Chicago Property in escrow

[Davon Lowery]

Greetings,

I am currently in escrow on this property, more pictures here(for some reason the system is not allowing me to upload pix on BP)

https://www.dropbox.com/sh/sdmi3cyvzxifqau/AAC0cct...

I am looking for a GC to rehab this property for 17k or less. The property is a Brrr strategy property @Brandon Turner i am sharing per your much valued advise. 

I will propose that the tenant pay for the all the utilities and trash, but I will cover the maintenance and the landscaping.

Purchase price: $14,000

Escrow & Attorney: $2,500

Rehab costs: $17,000

Taxes: ($1,307) Chicago buyers get a credit for the rest of the year.

Purchase Totals: $33,500

________________________

Rent: $1,050 proforma (x 12 mos.=$12,600 Gross)

Cap X: 3% (x 12 mos.= $ -3,150)

Property management: 8% ($84 mo X 12 mos.=$1,008)

Maintenance & landscaping: $200 (X 12 mos.= $2,400)

Taxes: $1,307: $109 mo.

Gov. Est. Mar. Val. $71,888

Our Est.ARV $80,000

Annual Net income assuming cap x @ 3% : $5,930 ( /12= $494 mo.)

Annual Net income assuming 100% occupancy: $9,000 (/12=$750 mo.)

Thank you all,

warm wishes,

Davon

[Brandon Turner]

Hey @Davon Lowery

 rock on! 

That's some pretty good rent for a purchase price that low. That should make for some good cash flow. What do you think the ARV will be?

Also, as least according to what I see on those pics, I'm guessing the rehab might come in much higher. I mean, I have no way of knowing for sure, but that looks like a pretty huge rehab. But yeah, definitely get a few bids (which, it sounds like you are.)

Finally -I'd encourage you to plug the numbers into the BP Rental Property Calc and see how it turns out there. You can take a photo of the PDF report and upload that here to BP.