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Updated over 7 years ago on . Most recent reply

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?
Most Popular Reply

Duplex pricing aren't based on NOI, but compatible sales of duplexes in the area.