All Forum Posts by: Yanto Njam

Thank you for all the feedbacks. It makes lot of sense to get a loan to finance the building and use the cash for another building. 

@Joseph ParkerThat is a great cash flow. Where do you find this deal? Thanks

@Joseph Parker What is the annual rental income for 36-unit (all 2bd units) sell for $730k? Thanks

@John Warren Does 22 unit in Cicero require any remodeling cost? How much can you collect rent annually if they are fully occupied? What is the vacancy rate in the area? Thanks

I agree with @Nate Bell I stay away from HOA. All of the properties I own has no HOA. It is a nightmare to have zero control over your own condo at least in Chicago. They are many restrictions and what you can and can not do. I want to have a full control over my properties and I can find a way to save the cost that I do not find it necessary. With HOA, you will have no choice but pay with whatever they decide to do. How much is your monthly HOA?

The reason I am asking this question because I found this 6 units building for my investor who paid cash and want to know if this is a good ROI for them. I found the building and had my contractor did some work and then increased the annual rent from $82K/annual to $101K/annual. I do not know what is considered great ROI out there for housing investment.

Paid all cash and COC ROI is 8.67% based on BP Rental Report Calculator. Any suggestions to make it better ROI? Should I get a loan for this to maximize ROI? Thanks

Being an investor, my first goal is always cash flow. If I do not have a good cash flow while relying on appreciation, anything can happen to the housing market. It is currently doing good now but does not mean it will continue appreciate down the road. It is no difference than buying a stock market that rely on the current market. If housing market down, you will have no choice but to rent it at loss. With a good cash flow, it will allow you to keep the cash and use it to buy another property and also it will allow you to get a loan because you have a good positive cash flow. Another drawback for you as you said you want to move to California and that means you will hire Property Manager to manage your condo and you will have even less cash flow. My suggestion is to sell it while you are up and invest it in California. 

It is located around Hermosa and Belmont Cragin. It is a nice location and upcoming. What do you think of the ROI? Thanks

Hi,

I have 6 units building that was purchased for $780K in Chicago area. Bought it early this year and bumped up the rent from $82K/year based on the previous owner to $101K yearly rental income. 

The property tax is about $9,300/year. 

Water and Garbage about $6,000/year. 

Electricity about $360/year. 

Landscaping maintenance about $2,000/year. 

Repair maintenance about $8,000/year

Insurance about $2,500/year

Gross Net about $72,840/year

Please let me know if this is a good ROI and if it is wise to keep it for a long term with this ROI? Any input or suggestions appreciated. Thanks Yanto