All Forum Posts by: Courtnye Nicole

Hi all, just wanted to get some advice before make a decision. I have a rental property in Park Forest, Illinois & everything has gone up in cost & the taxes are ridiculous, as with many South Suburbs of Chicago. But the taxes doubled this year! Would you sell if you were in this situation?

It depends on a few factors.

1. If you intend to sell as a turnkey property with a tenant in place would an investor be able to cash flow the property? If not then you should probably hold on to the property as long as it's still cashflowing.

2. If you intend d target a first time homebuyer and your current taxes are less than $6K then maybe you should sell. A first time homebuyer will qualify for a homeowner exemption to bring down their taxes. Your home, has to be in good condition & you will have to ensure that the tenant can vacate the home. Why less than $6K- It's been our experience with first time home buyers in Park Forest that they will not be able to close on a home if $500 per month has to be escrowed just for taxes.

3. Since you're considering selling have you considered selling to your tenant? If your tenant cannot qualify maybe consider putting the home up as lease with Option to Purchase. Get a nice downpayment from someone who will purchase later. Again I think this will only work if the taxes don't require escrowing $500 to $600 per month for an area like Park Forest.

Thank you, the taxes are now more than $6K but I hadn't even thought about selling to my tenant, that is something to think about if I decide to sell. I appreciate it

0 Votes

Chicago, Illinois

Quote from @Henry Lazerow:

If your sitting on a lot of equity and the COC of that equity is less then 5% I would sell. A lot of Chicago suburbs have seen some great appreciation.

That's what I was thinking as well, thanks!

0 Votes

Chicago, Illinois

Quote from @Christian Beecher:

Hi! The fact that you are thinking about it may indicate the property is more stressful than it's worth. I'm all about peace of mind and if it doesn't bring peace it has to go!

But if the property does bring peace and the it's still cash flowing I would keep the property and you would have to figure out how to replace that income (if any). If you do end up selling I'm a local real estate agent and would love to assist you with the process.

Please reach out anytime!

Thanks so much, I'm still trying to figure out what I'm going to do but I will reach out! I appreciate it.

1 Vote

Chicago, Illinois

Quote from @Paul De Luca:

Quote from @Courtnye Nicole:

Depends - what was your cash flow before the taxes went up vs after? What do you think it's worth vs what you owe?

If your cash flow has essentially been reduced to zero (or negative), yes it probably makes sense to sell.

With the rent that I am currently charging it would be zero, if I increased the rent it would cash flow slightly. Thanks!

0 Votes

Chicago, Illinois

Quote from @Jonathan Klemm:

Hi @Courtnye Nicole (love the spelling of your name btw) - also heard about the crazy uptick in park forest taxes! One of my friends has a flip in the area and the taxes are really hurting the buyer pool.

Regarding your deal, It would be helpful if we had a couple more inputs such as current rent, expenses, and cash on cash return. How long have you held the property? Have there been any improvements over the time you’ve held the property?

I think @Jeremy Ellis also hit the nail on the head because it’s very important to figure out if that property fits within your current goals and strategy.

Thanks so much for the compliment, no one ever spells my name correctly as a result though lol.

It would be helpful if we had a couple more inputs such as
The current rent is $850/mth (with $100 taken out for a property manager)
expenses (i usually have a couple of repairs every year which are on average $1200-$2000)
After taxes at this point, I'm not making money but before the increase, it did cash flow
How long have you held the property? I've had it since 2012 or 2014
Have there been any improvements over the time you’ve held the property? I have made a lot of improvements, upgraded the bathroom/floors throughout the home and kitchen cabinets

0 Votes

Chicago, Illinois

Quote from @Jeremy Ellis:

That's a tough one. It really depends on several variables:

What are your investment goals?
Does it still cash flow?
Are you betting on appreciation in your investment strategy?

My personal goals focus on appreciation, so I'm okay with making minimal positive cash flow in an area that is appreciating quickly, even if rent rates are increasing at a slower pace. Depending on your answers to these questions, you might have a different approach.

Hi Jeremy,

Thanks so much for getting back with me!
What are your investment goals? I was going to hold the home long term but now the increase would basically eat away at any of my cash flow

Does it still cash flow? It does not cash flow now with the increase but if I raised the rent it would cash flow a couple of hundred dollars a month (the home is paid in full), at this point I'm losing money (between the tax increase and repairs)
Are you betting on appreciation in your investment strategy? I had not

0 Votes

Chicago, Illinois

2 Votes

Chicago, Illinois

Hi all, I just learned about Masterminds and was wondering if anyone knows about one for newbies? Thanks!

0 Votes

Hi all,

I have purchased one rental property but took quite a long break since then! I would like to start investing again by purchasing a SFH to hold long-term. My first investment property was under $50K but that was before housing prices skyrocketed. I did this because I hate the thought of being in so much debt, gives me anxiety. Do you think it's feasible to find a property in decent condition for this price again (under $75/50K) as my first property didn't need a tremendous amount of work? If so where is the best place to start looking in your opinion? Or would you advise I wait to see if prices decrease again? Thanks!

1 Vote

All Forum Posts by: Courtnye Nicole

Courtnye Nicole has started 7 posts and replied 35 times.

Post: Should I sell Park Forest, Illinois

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