All Forum Posts by: Dan B.

Thank you very much.  In your opinion -- where should I be looking?  What type of properties should I be looking at?

Hello All,

I am willing to invest 20k in a property to generate some additional monthly income and eventually roll that into another.  Right now, the place I am looking at is a small 1 bdr apt in a desirable location of the city.  The total costs (inlcluding mort, taxes, hoa, insur) would be roughly either 800 or 900 a month, depending on a 15 or 30 year loan.  At the very least, I could generate $1100 a month in rent, however it is more likely that number is 1150, 1200, 1250, or 1300.  I plan on managing it on my own.  

I understand also that closing costs can be anywhere from 2000-4500 just because it is Chicago, yay for that.  Unless I can negotiate the seller to pay for it.

Admittedly, I have cold feet, but I am going to force myself to pull the trigger soon.  I have done research for months, I feel I have a reasonable expectation as to what I am expecting and I understand the time commitment that this could turn into.

Also, I am weighing whether I place this in a trust or an LLC? What are some of the drawbacks and advantages for each?

I am just hoping that you all can help me possibly recognize some risk I am not noticing?  Do they numbers add up in your estimations?   Do you view this as a bad play? Good play? Mediocre? I am just trying to view this from all possible perspectives.

Thanks!!!

Dan

@Diana Rdzanek  Thanks Diana, I appreciate the advice.  I have been following the Chicago AIRBNB issue closely and it seems that there will be a mandatory 4% tax that will be added to each night which will go to homeless services. 

My building does allow it and I hope to be very quiet about it to not draw attention.  I will follow your advice on screening guests.

I see that you are a real estate attorney so I was hoping you could offer some further insight. In your estimation - should I shield myself with an LLC since I will be renting the unit? Also, since this will now serve me as more of an investment property, can I now write things off like repairs to the unit, depreciation, cleaners, contractors, and all of that fun stuff?

Thanks!

Oh yes, I know all too well.  I have been researching this for awhile and it seems that out of state guest in Wrigleyville seem to be the safest bet.  Just out of curiosity what issues did you clients have with police?

Hello All,

The wife and I own a small studio apartment in the Wrigley Field area. We use it occasionally to get away from the suburbs and enjoy a night out. Recently, we have been weighing our options - sell or rent? In doing some research I am finding that AIRBNB is very successful in this area. Wrigley Field is a national attraction despite how good the Cubs are in a given season and there are no hotels near by, thus demand is high.

I understand that there are some headaches that go along with AIRBNB and it will required a bit of a time commitment on our part, which we are prepared for. All things included, the studio costs us in about $760 a month. Studios in Wrigley area are going for as much as $160 a night and as low as $87. I personally do not want to sell this and I'm hoping we can average about $1200 a month in revenue over a given year. We have taken pride in our place and it has been upgraded and well cared for, this would not change if we were to offer it up on AIRBNB.

My question to all is what can we reasonably expect in return if we were to take this venture? I have paid for the airbnb market reports in our locale and it seems viable, but instead of looking just the raw data I would like to get the opinions of some that have already taken this path.

Thanks!

We have, however, I love the option of us still using the property when someone is not in there. 

Hello All,

The wife and I own a small studio apartment in the Wrigley Field area.  We use it occasionally to get away from the suburbs are d enjoy a night out.  Recently, we have been weighing our options - sell or rent?  In doing some research I am finding that AIRBNB is very successful in this area.  Wrigley Field is a national attraction despite how good the Cubs are in a given season and there are no hotels near by, thus demand is high.

I understand that there are some headaches that go along with AIRBNB and it will required a bit of a time commitment on our part, which we are prepared for.  All things included, the studio costs us in about $760 a month.  Studios in Wrigley area are going for as much as $160 a night and as low as $87.  I personally do not want to sell this and I'm hoping we can average about $1200 a month in revenue over a given year.  We have taken pride in our place and it has been upgraded and well cared for, this would not change if we were to offer it up on AIRBNB.

My question to all is what can we reasonably expect in return if we were to take this venture?  I have paid for the airbnb market reports in our locale and it seems viable, but instead of looking just the raw data I would like to get the opinions of some that have already taken this path.

Thanks!