All Forum Posts by: Nate Boyce

Edward thank you for the reply. The location is in what I would say is a mid to low C area. Not a lot of crime on that side of town. The trend doesn’t show a lot of appreciation in this market though. I do believe the current owner pays water, sewer, and garbage, so I do need to add that to the expenses.

Thank you for all of your replies. Here are the numbers that I am using for the property.

Asking price is $185,000 and I’m using conventional lending numbers. Taxes are $6500 annually. I’m using a rent roll of $3000/mo. There is also coin operated laundry in the building but I have not figured that in to the income.

I made a couple of changes from my original post, but it seems too good to be true haha, idk.

Hello Bigger pockets community. I am just beginning my endeavor in real estate investing, and I have been trying to soak up as much information and knowledge as I can find. I am located in the Midwest about an hour south of Chicago. I am interested in finding multi family properties because I like the idea of the security blanket that multiple tenants offers me. 

As I look around my market I have found a couple of 4 unit buildings that really spark my interest. The problem is that when I plug the numbers into a cash flow calculator they honestly seem almost too good to be true. I’m coming up with a cash on cash return of almost 21%. Is this really a feasible number? Or am I missing something in the calculation? I plan on managing the building myself at least to start off so I’m not figuring management costs, but the numbers I’m getting are showing a cash flow of around $12,000 per year. 

I really want to pull the trigger on this, but capital is also an issue for me to get conventional lending. Anyone out there have any advise for my situation? Thanks