All Forum Posts by: Sarah Miksa

@Tony Angelos thank you for your input! I agree the 7% rates really don’t make much sense at this point and the 45k investment will hold up significant capital. I may rent it out and find a cheaper rental until the market makes more sense to find a duplex. My goal is to cover monthly housing expenses and then eventually to cover cost of living expenses beyond that by purchasing a few mid term rental properties. I’m not in a rush or expecting it to happen tomorrow, I appreciate the advise to hold for now. 

@Jonathan Klemm thank you!! I really like the approach to start with the numbers then bring in intuition. I am leaning toward renting it out as is and finding a multi family/duplex when rates settle down. 

@Paul De Luca thank you! I agree, I wouldn't be able to manage a STR with my current job so focusing on MTR for the rental rates here and ease to manage.

@John Warren thanks so much! I am with you, my place is in the heart of Lincoln Park (by the armitage brown line). I have researched some other mid term rentals in the area all around 3,000, which will cover my carrying costs. I bought at a great deal for the area 284k. I am debating adding another bed and minor cosmetic updates as a cheaper option to force overall appreciation for a higher monthly rental rate. While the added bathroom is possible, it’s a lot of cash up front and comes with some hefty risks and unknowns in comparison to the ease and appreciation possible with only adding a bedroom. Thanks again :)

Totally, thank you! Luckily I found a good contractor and have HOA approval for the project (very lucky I know) I do have the reserves but eventually wanted to purchase a duplex to split and while the house hack will help with monthly costs with interest rates so high it still won't cover all monthly costs so I think using the 45k for another down payment is the way to go. For much less I can turn the dining room into a bedroom for higher monthly income.

Hi Ko!

Yes, I own the property! And yes, moving out and purchasing another property to house hack (and use the bathroom renovation budget for a down payment) is an option for me!

Hi! I currently have a large 1/1 with a ton of space in a highly desirable location in Chicago. With interest rates being so high and it being a condo I pay just under 3k/month. The condo surprisingly has no limit on rentals, as confirmed by my lawyer I could Airbnb it if I wanted to. Right now I have a very demanding 9-5 and don’t see running an Airbnb as an option right now. I have a great contractor and have explored adding a bath for 45k and/or add a bedroom (removing the large dining room). If I add a bath I could split the unit and house hack, however I don’t see it covering all of my housing costs/renovation cost at least for some time. Alternatively, if I left the unit as is, or added a bedroom for a much smaller cost by removing the dining room, I could rent the entire unit out on a short or medium term basis, for at or above the monthly cost, then look for a separate house hack with a bath already installed. Many thanks in advance!

Hi Ace!

Thank you for the advise! The 10 year perspective is helpful. :) Surprisingly, the HOA has no lease minimums, my real estate lawyer confirmed when I bought there is nothing limiting me from renting it on Airbnb (which was her suggestion lol). I do currently work full time so I would like to put it up on furnished finder as a 1-3 month minimum rental to start out and be able to run background checks etc. I appreciate your input on a 2 bed/1 bath for long term rates, that does seem to have the best ROI and less risk overall!

I just bought my first investment, a condo in the heart of Lincoln Park Chicago. It is a huge 1/1 with 2 private outdoor spaces near safe public transit/depaul university. I am exploring two options as a new investor. The first option is to add a full bath (around 40-45k) and then house hack the front as a short term rental and live in the back half of the unit. Alternatively, there is space to add a second bedroom. I could add another bed and then move out into a cheaper apartment and rent out as a 2/1 short term rental. The short term rentals rates are at a premium in this location and I am trying to determine the best investment option as someone new looking to renovate with the above options and rent either half or all of the unit. Thanks in advance!