Asking Price: 245,000Turn key fully rented quadplex built in 2000, no required improvements in a B neighborhoodTotal Rent: 2950 which is already the mid-high end for the area so I doubt there is a potential value play.Property Tax: 2200Insurance: 1100Utilities (water): 1680Maintenance+Property Management + Vacancies estimated at 30% of rentThis comes out to 44% of rent = planned expenses which is pretty close to 50% rule, so passes sanity check.Monthly Rent - Expenses: 1,650Cap Rate: 8.02%25% down with 3.875% mortgage for a 15% Cash on Cash returnCash flow: 786To check my math against rules of thumb:50% of rent: 1475, payment on a 0% down mortgage: 1161Cashflow: 314, or about $80 per doorUsing my calculated expenses net rent: 1650payment on a 0% down mortgage: 1161Cashflow: 489, or about $120 per doorI plan to initially offer $220k which would price the cap rate to 9% and cashflow up to 875, but I think the property is a reasonable deal even at asking and currently am prepared to pay retail price.

$1mm in 1-2 properties, I'd likely go with class B apartments, or maybe class C in a B area.

Just keep him in the loop, and tell him everything about what you are doing...I learned the hard way, but just make sure you have plans A, B, and C...then if that fails, pull out plan D.

I'd call it a B- area: dead end street about 3 blocks long, mostly brick SFRs, nicely kept.During due diligence, we found out that when the city annexed the duplex it was never zoned R2, and it looks like they're unwilling to do that now.

This is a single family home in a B+ neighborhood which needs a complete remodel.  

You would have to pick them up and move them to a nicer area and add A/B amenities like playgrounds and swimming pools.

Is this a B class?

I have a BS in Exercise Physiology and certifications through the American College of Sports Medicine (ACSM) as an Exercise Physiologist as well as Group Exercise Instructor.

For Chgo: Southside D-F, Bridgeport C, N Lawndale, F, Berwyn & Cicero C, Skokie C+, Kenilworth A, Lakeshore B, Lincoln Park A-B etc...

You get that kind of return in a B area, go for it!