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pat, Other/Just Looking in Freeport, IL

If we bought a historical home on Stephenson with 4 beds 1.5 baths 2200 sq. ft , what is the going rental rate in that neighborhood

Asked by pat, Freeport, IL Sun Nov 11, 2012

? We need to rent for a few years until retirement but think buying now may be smart. Is a one year lease standard there?

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I grew up in the Freeport area, left many years ago, but then was back from 2002 - 2006. What still shocks me is the property taxes. While back in Freeport in 2002-2006, our annual property taxes were 3.3% of our assessed value ($5K on a $150K home) My wife and have owned two other homes since then, with the percentages being roughly 2% ($7K on $341K home - Madison, WI) and currently 1.3% ($3K on a $215K home - Gainesville, FL). In my opinion, the Freeport property tax situation is simply a microcosm for the entire state, which continues to sink financially. The hardworking and decent folks of Freeport, and many small towns like it, will continue to be at the behest of the liberal Chicago political machine. Sorry for adding the political opinion, just stating facts.
0 votes Thank Flag Link Wed Jun 4, 2014
My rule of thumb has always been "If you can't get 1% of the market value as monthly rent, consider selling it instead." This amount can certainly vary a little but you need to remember that when that water heater goes out or the sewer line need replacing, those costs need to be covered or at least thought about when trying to set some kind of rental value"
0 votes Thank Flag Link Wed Mar 20, 2013
A rule of thumb I have always used is "If you can't get 1% of the value per month for rent then you should consider not renting it". This amount can be adjusted a little but this is the amount that should cover costs and a reasonable amount to be set aside for maintenence.

Jim Bangs
RE/MAX Town Lake & Country
815-275-7390
0 votes Thank Flag Link Wed Mar 20, 2013
Depends on condition and if it has a garage. Rent on a larger updated/nice home could run you from $750-1250/month.

Yes a one year lease is standard.

As you'll see buying now does make more financial sense if that is an option. As many of these same homes have an asking price around $100,000 your payment would be less.

Hope this helps, have a great weekend,
Aubra
0 votes Thank Flag Link Sun Nov 11, 2012
Hello,

Rental rates vary, of course, depending on the area, condition of the house, and whether or not utilities are included. As a general rule, Freeport rates range between .35 cent per square foot to $1 or more. For a home on Stepheson street, one might find a rental rate of .52- .70 per square foot. Be sure to determine if tenant will be paying utilities or not before setting your rates. A total of the year's expenses can be divided by 12 to determine how much to budget for utilities if they are included in the rent.

Let me know if you would like additional assistance or further information. Good luck!

Ann Haag
Nextage Realty
815-218-6121
0 votes Thank Flag Link Sun Nov 11, 2012
I am not quite clear on the situation! are you looking to rent or inquiring about investment returns? Typically too much depends on the updates and amenities offered within the house (main floor bedroom, central air, energy efficient items, garage, yard, etc.) As a landlord with multiple types of property experience, those homes are the hardest to rent & cash flow due to the property tax value. About $750/month with a one year lease is average!
0 votes Thank Flag Link Sun Nov 11, 2012
You should buy! Interest rates will never be lower. Prices are starting to rise in Freeport. We just bought, no regrets. Its a grand investment. Yes, taxes are ridiculous in Illinois but have you been to our parks? Some also goes to our awesome library and Highland Community College which is simply amazing.
Flag Sat Nov 16, 2013
Not! Sorry about that!
Flag Sun Nov 11, 2012
No problem! It probably would offer a good ROI!
Flag Sun Nov 11, 2012
I am beginning to understand how high the taxes are in Illinois. We are from out of state. I see that purchasing in the area may not make sense before we're ready to move in about 5 years time. We were going to rent the house out for that 5 years hence my inquiry about rents and leases. Thank you so much for your reply.
Flag Sun Nov 11, 2012
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