All Forum Posts by: Jose Perez

I decided to start investing two months ago after I purchase my first house. I bough my house through HUD.

Are you buying two flats? How are you obtaining finance? Do you recommend any lenders? Two months ago I bought my first house (primary residence) in Aurora, IL through HUD. I'm trying to save money for my first investment property. Any advice will help...

Where in Chicago you end up buying? I'm looking in buying an investmen property in Chicago.

What happens if the homowner doesn't paid there taxes within the 12 month period? Do you get to buy the property a lower price? Let's say the property is worth only 50K but the homeowner owes 100k to the bank?

The bank hasn't approval the short sale yet. Thanks for the advice.

Thanks for your input. I'm bit nervous since is my first investment.

If the deal goes through I'm confident I can rent all three units. Most likely I wil have to charge extra for utilities during winter time.

The property is a short sale. We haven't done a full inspection on the building yet.

I'm pretty sure the basement is legal.

The current owners live on the property.

Please let me know what you think of this deal. It will be my first deal. The house is a multi family building (two flat) located in Chicago - northwest of the city. The listing price is 129,000. I offered 115,000 for it. We currently have the property under contract since April 2012. We are hoping to close in two months. The building has three units if you include the basement. Each unit has two bedrooms.

The average rent for a two bedroom in the location that I'm buying ranges from $750 to $900.

These are my calculation:

1st unit - 750 (tenant pay utilities)
2nd unit - 850
basement - 600

Monthly Income - 2,200
Annual Income - 26,400
Loan - 20 years at 4.50 %
Down Payment - 20%
Taxes - 4,100

The building needs some cosmetic repair nothing major so far. I'm estimating to spend about 6 grand on repairs.

What do you guys think?

Good deal or bad deal?