The bigger picture to keep in mind, is the state of the economy and the housing market. Have we reached bottom on our way up, or do we have further to go? Owning in a condo is tricky because you are buying into a building and sharing some responsibilities with other owners whom you have no control over. With that said, the Bristol is a magnificent building with what I believe to be a very small percentage of distressed condos. That is a very important factor to consider!
Hope that helps.
Consider the lowest priced 3/bedroom unit is $1,030,000. If you negotiate a $1,000,000 purchase price, put down 20% and amortize over a 30/year period with an APR of 5.165%, your monthly payment would be around $4356.
Now add insurance, taxes, assessments and your monthly payment for a $1,000,000 purchase price would be $6271.
Currently there are no 3/bedroom rentals available in that building. However, in the past the highest amount received for a 3/bedroom was $5600 back in 2007. This same unit has seen a decline in rental income since then. Today the highest amount received is $4400, big difference.
Hope this helps! If I can be further assistance don't hesitate to contact me directly.
The lowest list-priced 3bedroom in the building - The Bristol at 57 E. Delaware - is listed for $650,000.
For this unit, the assessments are 860/month and the yearly taxes are reported at approximately $7650.
There are no 3bedroom units for rent on the MLS currently - however, out of the approximately 170 units, there are 6 condos listed for rent on the MLS.
Over the years, per the MLS, 3bedrooms have rented for up to $4995/month.
The building has a pool and exercise room - which are often quite attractive to renters.
If the unit/units you are considering also come with parking in the garage, that is also usually a plus.
Whether it is a good move for you to buy a 3 bedroom home in this or any building really rests upon many factors - and is a subjective determination.
What it comes down to is what *you* are looking for in an investment.
Are you looking for long-term appreciation of the property value?
Are you paying cash and looking for a monthly income on the investment?
Do you want/need an in-town in the Chicago area?
Is this the location for you?
What are YOUR investment goals/personal needs?
The above are just some of the factors you should be weighing in determining the answer to your posted question.
If you have not already found an experienced, knowledgeable real estate expert who you trust, we recommend that you take that first step.
A talented, exceptional real estate expert who knows the area, the building in detail, and YOU well, will best be able to help you ask the right questions and find the right answers to help you make this decision.
Good luck to you!
and then I assume you want to cut even with the amount the renter will pay.....
That you can calculate relatively easily with the help of a Realtor who can give you the most recent rental amounts.
Then like with every rental unit, you need to include in your calculations your closing costs and the fact that
you may not rent right away, or not consecutively for several years!
And then what, how long to you want to keep the property and when do you expect prices to go upwards so that it would be reasonable for you to sell the property for profit......
In this market I wish we would all have a crystal ball to predict those things..... Also assessments could go up etc. etc. So you really need to crunch numbers, build in some safety pillow but most of all you need to
think why do you want to buy an investment property in the first place!!!!
Also as you know your interest rates for a loan will be higher than for a primary residence!
Not sure this helps you, but it gives you some insight in all the numbers you need to consider before deciding to want to buy an investment property...... and once you think through all the numbers and plus and minus points, may be you want to consider smaller units, lower rental income, or a different area....
Good luck, I hope this helps a little.....
And a good suggestion work with a Realtor, who can provide you with detailed information about other rental units available and those recently rented out in a building you want to consider.
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The most recent rental on the MLS rented for $4400 after a little under than two months.
Look at what your true monthly cost will be (mortgage, taxes, assessment) and rental projection rates. If the rental rates and your true costs can be easily reconciled, it could be a great fit. There are many investors in that building who have been very happy with their decision. A lot rides on your personal financial situation so it is best to start by examining that.
If you plan on taking out a mortgage, there are still a few decent loan programs for investors but the interest rates have been trending noticeably higher than for primary residences. The down payment requirement is also greater.
The units in that building tend to rent out fairly quickly and if you are serious about exploring this, please let me know. I would be happy to put you in touch with a lender that specializes in this type of purchase.
The prices in that building do not seem to bear much relation to reality either, but obviously some people think so. I would think you could find some better values in the neighborhood although the building does seem to have a good reputation. I have a friend who lives there:)
In addition to the purchase price we would need to know some basic information such as:
1.) Loan Amount or are you paying cash?
2.) Property taxes, insurance, and HOA dues?
3.) How long do you plan on keeping the property?
This would help me get started....