Newbie - feedback please

[Lori L.]

Hello everyone!

I was referred here from another site. Lots of good info and brains on here! Thank you for sharing your experience and expertise. It's very much appreciated.

I believe I'm an unintentional real estate investor. I'm a landlord and considering doing something along of the lines of a house flip (although I'd live in it).

I'd like your voice of reason, encouragement, etc. on what I'm looking at doing please. Here are the details:

I currently own a condo in IL. I've had a tenant in it for about 2 years because I can't sell it for a decent (in my view) price. Rental income covers my expenses and a provides a very slight bit of income.

I live and work in another state and have been renting a small (800 sq. ft - 2 bed/1 bath - no closets) for $1800 a month (location, location). I've been in this house for 2 years and I'm climbing the walls. I need to move. That means paying $2000+ in rent or buying a distressed property for about $185000 - closing costs included - and renovating it. I'm targeting not so cosmetically pleasing houses in great neighborhoods. Equivalent neighborhood comps are $250k selling within 60 days.

This will kill many of you, but I'm not looking at making a lot of money by buying a new house. I just can't stand throwing $2000+ at rent month after month. I'm financially stable and make a good living so the down payment and two mortgages (my condo and new house) aren't an issue.

I've run various scenarios with the current market activity and think that as long as I live in the place for at least 2-3 years and do most of the renos myself, I won't lose any money (worst case scenario). If I stay longer or if the market gets better, I could even make some money.

Thoughts on this? Good idea? Crazy out of my mind?

Thanks!