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Updated almost 9 years ago, 02/02/2016
Good BRRRR deal? Chicago 2-Flat with room for improvement!
Hello all,
I'm looking to purchase my first personal BRRRR deal in Chicago and I'm a real estate agent. Here are the specifics:
Property Type: 2-flat sold via HUD. (First Floor: 2bd/1bath & Second Floor: 3bd/1bath)
Listing Price: $299,900 - very good/competitive price
Closing costs: $7200
Commission as "buyer's agent": $5800
Taxes: $4,582 with no exemptions for the moment
Repair Cost: $15K
Rental Income for 3bd/1bath: $1300-1500 (Chicago's rental market is skyrocketing)
Insurance: $3000/yr
Mortgage: $2000 including insurance/taxes
The basement can be finished and the rentable 3bd/1bath could duplex up into the massive unfinished attic. These are both expenses that I have not put together or factored in yet, however they're a possibility in the long run. What other things do I need to factor into my calculations at this point or how/which calculator do I use on BP to analyze this deal?
Thank you!