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Updated almost 9 years ago, 02/02/2016

User Stats

72
Posts
12
Votes
Edouard Pierre
  • Chicago, IL
12
Votes |
72
Posts

Good BRRRR deal? Chicago 2-Flat with room for improvement!

Edouard Pierre
  • Chicago, IL
Posted

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!

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