All Forum Posts by: Account Closed

 I said Chicagoland, not Chicago property. Chicago has suburbs.

@Account Closed When you look at properties make sure you analyze the HOA. You indirectly pay for roofs of condos through the HOA. If they have to make a big CAPEX expense like a roof they might have to increase your HOA dues which can kill your cash flow and depreciate the value of your asset.

@Account Closed, just recognize the fact that your return on equity is going to be extremely minimal if you decide to purchase all cash. Allocating your capital into a syndication may be a better avenue. There are certain laws and requirements behind investing in a syndication that I'm unfamiliar with, but I encourage you to look into them. FYI a lot of things can go wrong with a condo as well, but I understand your point. 

@Account Closed, you're not being unrealistic, however, as Ruchit mentioned, and what many other investors would advise, use the 100k as a downpayment on an SFH or small multifamily. Depending on location, condos do not nearly appreciate as much as SFH. Moreover, HOA dues eat into cash flow and the board could vote against rentals in the community. Just something to keep in mind moving forward. Hope this helps!

The country is filled with good deals, however, for a total price of $100K, you have to look in 2 out of 5 or 3 out of 5 stars neighborhoods. 

Can you elaborate on your goals? In-general, if you choose to leverage money, a lot of cash flow can be made with $100K down. 

Chicago we have a lot of class B condos for $100k range. For example a 1br in Rogers Park. It's a middle class area and when you have nice units (in unit laundry, stone, etc.) you actually get 700+ credit tenants. I have 4 units there. It's easy to self manage even from out of state with a handyman on call. $100k 1br rents around $1200 so works well. 

Look for low rise buildings (NO ELEVATOR) as these tend to have low assesments. Also no pool or doorman or anything like that. You don't want to pay for that stuff as an investor. Many of our condos have $200 assesments and barely any specials.