All Forum Posts by: Terry Hegarty

Brianna This property is in Avondale near Elston and Addison.

Frank I'll be renting out the units myself since I have my license. So no paying a listing agent. I agree about overestimating

Also is it common to do a 30 year mortgage rather then a 15 year mortgage. I know the mortgage payments are higher with a 15 but would anyone recommend a 15 year over a 30 year mortgage. Also do I need to determine cap rate?

Frank, I forgot to include repairs which are probably 10K. Mostly minor cosmetic fixes. It was completely rehabbed in 2007 and well maintained since then. I've heard 10% vacancy rate is more standard. I was surprised when she only used 5%. Also she had a maintenance section but put 0%. Wouldn't 20% be too high? I should factor in at least 10% though

Hey everyone,

So for the past 2 months my brother and I have been looking for 2-4 unit property in Chicago. Our plan is to live in one unit and rent out the other units. We found a place that is listed for $250,000. It's move-in ready. There are 2 legal units and rentable basement. There is a two bedroom and a one bedroom and a basement unit with 2 bedrooms but no kitchen. Overall, my realtor concluded we could get $2400/month in rent if fully rented out (In reality it would be less since my brother and I would be living in one of the units). Basically this is her analysis and I'm wondering what you think...

List Price: $250,000

25% Down Payment: 62,500

Mortgage Amount: $187,500

Gross Monthly Rent: $2400

Gross Yearly Rent: $28,800

Expenses

Taxes: $5058

Insurance: $1400

Water: $1300

Gas and Electric is separate

Vacancy (5%): $1440

Total Expenses: $9198

Net operating Income: $19,602

Mortgage Amount: $187,500

Monthly Payment (4.5 interest rate, 30 year fix): $950.03

Yearly Mortgage payment: $11,400.36

NOI/ Yearly Mortgage Debt: 1.72

Two things I've never heard of NOI/ Yearly Mortgage Debt. Also she said she did not plug in a cap rate or GRM because on 2 units these numbers are not the best to use for comparing 2 unit properties one to another, as they can very so widely from property to property. I thought cap rate and GRM were important to evaluating 2-4 unit properties. Any thoughts would be appreciated.

Hey everyone,

So for the past 2 months my brother and I have been looking for 2-4 unit property in Chicago. Our plan is to live in one unit and rent out the other units. We found a place that is listed for $250,000. It's move-in ready. There are 2 legal units and rentable basement. There is a two bedroom and a one bedroom and a basement unit with 2 bedrooms but no kitchen. Overall, my realtor concluded we could get $2400/month in rent if fully rented out (In reality it would be less since my brother and I would be living in one of the units). Basically this is her analysis and I'm wondering what you think...

List Price: $250,000

25% Down Payment: 62,500

Mortgage Amount: $187,500

Gross Monthly Rent: $2400

Gross Yearly Rent: $28,800

Expenses

Taxes: $5058

Insurance: $1400

Water: $1300

Gas and Electric is separate

Vacancy (5%): $1440

Total Expenses: $9198

Net operating Income: $19,602

Mortgage Amount: $187,500

Monthly Payment (4.5 interest rate, 30 year fix): $950.03

Yearly Mortgage payment: $11,400.36

NOI/ Yearly Mortgage Debt: 1.72

Two things I've never heard of NOI/ Yearly Mortgage Debt. Also she said she did not plug in a cap rate or GRM because on 2 units these numbers are not the best to use for comparing 2 unit properties one to another, as they can very so widely from property to property. I thought cap rate and GRM were important to evaluating 2-4 unit properties. Any thoughts would be appreciated.

Hey Mat! I'm new to REI in Chicago too. Already I've learned a lot from this site.

Hey everyone, I'm a new investor in the Chicagoland area. I've done a few wholesale deals with help from a mentor in his own real estate investing company but I've been looking to get into fix and flip properties. I've been a realtor for about 6 months now, and looking to continue that while developing a fix and flip business as well. I love reading the posts on this site and really learned a lot. I just wanted to reach out and introduce myself and see if there is anyone available who can help me grow my business.