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Ryan Marker
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Condo in NW IL Burbs - Keep renting or sell it?

Ryan Marker
Posted Aug 23 2018, 20:34

I bought a 2 BR 2 BATH coach house in the NW burbs of Illinois in 2004. I was 24 at the time and it was my first home purchase. The coach house used to be my primary home. When I lived in it, I was renting out the 2nd bedroom to friends. Then, my wife moved in with me. When we started having kids we needed a bigger house, so we moved out and kept the unit and just rented it. I paid $140k in 2004 and owe $108,500k on the mortgage. The $108,500k includes the principal, interest, taxes, and insurance. It's renting for $1,100 per month. My monthly mortgage payment plus HOA fees total $930.13. This year, I've gotten really lucky and have not had any cap ex or repair services yet this year. However, in the event it does require some this year, I'm not cash flowing and more breaking even every month. The condo units in this complex lost a lot of value during the market crash and just now are going back up in value. The condo unit in the same building across from my unit with the same square footage and layout sold for $126k in June of this year. Five years ago, these units were only selling for $80k. My current very reliable tenants have hinted that they will be moving out when their lease ends in March of this year. The area is nice and is in within walking distance to a commuter train to Chicago. There are lots of good restaurants in the area and is close to the downtown area of the town. I'm just trying to determine if I have a rental property I should hold on to, or if I should I sell it and make the $20k in equity while I can and invest that money somewhere else. I'm a complete newbie and only have this one property that I'm renting. I'm in the process of learning how to make it possible to purchase more real estate and have some cash flowing properties for passive income. I'm hoping to purchase some single-family homes and rent them out in the next 5 years or so. Can you help with analyzing this rental?

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