investors chicagoHipster loves multi-family properties. Why? They make cents (or rather – sense). Instead of adding just one source of monthly income to your portfolio via a single family rental, it’s pretty great to add several from a multi-family property (though, of course, we love single families too). Hipster, as you may know, also loves investing in Chicago. What’s not to love about Chi-town? From the Sears Tower (okay, okay – it’s called Willis Tower now) to great comedy and delicious pizza – this city rocks. It’s not only fun to visit: it’s a great place for investors to set up shop. Why? Lots of jobs means lots of stable tenants. Lots of colleges mean lots of tenants. Oh, and the buy-in prices are superb. Check out today’s find: it’s a triplex with a one year scope of work warranty!

Location: Chicago, IL. Triplex.

Built In: 1913(but fully redeveloped)

Purchase price: $205,000 (not a foreclosure, normal sale)

Property info: 9 bedrooms, 3 bathrooms, 4,818 square feet (total for all 3 units)

 

Income

Monthly rent collected: $3,250

Expenses

Monthly expenses

Property taxes: $313

Insurance: $163

Property management fees: $260

Landscaping: $120

Owner Paid Utilities: $145

Monthly expenses (conservatively estimated)

Vacancy (7%): $228

Repairs (5%): $163

Total Monthly Expenses- $875

Net Income = Income – Expenses = $1,391

 

Advanced Numbers

Cap Rate =

annual net income (non-inclusive of mortgage payment) / purchase price = 8.11%

Cash-on-cash return =

Depends on your leveraging.

If you are interested in this property or seeing others like it, contact Melissa at melissa@hipsterinvestments.com.

 

 

 

Comments
  • Shawn
    Reply

    Ali, I think I’m missing something. Are the numbers for this one right? Is there additional or multiple costs because this is a multi-family property?

    • Ali
      Reply

      Agh! So sorry Shawn and good catch. Typo 🙂 This is a triplex and for $250k. Then the rest of the numbers work out better.

  • Eric Menefee
    Reply

    This looks like a great deal. I will be looking for something like this in the near future.

    • Ali
      Reply

      Great Eric. Let us know when you are ready and we will get you connected. Don’t wait too long though, Chicago has been on quite the appreciation rise lately.

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