Time,money and the market all in play with this decision, and you control one thing, the money.
Oh, and the HOA and the financial condition of each of the other owners, almost forgot them.
High risk goes with high reward, so if the return seems to be hefty, it is a safe assumption there is risk there, whether you see it or not. Risk that turns your way is fine and it may well with this purchase.
It is not very liquid now, hence the low price, and you can also assume it will not be liquid any time soon in that market place.
The upside is a healthy return on your investment as long as you get it rented and to a good tenant.
Best of luck with the decision.
A build,king with a high percentage of distressed ( foreclosure and short sales) will necessarily have a shortfall in revenue to the HOA and financing will be hard to find.
That makes it less attractive to buyers and lends.
Maybe you are a cash buyer, but most are not, so any restrictions on access to loans by buyers makes your asset less liquid and less saleable. The short answer to your second part is, yes.
Again, bet of luck, get a good Realtor to help you. Like I said in my first post it is all about risk and reward.
If this is not too much asking, could you explain a bit about "Make sure that your agent has done specific research on the building and the neighborhood to make sure that values haven't been pulled too far down because of distress sales in the building."? Is there any negative impression/factors if the building or the neighborhood had low transaction prices in 2010~2011 due to the crisis and the following foreclosure/short sale waves? Thanks.
By the way, I do deal with rentals, especially in Rogers Park! Please feel free to call now or once you have the property if you want to get some help in finding a good tenant.
never really that easy to just mention a neighborhood or area and say oh great, go for it!
It is just really more complicated, a one bedroom one bath is of course not a large condo and will not
appeal to many, you are thinking of a single individual in most cases and will you be able to rent it,
well there it comes into what is close by, how hard is parking, near the Rogers Park station you will
most likely be able to rent to students or university related personnel....
So if you just look at being able to rent, probably ok if you can rent it for enough to cover alllllll your
expenses, repairs, taxes and save for closing cost expenses. Check the association carefully, to make
sure there are no hidden or future fees coming your way.....
As for selling a 1/1 unit for 20 to 30,000 $ more, I do not think that this is possible in 2 to 3 years.....
Be very very careful, with what you are buying if you want to sell it in lets say more like 5 years plus
for profit, and remember after 5 years with tenants things will be older and you may have to paint and
clean up the place after each tenant change.
Good luck to you though
Good Luck to you
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike....And always with a SMILE :)
Covering for @Properties Chicago & suburbs, and with her trusted Partner
Agents US & world wide properties. French, German, some Spanish &more EdithSellsHomes@atproperties.com or EdithSellsHomes@gmail.com
Check out my website at http://tinyurl.com/YourRealtor4Life
Get to know me! Learn about my experience, expertise, services! Read letters
of recommendation! Sign up to search for properties in my expanded service area.
HAVE THE MOST WONDERFUL DAY :)
I think Rogers Park is a good investment at this time. Nobody holds the crystal ball, but the area was hit harder than others by the downturn and offers a great value now. I would be happy to talk to you more about the details.
Proposed Rent??? = about $700????
This looks like a good rental that over time (maybe longer than 3 yrs) should appreciate.
Check out the health of the association as well. Any major projects (i.e. Special Assessments) on the agenda?