Hey all - I'm looking at multi-families in Chicago for my first deal and went to view this 4 unit on Saturday: https://www.redfin.com/IL/Chicago/3500-W-Cullom-Av...All units are 2 bedrooms and current gross rent is $40,140 annually.  

Basically looking at GRM= 22  and would give a 2.5% annual return. 

He is asking for 2% annual management fee and 25% of the profits over 8% annualized return.

Rental Monthly Income $4,800.00 (8 rooms x 600) ------- 4800 x 12 = $57,600.00 Monthly Gross Operation Expenses Mortgage950.00 Taxes191.00 Insurance 166.00 Maintenance Housekeeping 216.00 Landscaping 60.00 Repairs 10% - 480.00 Operational Electrical 350.00 Water 150.00 Cable/Internet 150.00 Reserves 10% - 480.00 Total - $3,193.00 Annual Gross Operation Expenses Mortgage11,400.00 Taxes2,292.00 Insurance 1,992.00 Maintenance Housekeeping 2592.00 Landscaping 720.00 Repairs 10% - 5,760.00 Operational Electrical 4,200.00 Water 1,800.00 Cable/Internet 1,800.00 Reserves 10% - 5,760.00 Total - $38,316.00 57,600.00-38,316.00______________NOI $19,284.00 19284.00/46,000.00 (down payment) = 41% Cash on Cash Return (CCR)

Until just last year, the local market was beyond robust, with Pitkin County real estate sales hitting $2 billion in 2015, a 33% annual increase driven largely by sales of homes in Aspen, where prices average $7.7 million.This year, however, "a slowdown in January turned into a free fall."

You can also buy a "partial" which is purchasing a set amount of P&I payments on a performing note at an agreed annualized rate of return. 

I have an apartment building that I want to purchase its annually cash flow is $66,300.  

Then you have to subtract the annual mortgage to get a real return. 

However, 1. my calculated annual expense is lower than the listing agent's estimation.

I was thinking bullet payment of 5K and if not paid by due date 10.5% annual paid monthly after the 2 month period?