All Forum Posts by: Asha Holly

thank you everyone for your helpful insight. I was already thinking we should halt the negotiations at the point I found out the property needed that much put into it. the rents could potentially go up to $1050 according to rentometer. But according to my own research this property would have to be almost "newer/rehabbed" on the inside to merit this kind of cash flow on 2 bedrooms. Which is why I take rents ether with a grain of salt until I do my own calculations/research & TRULY compare apples to apples. The only reason I felt comfortablewith this property to begin with was I was hoping to do a little remodeling & raise rents to $950-1000. But with the overall cost of around $30k. This seems to suck up any profits we may have.

The property is in the Dunning area of Chicago north side so not anticipating a huge increase in appreciation.

At this point we have passed on this property & will keep our ees open for future investments. I wanted to thank everyone again for their wise advice which is very much appreciated to new investors. This site is beyond words helpful :) 

Hello

My husband & I are in negotiations and need some help deciding if this property is worth the money at this point. We learned that there are several things in need of maintenance that we were previously not aware of.

I am putting down 20%.4.375% on 30yrs for a 321,000 3-flat property. (Same one next door is on sale for 360,000 which I think is WAY to high asking price)

we are now not certain of the property we have been in negotiations with. For the reasons being. :

in need of replacement kitchen cabinets, all bathrooms rehab in near future (from 1960's, slightly response/painted since then) Totaling about $20,000-$30,000 kitchen & bathrooms for all 3 floors)

New roof in 10 years- $15,000. Still has old boilers (2). 1 new.($5-10,0000)

thanks everyone for your great insight! Sorry for the delayed response I'm on a much needed vacation ;) we are close to closing in on negotiations and need some help deciding if this property is worth the money at this point. We learned that there are several things in need of maintenance.

First let's talk rates: Danny, I agree and will start with my own bank(s)/lenders. However I've seem that most of them need 25% down ans I can only do 20%. With that being said the broker I have is offering 4.375% on 30yrs 

This was his breakdown:Rate – 4.375% no points

Lender fee - $1100 (this covers fee/credit/tax cert/flood cert)

Appraisal fee - $595 (2-4 unit) 

a 2 or 3 unit so your total lender related costs would be: 1100 + 595 = $1695.

we are now not certain of the property we have been in negotiations with. For the reasons being. in need of replacement kitchen cabinets, bathroom rehab in near future (from 1960's, slightly response/painted since then) Totaling about $20,000(kithch & bathrooms(

New roof in 10 years- $15,000. Still has old boilers (2). 1 new.

Hello,

My husband and I are new to the site and have just put in an offer on a 3-flat(owner occupied) property for $329,000.  We are looking to put preferable 20% down with a good rate. I noticed most brokers want 25% down which we would be willing to do if we had to.

If anyone knows of any brokers/banks in the Chicago area that have great rates and good mortgage brokers we would be all ears.

Thank you,

thankyou all SOO much for your insight & expertise. there is So much that goes into this. i looked on rentimeter & it says we are "reasonable" to ask up to $1000 for the 1 bedroom. & up to $1500 pushing 1600 for the 2 bed.

if we bid lower at 280-285.000 it could possibly make sence IF we get those rents. i am at wrk now but will do anither reasses of the scenerios when i get home. i do believe it was a total gut rehab new everything that Joel mentioned.

thanks again everyone i absolutely am thankful for you sound advice!!

We found a potential property and were hoping some of you season veterans could take a quick peek at it and let us know what you think about the breakdown of the numbers?

We want to go into contract tomorrow..

list price.is $309.000
we are putting 20% down at 4.375 interest.
realtor "says" we can get $900 for one unit & $1500 for second for a 1 bed garden & 1 bed plus den for 2nd floor.
i think thats a bit on the higher side of rent but b/c the property has been completely gutted and rehabbed by investors it is possible for this "hotter neighborhood"
if we estimated on lower end of rent bout $600 & $1400 we put the out door cash flow at $140 per door.
we are putting an offer in but not exactly sure what to go in with. thinking $285-290.000
if you could take a look i would greatly appreciate it as we really like this property & hope it looks good enough that the numbers make sense.
i plugged numbers into an investment property calculator & canshow a spreadsheet to look at if that would give you a better understanding.
would so appreciate any advice you have!!
thanks in advance!!