All Forum Posts by: Paul Cijunelis

Just to update this we did a LLC. It didn't appear either would have any significant advantages. So we used the LLC due to the "series" being an option in IL at some point in the future. Interestingly enough, we are incorporated in IL, but all our properties are located in another state. Good luck to those starting out. We are at the 3 yr mark, 2.5 yrs with property and we've already purchased 3 additional properties off the profits, alone. Things have been going well.

DavidG, sure I agree. I am not a seasoned veteran so of course curiosity is getting the better of me as I run through these evals. I appreciate all the responses. If anything they confirmed what I was already doing so its good to see I have this stuff straight.

Forgot to mention I got 48% on yours for expenses FYI. I was using seller supplied (listing info) numbers.

David, thanks. I have a xls similar, but didn't have evictions and snow on it so will add. I will take your advice and look for some 4units due to the easier loans and being new it is likely the right call...

Chris, sorry I accidentally hit "new topic" instead of quick reply to my other topic on GRM...

Strange, what's with the hidden posts from the guy I was communicating with?

The costs include previous owner's cost of insurance and I haven't contacted anyone about commercial loans yet (I'm still working on all this). The loan is set at a 30yr fixed using typical values from like bankrate.com or similar. I was originally quoted a $300k loan for another property for 3.7% but that was residential so commercial will prob be 4.5-5%? I have 4.5% in there now...

Purchase Price $510,000.00
Improvements $5,000.00
Number of Units 6
Price/Unit $85,000.00
Price/Unit Improved $85,833.33
Total Rents/Month $5,050.00
Expenses % of GI 29.9%
Vacancy 7%
Property Taxes $8,000.00
DownPayment 25%
Loan Percentage 4.50%
NOI $38,248.00
Cash Flow $13,385.50
Cap Rate 7.28%
COC Return 9.38%
Total ROI 11.56%
Property Tax vs Gross 13.20%
GRM 8.67
2% Rule 0.96%

Here's what my datasheet is spitting out....7% is my estimate, 25% can be changed, etc...

Whoops hit new topic instead of reply...

Definitely looking at all expenses...thanks for the reminder.

As far as a +10% COC return, in Chicago area (and it may be that I am new or due to only looking at short sales/foreclosures), a 10% I haven't seen, ever.

I have a few at mid-9%.

I gotta find a better way or be happy with 9%. I'd be interested to hear about other baseline averages in the Chicago area. Anyone?

Definitely looking at all expenses.

As far as a +10% COC return, in Chicago area (and it may be that I am new or due to only looking at short sales/foreclosures), a 10% I haven't seen, ever.

I have a few at mid-9%.

I gotta find a better way or be happy with 9%. I'd be interested to hear about other baseline averages in the Chicago area. Anyone?