Hi Jeeva:

A couple of things to consider:

It appears you are buying this condo as an investment property, since you say you want to buy a condo and rent it out. Keep in mind that your interest rate on your loan will be higher (average: a point higher) than if this were to be your principal residence, so you will need to consider that additional cost in your monthly payment.

It would also be wise to do a thorough analysis of the market rents in the area. Although the medical district generally has a good rental market due to the transitory nature of medical students, you will still want to run the numbers and figure out how much negative cash flow your pocket can take, because with higher interest rates, taxes, assessments, insurance, and maintenance costs, it will be extremely difficult to experience positive cash flow.

On the positive side, since this will be an income-producing property, many maintenace items will be tax deductible, so be sure to keep records for tax purposes.

As for resale value, there are still some 'iffy' pockets in the area you mentioned, and you would definitely need to hold onto it longer-term to see appreciation (3-5 years **minimum**) and walk away with a profit (selling real estate can be expensive).

Also know that if this is never your principal residence, you will have tax implications when you sell it. When homeowners sell their principal residence, if they have lived in that home for at least 2 of the last 5 years before the sale, they are eligible for $250,000 capital gains shelter if unmarried, and $500,000 if married. When selling an investment property that was never your principal residence, you will have to pay capital gains taxes -- anywhere from 5 - 30%. So be sure that, when you do sell, you are prepared to reinvest your proceeds in a like-property in order to shelter those proceeds, or to pay the taxes.

Any other questions, please feel free to contact me.

as long as you do not expect to cover all of your costs... It is next to impossible to buy an investment property condo including monthly assessments, taxes, upkeep costs that will bring you the rent to cover all of those costs. Don't make the mistake of thinking that you will get a higher rent than the comps. You will likely have to compromise. If you can buy something right and feel it would appreciate then go for it. You can search for properties on my website at http://www.CONDOChicago.com