West Town deal with BP member closed!

[Henry Lazerow]

Excited to have had the opportunity to help a BiggerPockets member buy their first investment property a 4 unit in the eastern part of Chicagos West Town neighborhood. Just closed this Wednesday!

It was a rocky road with the first property under contract the leases came out showing lower rents then we were told and decided to break contract. Worked out being the right choice in the end when we found the perfect property. 

For their first purchase my clients wanted a safe "turnkey deal" the next project they are looking at will be a value add where can input the BRRR method and be on a path to building a large portfolio of rental properties.

Property details....

Gut rehabbed building with condo quality finish in 2011. New roof 2 years ago. 

4 units with 2 in front and 2 in large coach house. 2x: 2br 2ba, 2x: 2br 1ba 

Purchase price: $943k - Gross rents: $7200 with market rate being about $7800

At 25% down the mortgage payments came out to roughly $4600 bringing in a nice bit of cashflow. One owner of the LLC was out of Cali seeking higher cash on cash out of class A properties then can be found in his hometown.

Looking forward to seeing them progress!

Some photos of property....

[Mark Shelstad]

What does the City of Chi tag the owners with for property tax? What about insurance costs-where do they fall?