Chicago .... windy investing!

[Bartek Marciniak]

My first 3 unit apartment building .... purchased at $235k with 3.5% down, seller paid all closing cost, my initial investment at closing was $9186. Exactly the same building right next to mine closed a day later and sold for $250k ....

Anyway; look at my numbers below and read explanation ...

PGI = 2470

vacancy loss = 4% 100

EGI = 2370

property tax = 309.4

homeowners ins = 156.6

utilities(common/water)= 165

repairs and maint = 10% 250

NOI = 1489

debt service: PI = 1101.6

monthly PMI 253

positive cashflow 134

After 6 months of research and looking at properties in the Chicago area, it was the best I could get. It's not easy to buy an apartment house with very little down that will cash flow. If you throw 20% down that is another story .... you will get a lot bigger cash flow but your returns will suffer .... I am going for high COCR .... I don't put to much emphasis on Cap rate. Numbers above are pretty conservative .... read further explanation .....