All Forum Posts by: Lewis Yuan

@Thomas Glenn - Hi Thomas, thank you for your feedback! The property is old (90-100 yrs old) but has been recently rehabbed. I did a walk through yesterday and it looks great, although I'll need a property inspector to truly assess everything (particularly the roof). How do you estimate repair costs if not by percentage? Do you usually have your property inspector walk through a property with you and then use your inspector's feedback to estimate future repairs?

@Brent Coombs - Hi Brent, thanks for the feedback! How do you estimate maintenance and cap ex on properties you're considering to purchase? If you do the percentage method, what's a more realistic percentage to put down than 6%?  Also, I'm new to this mortgage stuff, so you're saying that it's highly unlikely to get a 4.54% interest rate on a 20% down conventional 30-year fixed loan? Thanks again for your help!

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey everyone, another multi-family deal here in a B-neighborhood. Ran the numbers based off a $225,000 sale price, which is $24,900 below asking price. Looking to put 20% down and rent out both units and garage spaces x2. There is coin-op laundry but I didn't include that in the income stream. Tenant would pay for electricity and gas. I included water/garbage/insurance/repairs into monthly expenses.

Calculated taxes from http://www.cookcountypropertyinfo.com/default.aspx. Assessed value was $178,790 in 2017. I based the new property taxes in the report from a sale price of $225,000, which came out to:

2018 Assessed Value = 22,500

2018 State Equalization Factor x 2.9627

2018 Equalized Assessed Value (EAV) =66,660.75

2018 Local Tax Rate X 7.270 %

2018 Estimated Taxes = $4846.24 (I rounded up to $5000 to be conservative)

Any feedback would be appreciated! Thanks.

Hey Jeff, the property zip code is 60629.  What would you rate this neighborhood as? Thanks for weighing in!

@Bob Floss II - Thank you so much for the fantastic feedback! That was a good catch with the property taxes, I didn't know that. Thanks for educating me on the subject. How did you find the true assessed value of the building?

Originally, I had not included the heat/gas and electricity as I wasn't planning on living there and just renting out all three units. Why do you think the building is better off as owner-occupant rather than renting out all three units? Wouldn't you have greater cash flow if you rent out all 3 units instead of living in 1 and having to rent out the other 2?

Again, appreciate any and all feedback!

@Bob Floss II - Thanks for the feedback! As for the sources for the itemized expenses:

1. Water/Sewer rates I got from here (https://www.cityofchicago.org/city/en/depts/fin/su...). I estimated 50 gallons of water per day/ per person. Assuming 1 person per bedroom, there are 8 bedrooms in the entire building. So 400 gals/day, times 30 days, then times the water cost per 1000 gallons ($3.95), came out to around $48 so I rounded up to $60 to be more conservative.

2. Garbage rates I got from here (https://www.cityofchicago.org/city/en/depts/fin/pr...) I assumed meter accounts so I went with $60/month for a 3 unit.

3. For home insurance, I went with an average of $1200/annually, so $100/month

4. Property taxes for this building in 2017 were $4,565.91

5. I assumed 1 month vacancy (~8%)

6. I assumed ~$1200 in repairs annually (this may be where I underestimated, how do you usually do repair estimates?)

Anything else I'm missing?

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*This link comes directly from our calculators, based on information input by the member who posted.

I dropped the price for each unit by $50, but added in the additional income from the garage spaces ($100 x 2/month). Also added some more pictures so you can see that the inside is in relatively good condition. Would appreciate any feedback! 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hey BiggerPockets,

I have found a potential deal on a multi-family in Chicago that may cash flow but unfortunately is in a C-neighborhood (and also right next to a major metro airport so maybe noise factor will be bad).  However, the building is relatively good condition (constructed in 1983) and could attract local airport workers that don't want to commute. Rent prices for each of the units are above the average for this area for that reason, but maybe that's too idealistic for this C-neighborhood. Any thoughts?

Thanks for the help,
Lewis

@Marlon Fong - Thanks for the events and meetups link!

@Jeff Burdick - Great to see a fellow East Coast transplant in Chicago. Thanks for linking me up with the local Chicago forums! What kind of investing do you do in the city? Buy and hold, flips, wholesale, etc.?

@Brie Schmidt - Thanks for the welcome! I am looking to buy and hold, multifamily properties mostly. But the search has been rough as this is a seller's market (as I'm sure you know!) and I haven't had much luck finding a good deal that cash flows. Would love to get involved with the local meetup groups in Chicago.

 Hi Nicole, if you could add me, my email is [email protected]

Hi BiggerPockets Forum,

My name is Lewis and I'm brand new to the real estate investing game. I currently live in the Logan Square neighborhood of Chicago, IL. I'm originally from New Jersey (specifically South Jersey, even more specifically off Exit 2 on the NJ Turnpike, for all my fellow Jersey people out there), and went to college in Cleveland. After that, came out to Chicago for medical school but then decided it wasn't for me, so I left and never looked back! Now I'm a business operations engineer for a local pharmaceutical and chemicals company. 

If someone could direct me to the local Chicago forums here on BiggerPockets, or help me find a local meetup in Chicago, I would appreciate it!

Cheers,

Lewis