All Forum Posts by: Natalia Wright

@Dorothy Wulf I have a concrete pad already placed, any suggestions on contractors?

Hi Jason - I'm having a difficult time finding a 3 flat that I would feel safe and comfortable house hacking. From a brokers perspective, do you have any suggestions on areas with positive ROI? I'm a registered nurse, looking to make my first home purchase/investment. I'm also new at real estate and open to any and all suggestions. Also, should total rent from property be 1% of the purchase price?

Hi Brad - thank you for taking the time to work through this with me. Here are the numbers for a 3 unit in Chicago: 

Purchase price: 795,000

Closing cost: 7,000

After repair value: 795,000

Down payment: 20%

Amortized over: 30 years

Vacancy: 8%

CapEx: 10% (estimate, not sure)

Garbage: 1%

Management: 7% (estimate, not sure)

Property taxes: 798 month

Repairs: 8% (estimate, not sure)

Water - 4%

Insurance: 180 month

After analyzing, according to the 50% rule total monthly cashflow would be -1,831.36. I did include rent for the unit I'd live in. I want to make sure I'm analyzing correctly. Also, what is your suggestion as far as analyzing? Do you judge a "good" deal via the 50% rule, Cap rate, or Cash on Cash ROI?

I'm hoping to gain insight and knowledge to purchase a (owner occupied) multi-family unit. I think I'm doing something wrong when using the rental property calculator. Each time I've analyzed, the ROI is negative, and properties have yet to meet the 2% rule as well. I know with practice and proper utilization of this site I will get better with analyzing and more knowledgeable. With multi-family units, do I focus more on the 2%, 50%, or Cap rate? Also, with owner occupied, do I add rent from the unit that I occupy?