Deal Analysis for a Chicago multi family property (3 of 30)

[Marshall Shen]

Hi there,

I'm doing a 30-day deal analsys challenge where I analyze one deal per day. This is my 3rd day :)

Based on the asking price, I estimated it will generate a negative annual cash-on-cash return, assuming 20% downpayment. Can someone help review my analysis and provide any feedback?

The detailed analysis can be found here: https://bit.ly/2yDZz9P

Thanks so much!

[Tom Shallcross]

@Marshall Shen, yes this deal doesn't work.  Two additional points to assist as you keep analyzing:  

the 9k in taxes is based on an assessed amount of 469k so underwrite that your taxes will be going up exponentially - you can look up that info here: http://www.cookcountypropertyinfo.com/

More of my own opinion, but Western is like an expressway there.  I've purchased properties on main streets, but Western is a whole 'nother beast that far North.  I would assume it would eliminate a section of tenants who wouldn't want to deal with it.