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"post_content": "Ladies who own property: I was thinking of purchasing an apartment in Chicago then renting it out till I can move back (I live in SF today). What are some things I should consider before buying?",
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If you are buying with the intention of renting, even if just for some point in time, make sure the apartment don’t just suit your tastes but it also has a profile that you can charge a good rent/rent fast. I currently live in my apartment but there is a possibility of transferring in the future, so I changed a bit what I was looking for and made some concessions to get a place I would be both happy living in but wouldn’t have problems renting. Always remember that while you are not renting and not living there, you have the expenses with the property added to your own living expenses!
You need a property manager being far away. Property managers are expensive. Don’t forget to factor this in to your expenses.
Make sure whatever you buy allows renters vs a mandate that all units are owner occupied
Id look into increase of property tax.. mine has gone up every year since i purchased my home.. it adds up
And you don’t get the benefit of lower property taxes by living in it since it’s an investment. (In many states property taxes increases are capped for those who live in their homes.) Also, this is an investment property thus will need at least 20% down.
I have heard that you sometimes need to live in the apartment for 1 year (something to do with the mortgage), something to check into. Also, when we rented out our house for a year, we hired an experienced realtor to find us a family. She was super knowledgeable about pratfalls and potential issues and got us an amazing tenant at the end of a bidding war. Could not recommend enough.
You have to buy the house under a different (and more expensive) contract if you don't plan to live in it for the first year. I have several rental properties but I bought them where I lived and lived in them for a year or more before moving on. Why would you buy in Chicago now if you're not living there? Real estate pricing isn't increasing in a crazy way atm so you could wait until you move there. Property management companies take a lot of the profit of renting
Make sure you factor in HOA in your monthly expenses. Also make sure the HOA of the property is well-managed and has a healthy reserve. Look up what special assessments mean and make sure you don’t purchase a property where the HOA is poorly managed and is at risk of issuing special assessments. If you do purchase and rent out, make absolute sure your contract with the renters mandates renter’s insurance with liability coverage and make the tenants send you proof of obtaining that insurance before moving in. Source: Have tenants who had two rowdy cats that managed to flood our condo along with the one below theirs. First week they moved in. $50k out of pocket if it weren’t for mandating they get renters insurance with liability coverage beforehand.