Rental Property Analysis w/ High Taxes
How do turn a property with high taxes into a rental property?
I am moving to the Chicago area for work and am looking to buy a home that will eventually rent once we move again in a few years. The most difficult part of the analysis is the high property taxes along with the rental fees, and mortgage difficult to keep within my housing allowance. Most of the properties like this one that I have analyzed require an offer of between 60-70% of the list price. I appreciate your thought on making this deal work and if I have my fees in the right place for north Chicago.
John
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Most Popular Reply
Just part of the game here. Illinois/Chicago has high property taxes compared to many mid-sized cities/metro areas. That has been the case for decades and won't be changing anytime soon. We have to price it into our model. Fortunately though we have a strong and steady rental market, so while our returns might not be the highest, I feel positive about the long-term security of my investments in/around this city. So much so that I've sold off properties in other smaller cities and focusing just on Chicago now.