Prior to really spending some time looking, I had budgeted $2500 for rent + parking in downtown Chicago. Upon looking, seems like my budget is no longer realistic; I'd likely have to pay a couple hundred more to get what I want.
Anyways I found this property that seemed decent and was curious on whether it would be a financially responsible purchase considering it's HOA fee.
$315k selling price, $470/month tax, $762/month HOA fee (includes insurance) @ 5.75% with 10% down.
Total mortgage comes out to $2703/month. Since I would start itemizing deductions I calculated a tax refund of $1865, or $155/month, bringing my total net mortgage cost to $2547/month.
I looked at what comparable units are renting for and if I chose to rent after some time, I would likely be breaking even, if not cashflow positive.
It's a large unit on the 40th floor with some nice views, good finishes, parking included in the price.
Is it worth buying for a first time property? Seeking some advice, please..
byu/mirenjobra88 inRealEstate
Posted by mirenjobra88
2 Comments
Is this property in one of those buildings like a co-op? Where the other owners have to approve of your buying an apartment in the building?
At the price you indicated and being in the city of Chicago, this would be my concern. First, having the other owners approve you and second, how much more difficult these properties are to sell and the much lower levels of appreciation you will see with this property.
I don’t know if this is the type of property you have found???
sounds terrible. Rent until your desire is completed. Buy home and rent out in suburbs. I now own 8 single family homes in suburbs of Chicago.