Hi, I'm looking into some new constructions in Crown Point, IN. Some data that I pulled shows that a nice 4bd/2.5ba can rent for $3500+. Some new constructions of this size are priced $380-$400k. Definitely doesn't meet 1% rule but what does these days? Builders are looking to offload inventory and giving some concessions. This would be a long term buy and hold for me and more of an appreciation play with a bit of cashflow. My question is, are these rent numbers inflated and expected to come down? Is there strong rental demand in Crown Point? I live in Chicago and the way I see Crown Point is a quality suburb with top schools.
Real Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
2y
Hey Chintan! 👋🏽You're absolutely spot on with the renal prices, but keep in mind that seasonality makes a difference as well in terms of when you rent the place out. Summer months are more in demand which means you can probably get the house rented out at a higher price. Crown Point is beautiful, and as a dual-licensed agent in IL & IN, I am seeing SO many people jump to Indiana, specifically Crown Point, Munster, Saint John, etc.
Builders are also handing out concessions with lower interest rates so it's worth it! you can't beat those prices and definitely harder to find in IL
& I agree, who cares about the 1% rule if you're putting down 20% or more, what really counts to me is CASHFLOW. 😃
Real Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
2y
Hey Chintan! 👋🏽You're absolutely spot on with the renal prices, but keep in mind that seasonality makes a difference as well in terms of when you rent the place out. Summer months are more in demand which means you can probably get the house rented out at a higher price. Crown Point is beautiful, and as a dual-licensed agent in IL & IN, I am seeing SO many people jump to Indiana, specifically Crown Point, Munster, Saint John, etc.
Builders are also handing out concessions with lower interest rates so it's worth it! you can't beat those prices and definitely harder to find in IL
& I agree, who cares about the 1% rule if you're putting down 20% or more, what really counts to me is CASHFLOW. 😃
Chicago, IL · Member since 2017 · 175 posts · 86 votes
2y
Hi Chintan, i work in hammond and have a couple co workers who just bought new construction in crown point i know some builders will buy down your rate also. I trust Eudith with rents as she is an expert in the market! i also agree with her that cash flow is the key and a $3500/mo renter is gonna have HIGH expectations in the midwest. one of my units is rented at $2500 and i had to triple clean it because expectations were higher than what i provided. @Eudith Vacio i’m curious what % of the total NWI $3500/mo is top 5%?
Chicago, IL · Member since 2017 · 175 posts · 86 votes
2y
also to be candid i have two co-workers who built in similar new development subdivisions down there and both had major issues with the builder- e.g workmanship issues, exterior work delays etc… which builders are you looking at?
@Connor O'Brien Lennar was one of the builders I was looking at. I'm just not sure how sustainable $3500+/month rent is. Part of my decision is also for potential appreciation. It's a long term investment where I'm not bleeding money.
Rental Property Investor · Crown Point, IN · Member since 2018 · 53 posts · 17 votes
2y
@Chintan Sheth - Crown Point is defintely a nice rental market with higher rents.
This development is in the works and will have Approximately 200 homes that will be strictly rentals. They have a few of these developments around the country and this one is being built right off I-65 in Crown Point. It's definitely going to add a lot of rentals to the area that may compete with your plan.