Updated about 12 years ago on . Most recent reply
Newest Member from Northwest Suburbs of Chicago
Hi everyone,
My name is Joe and I'm a newbie to real estate investing. As mentioned, I'm from the northwest suburbs of Chicago. I have always had an interest in getting started in real estate investing. As a current town-home owner, I have seen how fast my neighbors have rented out their homes. I'm considering putting a 20% down payment on a newer town-home in the area, obtaining a 15 year fixed rate mortgage, and renting it out. When running the numbers the expected rent would cover the mortgage (escrow included) and leave $100-$200 off the top to set aside for repairs/renovations. I'd like to keep this going for just 3-4 years, then sell. The thought being to turn a $30K downpayment into $70K in equity (Assuming a 2 - 2.5% appreciation rate). While this all sounds good in theory, I certainly realize their are no guarantees regarding lending, renters, buyers, and appreciation, not to mention unexpected fees like closing costs and realtors. My question is: Is the payoff worth the extra headaches and concern?