Soon to be second property

[EJ K.]

Investment Info:

Single-family residence buy & hold investment in Lockport.

Purchase price: $172,000
Cash invested: $4,000
Sale price: $172,000

Current residence.
Moving to Indiana 07/2020 and will begin renting this out. Expect only minimal cash flow but as a physician can cover and once paid in total will generate 12-15k a year profit including property manager fees.

What made you interested in investing in this type of deal?

Wanted to house hack using physician mortgage 1 more time prior to buying a more expensive home

How did you find this deal and how did you negotiate it?

Our own research

How did you finance this deal?

Physicians mortgage through Huntington
4.15 percent, 0 down, 0 PMI, 15 ARM

How did you add value to the deal?

The financing available to me, less than appraised value

What was the outcome?

Not as good as oak lawn, but given high earnings from W2 job, not going to sell

Lessons learned? Challenges?

You can’t always buy a single family home for yourself that will turn into a good rental.
Illinois property taxes truly are insane. 600 k homes in Indiana are cheaper than this 172 k town home

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Sandi Frith at Huntington