When the market is being driven by short term investors looking for big appreciation gains in a short time period, then the market can become artificially inflated, with the short term investors just selling to other short term investors in a nasty repeating cycle that drives up the price of real estate.

Operating costs (pool, lawn, insurance, taxes, prop mgmt) are $800/month.

Dirt lawn with knee high weeds, peeling paint everywhere, fence needing repair.

It's pretty clear that real estate values have re inflated to pre recession bubble values in many areas as a result of artificially low interest rates.    

Some of the pro's are you don't have to worry about tenant not taking care of lawn or snow.

It had the assessment at $647 a month which includes Gas, Includes Common Insurance, Includes Doorman, Includes TV/Cable, Includes Exterior Maintenance, Includes Lawn Care, Includes Scavenger, Includes Snow Removalhttp://www.redfin.com/IL/Chicago/3950-N-Lake-Shore...So, if you get it at auction at that price your expenses would bePayment $491Assm $647Tax $142$1280 monthly paymentI know the area well, I used to live at 3420 N LSD - for an 11x10 bedroom I would expect you to get $700 ish for rent.Also, with condos you have a limited exit strategy.  

They might not have a for sale sign on the front lawn, but all of my houses are always available if a buyer just has to have one. 

The new restrictions bar residents and commercial water users from using drinkable water to hose off sidewalks and driveways, water lawns or gardens to the point of causing runoff, wash cars without a shutoff nozzle and using potable water in fountains.California drought: $500-a-day water fines passed

. $500 (rounding high for easy figure, based on GFE from bank a little bit lower)HOA- $340/month, just updated by HOAInsurance- $271/year or $22/monthRent- $950/month$500+$340+22=$862/month in total costs, so $1,000-$862= $94/month cash flowMy thinking could be nieve, but I just believe that I will never have to pay for new roof, damage to the property (outside), lawn care, pool maitenance, etc.

This is another place where a building inspector could help warn you about any major repairs that may be coming due in the near future (new roof, new heating/AC, etc)Property Filter strategyProperty must be in price ranges of 25000 to 675,000 with the maximum including repairs.Must be maximum 25 years oldMust NOT have nearby UN-clean properties Ex/ non maintained lawn, crumbling roof/structure, torn gates, abandoned cars and possible current crime related houses Must not have major issues or structure issues,examples include an unstable foundation, and big holes in the roof or walls.Seller must be willing to pay 50 percent closing costsMust not have taxes that go over 8250 annually Must have at least 25% in equityMust have the potential rent value of at least 500Must not have more than 2 mortgages on the propertyDocumentation to ask the seller for:Leases/rents for the past year, Tenant applications and screening procedures, tax returns for the past 2 years, also income and expenses for the past year, current rent roll (including unoccupied units, unpaid rents, and concession losses), List of improvements on property in the last 10 years.Documentation of all loans against propertyAvoid all illegal conversions or constructions.Avoid houses with no electrical wiring or AC or plumbing or if these criteria are severely damaged.Property must have cash flow of at least a total of 100 dollars.Plan for Financing At 18 years of age I will start investing in Multi homes with a loan called 203b mortgage (an FHA loan).This will allow me to only put up 3.5 % as a down payment and have a very low interest rate of around 3.5-3.9%.This loan requires me to live in the property for 1 year + though and have mortgage insurance, and so I will live in one unit while my other 1 or 2 units are rented out while I attend college.My down payment and closing costs will be from saved money from jobs in fast food and other work areas from beforehand.I will use 30 year fixed rates.Steps to take in the whole process:Have my attorney write up my contracts beforehand which include ways to exit before closing, financing terms, closing costs being 50/50 split , make sure the sellers future property info is accurate and reliable or else he is accountable and everything else he/she recommends Have my loan prequalified beforehandMake a lowball offerNegotiate until an offer is accepted or you have hit the buying price limit, or the 70% ruleOnce an offer is accepted inspect the house thoroughly by an appraiser and an inspector and take lots of pictures and videosrequest these forms:Leases/rents for the past year, Tenant applications and screening procedures, tax returns for the past 2 years, also income and expenses for the past year, current rent roll (including unoccupied units, unpaid rents, and concession losses), List of improvements on property in the last 10 years.Documentation of all loans against propertyIf the deal is still sweet, go ahead and continue with closing and finalize the deal Hire a property manager with at least 3 recommendations and question him about      these areas of work, also ask for a complete list of all past clients contact numbers.