All Forum Posts by: Jack Plantin

This is awesome to see! I've been considering buying an old two-flat in Chicago and house-hacking it, but so many of them have MIL basements that are about 6 feet tall in reality. I've heard about digging out the foundation to make ceilings taller, so it's great to see that people are actually doing this. How much did you budget total for basement reno?

You might have to pay a bit more if she wants to pocket 65k after her real estate agent's fees and title fees. A purchase price of 70k would be around $500 PITI + the additional $300 for property management, maintenance, and parma fee (Still 180-200 a month cash flow). Looks like a good deal for 65k or 70k, especially if the tenant plans on staying.

I reconfigured the numbers. Added 15% for capex and repairs, $3500 for closing costs, $900 for W/S/G (Should I make tenants pay this themselves in a SFR?), 10% vacancy, and it returns 7.5% COC at the $89k buy price. If they accept an offer of $80k (unlikely), then I could have COC of 10%.

Quick question Jaysen, do you allocate that 15% capex/repair money to another account somewhere? What do you do with that money if it exceeds what you actually spend?

 Thank you. Good to know I should be more realistic about down payment. Will talk to more agents in the area to find out if rentals work well. And will run more specific numbers now with capex and repairs.

 I was using the 50% rule, but I realize now it should be 50% of rent income which would be $500 a month in expenses, not $250. Still seems excessive for a 2 bed house. What percentage do you factor in for capex and maintenance on SFRs?

Looking to use a part of my savings to pick up an investment property and become a landlord. Let me know what you think of this property.

1000 SQFT 2Br/1Bath in Hammond, Indiana. 7133 Hohman Ave. Supposedly good rental market for blue collar Chicago workers. B class city per Niche.

Asking price: 89k

DP: 20% 17.8k

Rehab budget: Inside is good condition, but dated. 3-5k for new appliances, fixtures, countertops, etc.

PITI: $485

Average rent in area: 1-1.2k

With 50% rule that's around $250 a month cash flow.

Is it worth it to try for 5-10% conventional loan since it's not distressed? Best case scenario would be to get it for lower than market value to BRRRR it, but don't see that happening since it's on market and not distressed.

Let me know if I'm on the right track or there are other variables I'm missing.

Great job! I imagined all duplexes in that area to be 500k+, so that's fantastic. How much do you pay out of pocket after rental income from the 2nd unit? I'm looking to do the same thing in Chicago, IL next year.

 Thank you, I have some reservations getting another pre-approval when I don't plan on buying for another 3 months when things settle down. But I will reach out to some lenders to see if it's possible.

I'm looking to buy and hold my 1st SFR in the summer when the situation blows over and tenants can afford rent. Aiming for 2/3 beds that are 100k total max, but obviously will be attempting to get distressed properties for much lower around 60k.

My goal is to put $5k down, have around $500 PITI, reserve $10k for updating kitchen/bathroom, and rent out for $800-1200 a month.

Is it possible to get 5-10% conventional loans, so I have enough cash reserves left over to self-fund renovations and basic maintenance?

Did you mean $25,000 down payment? Are the other units rented out already? How much is the PITI with mortgage insurance?