Rate = 4.5%
Cash on Cash = 15%
No repair cost needed likely. Seems like an alright deal although this is assuming the rental of the 2nd unit. What do you guys think?