All Forum Posts by: Elyse N.

Thomas S. I wish there were lower priced ones in my area. The cheapest I've seen are 6 units in the low $400s, and those are in gang-infested areas that I don't feel safe going to alone. Would you suggest that I invest somewhere else completely? I'm looking at the Chicagoland area because that is where I live.

Hello! Hoping to get some advice on which property I should place a bid on. Both are in the same town, about 40 minutes from my home. Property 1: listed at $499,900. 6 units, all 1 bedroom, 1 bathroom. Extremely well taken care of. All appliances/cabinets/bathrooms are original (1960s) but functional and look spotless. Each unit has its own small hot water heater. Located on a busy street near a couple other multi units. NOI according to owner is $37,788. Unclear why owner is selling. Property 2: listed at $604,000. 5 or 6 units. 2 1 bedrooms, 2 2 bedrooms, and the top floor was used as a 4 bedroom but can be easily converted back into 2 2 bedrooms. The previous owner lived on the top floor for 30 years and simply opened the doors between the two apartments to make it into 1 large unit (with 2 kitchens). Also extremely well cared for. Some updates done. Also has a 2 car garage that the owner was not renting out. Located in a nice single family home neighborhood. NOI $36,890 according to previous owner. Owner is 80 years old and moved to Florida to retire. Do I go for property 1, which is $100,000 less and currently makes $1,000 more each year, but has less earning potential long term (since it's all 1 bedrooms) or property 2, which is more expensive, currently has 2 empty units (that the owner moved out of), but I think has higher earning potential?

Yes, thanks Chris Eaker !

@Chris Eaker: Here is the link to @Brandon Turner's 4 square method video and worksheet.

I am creating a Google Spreadsheet that effectively calculates ROI for me. I am using the BP 4 square method.

My question is, should the "Total Investment" number be the purchase price or the down payment? I will be paying the mortgage off myself and there are no additional investors.

Also, has anyone created a similar tool for themselves? Have any advice?

Hello! First time hopeful investor here. I live in a fairly expensive area and am looking to purchase a 6 unit building. The buildings within 30 minutes of my home go for $600,000 or more. Buildings 45 min-1 hour away go for much less - $295,000 to $450,000. What area would you suggest? I plan to self manage. My cousin is a property manager and can assist me with finding good tradesmen when needed. I'm wondering how often I should expect to be at my property. Also I have a full time job that I am staying at. Thanks!