Good deals and Not so Good deals
Hey all,
This is my first time posting so bear with me. I've recently decided to start investing in RE because I'm sick of paying rent but often when I read about all these good deals, the numbers I see posted on these forums are usually all really low compared to the prices you would see in a larger city. In my case I am in Chicago and it is almost next to impossible for me to find a positive cashflow property in a decent part on the Northside. Since I can only put 10% down my philosophy right now is to find a rehab condo, owner occupy for at least a year, and see what happens from there. I'm almost certain I'll lose money in the beginning but that's why I'm trying to work some sweat equity through a rehab. More importantly, I'm just trying to gain some experience in the whole process of actually making a purchase. I just want to take the plunge, I just don't want to lose all my money in the process. Right now, with 10% down, my mortgage payments on a 150k property might be around 900. Add in *** and Tax and that will bring me to around 1400.
Current rental market for a place in that location looking through online ads look like only 700-900.
Is this just a really bad idea and should I simply consider looking for another area of Chicago where the mortgage payments would be closer in line with the rents? I just can't imagine positive cash flow without putting down more money. Any body have any suggestions?