Home Buying in 60626>Question Details

Truce, Home Buyer in 60626

Can I buy a condo and rent it out?

Asked by Truce, 60626 Sat Apr 28, 2012

If I paid in full for the condo, will there be any extra fees? Will I have full ownership? I want to rent the condo out to students mainly. Please tell me the differences between owning a home and owning a condo. Thanks.

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Owning a home you wont have the restriction a condo association might put on in order to rent out the condo. Some association put rental caps on the number of units that can be rented out at once. For the most part the extra fees for owning a condo after closing are going to be taxes and assessments. You will have full ownership of just your condo if you pay it in full. You will be part owner of the building along with all the other unit owners int he building.
0 votes Thank Flag Link Fri Mar 15, 2013
When you own a single family home the property is titled in your name and you are subject to few restrictions (e.g. zoning) regarding your use of the property. Condos are quite different. All owners in a condominium building are subject to a declaration of condominium and each association is different. THe declaration has many restrictions regarding the use of the property. For example, an association declaration may restrict or even prohibit the rental of individual unit owners. Thus, you should always review the declaration before making a purchasing decision. This document will be given to you at the time that you go under contract to purchase and should be reviewed carefully with your attorney so that you can become fully aware of any restrictions on your use of the property.
0 votes Thank Flag Link Fri Oct 26, 2012
Not all condos can be rented out, so always check the covenants and by laws before you even write up a contract to buy. Also, many buildings have pet restrictions as well, which may hinder your ability to find tenants since many people have pets nowadays. Finally, expect to pay monthly association costs which can range vastly. The association dues usually include exterior maintenance, common insurance, snow removal, and sometimes even some utilities like water and heat.

Usually bigger buildings with more amenities have higher association costs, so I would avoid those if this is going to be an investment. And if you are looking for students, you should probably be looking in areas where University's are like Rogers Park, Lincoln Park, and Hyde Park. But also choose an area that you know and feel comfortable investing in.
0 votes Thank Flag Link Mon Apr 30, 2012
As long as there are no rental restrictions, you can do whatever you want.
0 votes Thank Flag Link Sun Apr 29, 2012
Hi Truce,

I've got a condo that I can sell at a discount to you without realtor $37,500. Got all of the information that you will need and it can be rented out too. I just picked up a good deal fix and I am looking to flip. Contact me and we can discuss further.

Thanks,
Tony
708-942-7039
redhotrei@hotmail.com
0 votes Thank Flag Link Sun Apr 29, 2012
Buying a condo is just like buying a house.You will have closing fees for both, but you will own them the same. With a house you can do just about anything you want with it. With a condo you need to check with the Association rules and regulations with respect to whether you can rent it out. Some buildings have rental caps limiting the % of units that can be rented. Almost all condos require a 12 month lease so renting to students for the 8-9mo school year will not work. If the students make noise/have drunken parties etc and disturb neighbors the Association can fine the owner. You do not have these issues with a house.
While there are some cheap condo prices out there those prices are usually such for a reason.
Anoher opion migh be a townhouse which may or may not have the same condo type rules.
0 votes Thank Flag Link Sun Apr 29, 2012
Great Questions... Bottom line is Owning a home ... well you Own it in side and out the land and everything... Condo you own the "space" within your four walls the rest is "Common space and shared" with the other folks in the Condo...

Just a heads up for you and please pass it on... NEVER purchase a Condo with out first having a copy of the Rules of the Condo as well as a current financial statement from the association as well as some other info ok?

By Law in IL the seller must make this available to you the buyer.

Hopefully you are thinking of working with a Realtor to help you out with all this...

Good luck... If you would like I cand send you some links to help you sort every thing out.
Neal
0 votes Thank Flag Link Sat Apr 28, 2012
There are rules and regulations that must be followed in a condo building. If your tenants decide to not follow the rules you can be fined and the condo association can take possession of your unit. I would recommend buying a home or apartment building instead.
0 votes Thank Flag Link Sat Apr 28, 2012
Matt Diehl, Agent, Chicago, IL -

In some markets, like Oak Park, where I also sell homes, condos have been slammed for value & sometimes aren't even selling. But you know what is? The good 'old fashioned single family home.

The good news witht that is that in the hardest-hit markets, you can often buy a condo for an unbelievably cheap value.

As for renting out a condo after you buy it, that's totally dependent on each building's rules or "bylaws," as we call them. Do people sometimes break or ignore these bylaws? Of course! But I wouldnt recommend it. It's best to buy where you KNOW you can rent. And alas, I'm sorry to say, it's really on a case-by-case, building by building basis.

It's as simple as that. I do, however, fully support your idea, and think that if you can buy a condo (for pennies on what used to be the dollar) and rent it out, with a positive cashflow, you're in a great situation, and I fully support that.

I hope that's helpful to you!

If you have any questions, or want to chat further about this, don't hesitate to pick up the phone and give me a call or text me, at: 773-710-8818

Best of luck in your investment search! :)

Sincerely,

Matt Diehl
Licensed Realtor
Coldwell Banker
773-710-8818 (call/text)
Web Reference: http://mattdiehlrealtor.com
0 votes Thank Flag Link Sat Apr 28, 2012
Hey Truce,

This is something on a case by case basis. Every condo building's association has different rules regarding renting out units - some have restrictions on the amount of time a unit can be rented, others have restrictions on the amount of rentals allowed in the building and the list goes on. In the 60626 neighborhood there is a very wide range of building types - small 3-unit buildings to massive highrises and this would be a question I would be able to ask each listing agent of a listing you really like.

Paying cash won't make any difference on being able to rent the condo out compared to someone who puts 5% down - it's all the same. Generally there are no extra fees (at least I haven't heard of any) unless there is a move in or move out fee that is assumed by the unit owner.

I'm actually working with a couple Buyers in the 60626 neighborhoods strictly for investment reasons so I feel I can be a ton of help for you - my contact information is below so please call or email me and I'm ready to get started immediately.

Jeff Stewart
REALTOR®, @properties
3101 N. Greenview Avenue, Chicago, IL 60657
309-269-3499 CELL | 773-305-0480 FAX
jeffstewart@atproperties.com
0 votes Thank Flag Link Sat Apr 28, 2012
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