Marcus, Home Seller in Chicago, IL

Should I sell or rent my Hyde Park Condo?

Asked by Marcus, Chicago, IL Sat Aug 11, 2007

I have a 2 bd/2ba condo in Hyde Park. It has been my primary residence since I purchased it two years ago. I have the opportunity to relocate, but I can't move forward until I devise a plan for my property. Given the market situation, is it best to hold and rent it? Or should I put it up for sell? If I can't sell, what are the options for managing my rental from several thousands miles away?

Help the community by answering this question:

+ web reference
Web reference:

Answers

10
Melissa Manc…, Agent, Plainville, MA
Sat Aug 11, 2007
Hi Marcus,

I think its best to sell it. If you hold onto it, this now becomes an income producing property that you will have to pay taxes on. Additionally, you will be taking on a new job of being a landlord. You also run the risk of damage being done to the unit, as no one will take care of it like you would.

Melissa Mancini, Realtor, CBR, GRI
Web Reference:  http://MelissaBMancini.com
3 votes
Rose Wilkins…, , Edmond, OK
Wed Dec 3, 2014
Have you considered both leasing and selling at the same time? This way, you can get the best of both worlds!

Furthermore, when leasing... have you ever considered the following:

1. What happens if tenant slips and falls - then sues me?
2. What happens if the tenant defaults on their lease?
3. What happens if tenant maliciously damages my property?

There are a lot of risk management solutions you can be made aware of - and coverage that will pay your lease payment for up to 6 months, if your tenant defaults.

For more information, visit my website at http://www.JVAmerica.com

Good luck!
0 votes
Jessie Pinkh…, Agent, Chicago, IL
Thu Nov 20, 2014
Hi Marcus,
The answer really depends on the current valuation of your condo. Many two bedrooms in HP are back close to the top of the market, but not all.
You should get a realtor to help you with that, then evaluate the rent/sell scenario.
0 votes
joy.r.sinegar, , Chicago, IL
Sun Jan 19, 2014
If you sell, you may not get the sales price you want. I would say rent it and hire a management company to handle to upkeep and rent collection. Your tax liability may not be affected as you have write offs you can take.
0 votes
Mike Opyd, Agent, Chicago, IL
Mon Nov 11, 2013
Have an agent do a market analysis for you. If the numbers work then sell if not hold and rent it out. Theres plenty of management companies you can use that will manage it for you. Do some research and see which one will be the best fit for you.
0 votes
Cheryl Kenne…, Renter, Chicago, IL
Fri Nov 23, 2012
I have been on SECTION 8 FOR (16) YEARS and have had some wonderful APARTMENTS in CHICAGO, IL. and in another State due to relocating.. I Have KEPT UP an APARMENT and Have Won an Award for (5) Years called HOUSE BEAUTIFUL.. I have also Gotten Back ALL my Security Deposit on the Apartments I've Lived In.
0 votes
Tim Haywood, , Chicago, IL
Wed Apr 23, 2008
Hey Marcus,
You're in luck. Two-fold.
Not only am I an established agent in Hyde Park, I also manage property for a few of my clients.
I no way, shape form or fashion, am I advising you to rent your property. You have to do what you feel is best for your situation. Keep in mind that if you rent, chances are you will be renting to strangers and you will always have your property somewhere in the back of your mind, whether it be are the tenants taking care of it?, will they be able to make the payment this month, or whatever, and we can all use a little less stress in our lives. A condo in Hyde Park shouldn't be too tough to sell, especially 2 bedroom and 2 baths.
Again, I would suggest you follow your first thought. Visit my website @ TimHaywood.net
0 votes
Pam Winterba…, Agent, Danville, VA
Sat Aug 11, 2007
A property management company can manage it in your absence. At the point you rent it out it becomes income property. When you go to sell you may have some tax consequences if you have lived it for two of the last 5 years. Connect with a local Realtor to determine what the market is like in your area for selling (average time on the market) vs renting it so you can make an informed decision.
Web Reference:  http://pamwinterbauer.com
0 votes
Ernesto Fraga, Agent, Miami, FL
Sat Aug 11, 2007
Hello, there are many factors to consider, but let's stay on what you are asking. First, you need to contact an area specialist Realtor and see the demand in the Hyde Park area if you decide to sell. If there are many units like yours and selling it will take 6 to 8 months, then you need to see what your finances will be to cover those mortgage payments. Second, if you decide the rent, find a Realtor that specializes in Rental properties. This individual will check references, employment, credit, bank statements, and even a paystub to make sure that this person will pay you on a monthly bases. Real Estate Brokerage normally charge 10% of the monthly rental to collect rent, have repairs done to $250, any more than $250, they will have a few estimates done for your review. Real Estate brokerage sends you your rental payment every month. As far as damage, there will always be a few nicks here and there, but look at the bright side..if you rent for $1000 as an example for only 2 years, that's $24K that a stranger paid down your principle balance and maybe the market will kick it up an addtional 6% to 8% in value. As far as taxes, talk to your tax advisor and the deductions you can benefit on. It's never a wrong move to rent. If you can keep this property for 15 years, it might pay off and you have some good money for other investments and/or savings. If you need further assistance, do not hesitate to contact me via Email and/or telephone. All the best!

Ernesto Fraga
Realtor / Mortgage Broker
0 votes
Jim Roth, , Chicago, IL
Sat Aug 11, 2007
Good morning - a couple of things - first without knowing more about your specific unit( sq. ft, age, location, parking(y/n), condition of unit and building) it is hard to gauge appreciation. However, the buy,rent and property manage question I would tell you this - if you sell it and you have lived their for 24 out of the 60 months as your primary residence then any capital gains(upto $250,000 individual/$500,000 joint ownership) is tax free... if you rent (again not knowing what the current rents in Hyde Park are) you have the added tax on this income plus the concerns of taking care of the unit. Also make sure you can rent (alot of associations put a limit/restrict the number/percentage of units that can be leased at anyone time.
0 votes
Hyde Property is a must HOLD. Values will be increasing rapidly. Sell when you can get maximum return.
Flag Sun Jan 19, 2014
Search Advice
Search
Ask our community a question

Email me when…

Learn more