Multi unit building

[Jay George]

Hello,

I am relatively new to real estate investing as I purchased my multi-family building in Chicago back in 2021 putting in twenty percent down of the purchase price. My interest rate was just over 3 percent. At the time of purchase my taxes were just about 10k and now my taxes have increased to 14k. The valuation for my property has gone from 35 to above 60 due to the price I purchased at and I understand this was my shortcoming not realizing this would happen. This has thrown me for a loop now because my mortgage payments have gone from just over 3k  to 4.5k due to the increase in property taxes as well as my insurance increase. I do live in my building so my income from the other 2 units in the building go toward my mortgage payment. I am trying to figure out if this is a good scenario for me to continue be in given that I went from putting in just over $500 per month to now putting in over $1500 a month. So my question is, is this building still advantageous for me? My goal when I got the building was to live in my building while having my tenants pay for nearly all of my mortgage.  

[John Warren]

@Jay George even being a local agent in the Chicago area, I am not 100% sure I can see enough of the picture to know if you are doing well or not. I suspect you live in a solid neighborhood, and that you are getting a ton of appreciation right now. Most of the B and C+ neighborhoods in the city are seeing explosive appreciation and rent growth. 

Pushing rents is one of the unfortunate parts of being a housing provider. Those rising rents are rising for a reason (taxes and insurance). 

Are you contesting your taxes annually? Do you have a good tax attorney? What about insurance? Are you getting quotes to keep it competitive?