Condo Investment - Would appreciate feedback

[Eric Hardt]

I figured I would post a property I'm viewing and get a little bit of feedback from the community. Everyone has different criteria for investing and will say they hate condo's, or it's not enough cashflow, etc.. So I'd like to give a little bit of information about me and what I'm looking for.

My fiancee and I currently own 3 rental condos. My reasoning behind condo's initially was pretty simple - I thought they would be easiest to manage while learning the ropes of REI and it appeared to me that a lot of the SFH in my area were sitting vacant for quite a while (plus they wouldn't cash flow). I wanted to stay local initially so I can both learn, manage myself, as well as having a great knowledge of the area. I'm ready to invest another $50k or so and was considering investing out of state, small multifamilies in less desirable areas near me, or to continue investing in my comfort area.

About the target property: I would classify it as an A or A- area based on what a lot of people call B and C areas around Chicago. I would classify it as a B+ building. Only real potential unknown for me is investing in a non-elevator building and unit is on 3rd floor. I'd definitely welcome any feedback or experiences investors have heard from potential renters on this. 2BR 1 bath unit that is decently updated and wouldn't require any work beyond paint. Property is in the south suburbs of Chicago. It is within 1.5 miles of major hospital, train station downtown, and major highways. Below are my numbers.

Purchase price: 80k

Down Payment: 16k

Closing costs: 2k

Anticipated Rent: $1150

Expenses

Vacancy: $50 (some might say low, based on my experience, I think this is reasonable)

Insurance: $20 (I have a separate umbrella)

HOA: $197 (well run association with decent reserves)

Repairs/Capex: $100 (I don't have a ton of experience, but I think this would be attainable. I'm definitely curious what figures other people are using that invest in condos)

Property taxes: $200

Payment: $344 (5%, I'm hoping I can get this, but going to reach out some banks in the next day or two)

Monthly Cashflow: $239

Yearly Cashflow: $2868

Cash on Cash: 15.9%

Again, I'd very much appreciate any constructive criticism and thoughts.