Thinking of Buy & Hold a SFH in Woodridge, IL

[Peter F.]

Hi everyone! I may have an opportunity to purchase a nice SFH in Woodridge, IL. I've never invested before, but am ready to get going. Where do I start with my research. So far I've pulled this following:

• 1,450 sq. feet
• built in 1968
• Zestimate $277,040
• Sold for $278,000 in March 2005
• Rent Zestimate is $2,100/mo (Reality from rentometer is about $1700)
• Property tax in 2013 was $7,311
• Tax assessment in $2013 was $79,730
• Estimated Mortgage $1100/mo

• http://www.homefair.com/real-estate/city-profile/results.asp?Zip=60517
• https://www.rentometer.com/results/ItYPkrLTo3Y
• https://www.zillow.com/homes/Woodridge-IL_rb/
• Similar Home for rent
  • https://www.zillow.com/homedetails/2-Wintergreen-Ct-Woodridge-IL-60517/4543794_zpid/ (this home is almost identical to the one on offer)

I'm pretty familiar with the area because I grew up near there. I have many family and friends who I trust there to help me manage the property as I live in California. How do I check the schools and what else should I be looking for in order to price the house? I know it's all based on what kind of income the property will make, but it's currently not a rental so how do I find that information out. I understand how it's done with a MFH, but not for a SFH that was not previously a rental. Also on Zillow, the house is supposedly worth as much as it was when it sold last time. Is this an indicator of an area that will not appreciate well? The seller is a good friend so I'm not trying to come in and low-ball or anything, but we can avoid an agent fee and I suppose some other costs because we trust each other very much. She doesn't want to have to go through the ordeal of selling it to someone unknown. I definitely do not want to take it if it will not provide cashflow though. Where do I go from here. Any help is very much appreciated. Thanks!

[Sahana R.]

Hi Peter, I am somewhat familiar with the Woodridge area. At first glance, I would not buy and hold unless the price was under 200K. And maybe in well under. I see the market is hot but what would your mortgage payment be and do you want to use a large down payment to make the note lower? Is it hot for investors or homeowners who plan to live in the property? You don't want to end up with a property that you are not making that much of a cash flow. Then you could be stuck with it because you bought it kinda high. Just my opinion...but I would keep looking. Just remember friends and family may not know Illinois rental laws and may not have time to tend to the property which can be a daily/weekly/month expense. However, I am not expert so maybe someone else responds. This is just my opinion.