Hey guys, Alex here from Addison, IL.  Been listening to the Bigger Pockets Podcast for the last couple of weeks.  In 2008 and 2009 earned top 100 Chicago Realtor title.  Had some financial missteps ,and pretty much s...

So...ummm...let's play "simple math"...$450K purchase price, 25% down...30 year fixed rate mortgage at 5% on $337,500 is $1,812 per month...So if you have zero vacancy you'll break-even on the mortgage...And then burn money on maintenance, cap-ex (likely very limited), any vacancy, property taxes, insurance, etc.Consequently, you really, really, REALLY need that home price to go up. 

There's been a lot of co-working space coming online but we need to land a few large biotech type tenants down there so it becomes more of a "live, work, play" environment downtown.

If you can get the rent up above $700 then it sounds like a solid play.

If you have an office but play games on your office computer, then you are not using the office exclusively for your rental business. 

If you want to do this deal, you need to bring in some experience, which will potentially require some real skin in the game on your part. 

@Michael Dang Honestly, historical cap rates play minimal, if any, role in my underwriting.

DTI, gross income, credit score all play a factor in how much you can borrow.You may want to reach out to @David Ribardo.

But don’t play nice.

Let me play devil's advocate...