All Forum Posts by: Sarah K.

Unfortunately no - the association only accepts 1 year leases and does not allow short-term rentals or even sublets. There are too many limitations in the condominium, and thus it is not the ideal building for an investment. Investors were interested, but there's a waiting list for renting and any new buyer gets bumped to the back.

Did you look into using something like Plastiq? There are fees and I am not sure about the limitations, but they basically allow you to use your credit card to pay for things that normally do not accept credit card payments (mortgage, student loans, etc.) via cheque which they send on your behalf after charging your credit card.

Hello all - as an update, I finally listed the apartment for sale over a month ago and it has yet to receive an offer. It looks like there's a lot of inventory in Hyde Park and little movement. I think my unit is unique because it's a 2-bed and 2-bath with in-unit washer/dryer, storage space, minimal assessment fees, and I believe it is priced to sell. We have had 20+ showings and no offers even though all agents who saw it said that it is well-priced and showed well. Tenants move out September 14 and I really need to get it sold. There's one other owner on the waiting list for rentals, so it's not well positioned for an investor buyer even though its location is ideal for that. 

Any suggestions?

Also be sure to read association guidelines. Mine only allows 20% of the units to be leased at any one time and there's a waiting list. Even if you buy a unit that is tenant-occupied, you get pushed to the waiting list when you are a new buyer. Also my association does not allow leases that are less than a year long. I've held onto the apartment I lived in while at the University of Chicago since we bought it in 2006. We bought it when prices were very high and the interest rate was insanely high. It literally lost half of its value after the crash. I was never able to refinance, and the apartment never cash flowed because of that and the association fees. The positives is that the area is great and I've been able to find tenants without any trouble for nearly ten years! I have had a mix of people, including graduate or undergraduate students and professionals. Good luck!

Thank you all for the responses. This sounds like an overwhelming vote for selling. Since I can't afford to have it empty I just leased it out for another year and will have to put it on the market next spring. I will hire someone to conduct a CMA and see where things are by then.

Thank you for your response Frank. Here are answers to your questions:

How much are you currently receiving in rent?

Just bumped it up this month from 1400 to 1550

What's your cash flow?

None. I just hired a management company so that 6% or the monthly rent each month. Association fees are 320 (they also added a special fee for the next 7 months bringing it up to 420), insurance is just 300/year, my mortgage plus escrow is 1455 monthly. You could also take into account the one month rent I put down for agents to get me tenants then I’m over all in the negative.

Can you cut back somehow?

Living abroad, I managed the unit and its repairs remotely entirely until now, but it is too difficult. I don’t see how I can cut back. The interest rate is the main issue in my eyes and refinancing isn’t good option evidently when you live and work abroad.

Are you sure about the sell price?

Right now on Zillow it is estimated at around 175-180. Two year ago it estimated at 170 and I only got an offer for 159K. Right now I see markets slowing so I don’t expect an increases anytime soon.

Can you increase the price by doing some repairs?

It is already in good condition as a whole. Nothing I fix will bring it up to the point where I can justify increasing rent more in this area or increase its sale price enough to bring in any of the losses we already took.

To me it sounds like I should get rid of it. I put in extra monthly payments to reduce the term of the loan so that it’s fully paid off in ten years instead of 18. Also I don't need a tax shelter because I live abroad and earn less than the threshold amount required for taxation. 

Should I up my capex by increasing my monthly payments on the mortgage more aggressively? I could afford that but I don't think that the ROI will ever even after I get rid of the mortgage will justify the massive capex.

I purchased an apartment in the Chicago area near my university campus while I was studying back in 2006. Of course they gave a full-time student with no real income a mortgage with just 20% down payment back then. Anyhow I've held onto this apartment since then and it's been leased. But each month I have to put in cash to account for all its expenses. I tried to sell it two years ago but I had to put in 10-15K to close to deal. At this point I paid down its mortgage enough to probably be able to sell it without having to put extra cash. Note that we bought it for 210K and now it probably won't bring in more than 170K. Interest rate is fixed 7%. What would you do?

PS refinancing is not really an option because I live abroad, work abroad and it's an investment property.