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What size and what price OP? The HOA you quote isn’t bad at all.
Yeah 2 BD is easier with 35 plus but with new 23+ age group 1 bed is popular. If it’s sharing they prefer going to coops
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I wouldn't recommend owning rental property in Chicago
$10k is the new limit for for SALT.
Once it turns into a rental, that will count as income as well which is not ideal (currently leasing my 2 bed in LP).
Unless you’re looking to hold for 5 or so years, I would not do this.
Exit costs are 6-8% of the future sale price so you’ll need some appreciation, or extra principle payments, to make it worthwhile for a 3-5 year hold.
Renting in Chicago isn’t very lucrative generally. Buy it if you like it and the location. I wouldn’t expect to make a bunch of money off it though in the near to mid term.
It’s a fairly new condo in a decent area. I’d be concerned with the HoA and condo association policies on renting...
430 HOA - includes heat, water, trash, cable and internet, gym, doorman services, snow and scavenger. Only need to pay for electricity and building is investor friendly. Allows rentals.
Would recommend against it. Monthly cash flow will likely be barley positive, may end up being breakeven after coming property tax increase. I don't see any market forces that will push property values above the pace of inflation in downtown area.
For some units yes, and right now could be a good entry point.
A friend ran some numbers and said buying a 2 bedroom in river north will have cost him 4K per month after holding for 6 years. Roughly what rent would have been.
I think the key is to factor in transaction costs, tax and hoa, tax on rental income, what you could rent it for and then run the numbers. As folks are saying in a lot of neighborhoods in Chicago taxes, hoa, and mortgage are higher than what comparable units are renting for (or roughly equivalent). To make money in that scenario you have to assume the unit becomes more valuable - which in most neighborhoods hasn’t happened recently...but this could be the bottom - the market certainly hasn’t turned positive yet though
What’s the HOA OP?
430 HOA - includes heat, water, trash, cable and internet, gym, doorman services, snow and scavenger. Only need to pay for electricity and building is investor friendly. Allows rentals.
Thanks Kearny 1 :)