All Forum Posts by: Ed S.

Hi Brie,

Super informative, and I really appreciate the time you took out of your morning for me.

If the cashflows NEVER work out in Lincoln Park, then what is keeping the values up?

With your math, I see how living there will cost me around $300/month.  Now here's the crazy part.  I am almost consciously willing to take that additional expense in order to continue my lifestyle.  Are there just a bunch of idiots like me willing to purchase these homes even though the financing doesn't work?

If I am crazy enough to continue living here at a loss, would I be better buying a comparable $400k condo for myself and a cash flowing rental elsewhere?  Looking back at the two flat, I would consider my floor a $400k a "sunk cost" and value the second floor rental at a prospective cost of $200k?

Single flat - $400k

Two flat - $600k ($200k difference)

Please do set me straight.  I'm tired of paying rent to someone else, but not willing to part with my location.  If you wanted to get into the property game while personally living in Lincoln Park, how would you do it?

Hi Brian,

Appreciate your honest feedback.  I think I see many of the same factors, but I don't want to admit it!  Hearing it from a 3rd party helps me solidify those feelings. 

Perhaps it does make more sense to continue renting here and consider a separate investment property in another neighborhood like Ukrainian Village.  I am not personally ready to move, though I certainly see the value in rental cashflows.

Greetings BP,

Long time lurker, first time poster. I've been renting in Chicago for 3 years, and I am ready to make the move into a home purchase.

Objectives:

• Buy multiunit building and hold for ~10 years
• Stay near lakeshore in Lincoln Park
• Keep personal costs near current rental ($2000/m)

Could you give me a quick opinion on numbers, please?

Income: $145k

Current Downpayment: $60k

Target home price: $600k

I've found this two-flat that fits my target.  The neighboring single story (with curb appeal) just sold for $800k.  Mine definitely needs some cosmetic work, but appears that the big tasks (plumbing/electric/hvac) have already been completed.

https://www.redfin.com/IL/Chicago/223-W-Menomonee-St-60614/home/13345194

Monthly balance

Mortgage payment: $3000

Taxes/Insurance: $1000

Rental income from 2nd unit: $2000

Do my numbers sound sensible? Would you recommend any other property types?  I am personally attached to the Lincoln Park neighborhood.  Should I keep renting here and buy a specific investment property in a cheaper neighborhood?  

Totally open to your feedback.  Thanks for all of the great resources on here!

Ed