Hello Everyone!
I'm a long-time observer and first-time poster. I appreciate all the insight and wisdom everyone has provided, and it was the motivation to push me to buy my first rental.
The Property is in Chicago, IL, specifically in the Gold Coast Neighborhood. If you're not familiar with the neighborhood, it's one of the most prominent neighborhoods in Chicago. It's an A neighborhood, where most single-family homes are over 1 million dollars, and most one-bedroom condos are 400K and up, and it's the same neighborhood as the original playboy mansion.
Neighborhood:
-Close to two Beaches
-Close Lakeshore Drive, which allows you easy access to anywhere in the city.
-Lincoln Park
-Nightlife and Restaurants
-Shopping
-Museums
-5 Minute Ride to Downtown Chicago
Property: Studio Apartment: Approximately 575 Sqft, with an open floorplan.
Laundry in Building
Price: Original Price: $187,000
Close Price: $166,000
Taxes: $1900/Yearly
Renovations:$12,000 (Includes Materials + Labor)
Includes:
Repainting of Entire Apartment and Ceiling
Updated Countertops
Patch Work
Updated Lighting and Fixtures
Updating of Backsplash and Tiles
Adding Closet Doors
Glass Partition Wall (Will be a divider between the bedroom and living space)
Rental Estimates:
Rentomoter: 1800/Monthly or 2500/Monthly with Airbnb Rentals
*The property allows Airbnb's if they are one-month minimum.
Expected ROI:
Yearly Rental: 8.5% Return
Airbnb Monthly Rental: 11.5%
Question:
1. First, is this a good deal?
2. Does anybody have any experience with Airbnb Monthly rentals? Would you recommend going the Airbnb rental route or yearly rental agreements?
3. My lease is approaching, and I was planning to live in the property for 6-8 months, so I'll be able to save enough money for another renovation, or would you recommend I rent an apartment and start making money ASAP?
*Some background; the mortgage, including Morgage payment + HOA + Taxes, come in about $1200, and similar properties rent will cost about $2,000.
Thanks in Advance!
