All Forum Posts by: Cenddie Alaban

@Alex Bok I keep in mind what you advise me to do and I was able to ask the sellers agent why the insurance was too high. She must have forgotten how much she put in the MLS or somebody could have written that listing that says it has a yearly insurance of $2,000. She said that compare insurance companies and ask for quotes.

Hi @Mindy Jensen,

Are you talking about Victor J. Andrew High School in Orland Hills, IL? 

Can you expound your first Post; "be careful with comps in Tinley Park. Tinley Park HS is not comparable to Andrew HS. (My sister just sold her property that was in TPHS district and they would not use comps from Andrew district.)

Why do we compare two properties in different district? What's the significance? I'm lost.

Hi @Crystal Smith the 6 month emergency fund should take care of this right? Are there vacancies more than 6 months?

Hi @Mindy Jensen,

Bigger Pockets have help me a lot from learning about real estate investing and boosting my confidence in buying my first duplex. Actually, I'm following the method of Larry Loftis, author of a book Brandon Turner recommended. I can't directly invest in downtown Chicago, so a little change in direction is needed but the same destination.

Is HS High School? I'm sorry I'm really lost here. I'm investing in a district I know nothing of. Probably because we Home School our kids. 

I'll listen to PodCast # 129 on Sunday on my way to work.

@Crystal Smith Now, I have to be creative in how to pay for the other unit when it's vacant. Maybe, I'll budget for the Vacancy Rate a little higher than 5%? Or maybe get a tenant with a history of staying in a unit for a long time? Thanks for this advise.

@Crystal 

@Crystal Smith Thank you for your advise. I think I will have to live there and you know why as I mentioned in my very first post. 

@Ham Merritt If my calculations are right, BP Rental Calculator shows a cash flow of -$319.37 and -$20.23 ROI. The numbers are still negative after 10 years. I believe that the value of the Duplex will go up and so will the Taxes.

@Paul Hitchings Thank you for your advise. One of my friend who used to be a contractor will go with me on Thursday to look at the property with an inspector. I will be able then to know if it will benefit on a rehab. My first impression when I visited the place is that it does not need rehab only cleaning and changing of carpet on the second floor when the tenant leaves. For future renovations, honestly, I don't have any idea, I will ask my agent, my inspector and my friend latter. How do I feel about renovation? I'm for it, I'm not handy but I fix my own car for years and I love the idea of my kids helping in the renovation.

@Thomas S. Thank you for your effort in giving me advice. Currently, the rent on the second floor is $1,100 and the second floor of the duplex on the other side of the street is advertised at Trulia for $1,700 (and was rented $1,700 as per Zillow). Yes, I think I can raise the rent and rehab the place when the tenant leaves. Is DP, down payment? I will stay in this duplex if I got it for a long time and I can rent the two bedroom in the basement to stay-in caregivers.

@Jeff Valentino I'm thinking that you even know the owner.  I never thought how a homeowner exemption can increase cash flow, thank you for that idea. 

Thank you for removing the doubt I have for my agent. I just felt that this transaction goes too fast compared to my failed offer at Melrose Park. Of course, I should trust my agent more than my coworker, he does not have a house anyway.

Yes, my agent showed me comparable duplexes around the property: 5 bed 3 bath =$240,000; 5 bed N/A bath =$240,000; 6 bed 4 bath =$210,000; 4 bed 4 bath =$250,000; 6 bed 4 bath =$220,000; 5 bed 2 bath =$249,900 and 5 bed 3 bath =$217,500.

I'll ask him for comparable rents.

My Strategy is Buy and Hold a Duplex in which I plan to live in one and rent the other (if I can afford it); and my niche is an area within 50 miles from O'Hare International Airport, Chicago, IL. It took me months before I found a property which satisfy my criteria. The property is at Tinley Park, IL. It has 3 beds and 2 baths on the second floor, 5 beds and 2 baths on the first floor which is duplex to the basement. Total square footage is 2,770, sitting on a 5,095 sq ft lot. It was built in 1979. It has an 8 year old roof. Current owner pays $167/ month for insurance, $100/month for water and $55 per month for scavenger. Rent total is $2,850. The list price is 250K and I offered 210K which the owner accepted. This is a short sale and according to my agent it will take for the bank to decide 3-6 months if they gave it to me or not. I'm going to send the escrow money today but I have a lot of doubts;

1. My rental property calculation shows that at $210,000 purchase and 15% down, the Monthly cash flow is -$94.73 and Cash on Cash ROI is -2.64%. On the other hand, at 20% down, the Monthly cash flow is $76.64 and Cash on Cash ROI is 1.72%.

2. The seller seems to agree with my offer so quickly.

3. Although the Duplex is just 37 minutes away from work, it would take me one hour and 15 minutes to travel per google maps.

4. I started investing without a team; real estate agent, inspector and attorney. So I have to look for an attorney and inspector today since we signed the offer agreement last July 15, 2017 and because my coworker told me not to hire the ones my agent recommended.

So, should I buy this property or not? Your advise is highly appreciated.

@Christian Bors I'm grateful that someone as Experienced as @Anson Young would share his knowledge to Newbies.