HELP! ROI seems too good to be true, am I missing anything?

[Sixuan Chen]

Dear all,

I'm looking to invest in at least 1 property in North Chicago (around Rogers Park and Evanston) area in 2021 so I'm screening deals on MLS. Now I'm find a property whose potential ROI seems unbelievably high (property tax and HOA fee seems suspiciously low) and I wonder if I miss any factor to consider. Here are the info on MLS:

Address and type: 7656 N Bosworth Ave. Townhouse, 3b1b

Age and size: 60+ years, 1400 sqft

Listing Price: $187,000

Estimate monthly rent: $2150

Property Tax: $801, HOA fee: 0

Estimate insurance cost: $900/month

Repair, Vacancy, CapEx (5% rent)

Estimate CoCROI = 26%

Do I miss anything here? How can I confirm the tax and HOA fee number?

Thanks!

[John Warren]

HI Sixuan,

You can always check the county website for property taxes to make sure. Check cookcountypropertyinfo.com to get the current assessed value and to see if the value will rise post sale. There is a tax calculator on there as well which can help you make sure nothing is up. I always do this for clients to make sure nothing is off. Also check for exemptions to make sure there isn't a senior exemption or senior freeze. 

For the HOA, you have to have your agent call to do some digging. This part of condo investing is not as simple as the HOA docs aren't public.