Updated over 3 years ago on . Most recent reply
My First Property in Illinois
Investment Info:
Condo buy & hold investment.
Purchase price: $116,000
Cash invested: $7,654
Property is part of a larger apartment complex in the northern Chicago suburbs.
Description is rather simple. Square footage does not exceed 860. One washroom. A small kitchen. 1 1/2 bedrooms. Vinyl flooring. The prior owner added 2 new windows.
Plenty of storage, outdoor patio, exterior parking space and taxes were moderately low until 2021 (i.e unit was appraised higher, etc.)
The neighborhood is rather safe and moderately close to more affluent suburbs like Rolling Meadows.
What made you interested in investing in this type of deal?
The Chicago Bears for many years have considered playing their homes games in Arlington Heights, IL.
And in my view, having a Condo in a region with a new influx of businesses and residents meant I could expect price appreciation and rent growth.
How did you find this deal and how did you negotiate it?
Redfin
How did you finance this deal?
FHA Loan with 3.5 down payment
How did you add value to the deal?
Not much with a few key exceptions.
For one, I added a few touches; including adding 2 new Air Conditioners and a ceiling fan along with a new microwave and a single oven.
What was the outcome?
Overall, very positive.
As a single unit, due diligence is a key factor.
I sought to find the best tenants possible. And in my experience, this is perhaps the most important component related to risk management when operating a single unit condo.
Even during the pandemic, my talents paid on time and were not late on their invoices. No evictions.
Lessons learned? Challenges?
Due to inflation, despite higher appraised values; property taxes increased and this may impact our ability to maintain a positive cash flow on our Unit.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes.
An agent.