Potential Properties - Advice

[Brendan M.]

Hi, 

I am seeing two 3 unit buildings on Saturday in Irving Park (Chicago) and I wanted to get your guys thoughts on these numbers. Both are 3 unit buildings and it seems like they both cash flow pretty well. 

Property A is a 7 bed/3 bath. Hardwood flooring but would need some work in the kitchen and bathrooms. 

Property B is 8 bed/ 3 bath. Hardwood flooring as well but probably needs some updating. 

I would owner occupy and probably get a 401K loan. I'm thinking each would need maybe 30-40K but I have no experience in that and really just guessing. I like to overestimate costs and underestimate rents just to provide a cushion and to really make sure I'm getting strong cash flowing properties. 

Property A

Purchase Price - $340,000

Total Rental income - $4100 (1200,1200,1700)

Rental income less expenses - $3567

Tax - $5495

P&I - $1777

Ins - $2000

Mortgage (including costs) - $2401

Cash Flow - $1166

Property B

Purchase Price - $439,000

Total Rental Income - $4600 (1700,1700,1200)

Rental income less expenses - $4002

Tax - $5672

P+I - $2294

Ins -$2000

Mortgage (including costs) - $2933

Cash Flow - $1069

Is there anything I am missing? Brie S. sent me a SS that I used for the calculations. Expenses are 13% of the rents. I want to move on these properties quickly if I do like them on Saturday and was hoping you guys could provide some guidance. 

Any help would be appreciated.