Moving to Chicago!!!!! (Lincoln: sales, real estate, apartments)

[medicalguy30]

Hi guys... thanks for all the advice given on this thread, it was super helpful! At the end of the day, I ended up matching in residency at the university of chicago, starting in late June. Super pumped!

Now the housing search begins. My wife and I (and our big dog) decided that we want to live in Lincoln Park. It was hands down our favorite part of the city.

I guess what I'm wondering is people's thoughts on buying vs. renting, and how to find the best rentals (aside from craigslist and padmapper, and our real estate agent, who is already helping us). Looking in the $2000-2500 range.

Regarding buying... we're seeing a lot of great stuff out there in the $400-450 range that we're interested in. We definitely want 2 bedrooms, ideally something decent size and with parking options. Of course, it makes me a little nervous buying in a new city, but we have a lot of help from friends and our agent, so I think we could muster it.

The bigger problem is my wife will be changing jobs when we move. Same field, but obviously she can't work in a hospital in NY if we're living in Chicago! So it might take an extra month or two for her to find work. Apparently we'd still qualify for a mortgage if, at time of closing, she is still at her current job, which likely she would be.

Anyway, just wanted to share that I'm excited to be moving to the city and trying something new, and if anyone has advice on these housing issues, I'd appreciate it!

[oakparkdude]

I'd be very hesitant to buy without renting first. How long is your residency?

[medicalguy30]

Originally Posted by oakparkdude

I'd be very hesitant to buy without renting first. How long is your residency?

Three years, and we'll see how long we stay after that, but plan is to ultimately move back east where family is.

We crunched the numbers, and buying does make sense in that time period, but if we rented for a year, 2 years probably doesn't make sense.

[chet everett]

I really doubt that a purchase-then-sell in four years makes sense--

[medicalguy30]

Originally Posted by chet everett

I really doubt that a purchase-then-sell in four years makes sense--

No? How come? Rates are ridiculously low, the market is creeping back up... Taking into account all of our personal finances, we stand to save about $30-40k if we were to buy instead of rent over a few years. Makes sense to me, although I do realize there's a substantial headache involved.

[sketch125]

Given your budget, you will have many great housings options in LP. I think buying makes the most sense for you, but that depends on your level of comfort on the commitment of owning in a new place.

Finding rentals in LP can be challenging, as I have found most of the online ads tend to be for those apartments that have been passed over by other renters. I have had luck with apartment agencies. Schedule an Appt. and let them take you around to see your options. I also suggest finding a intersection or a spot you guys like, and walking a two block radius around the area. You may be surprised what is listed from independent owners with only a sign on the property.

When you do find a place be ready to commit quick. The good apartments will only be available for a matter of hours. One time, I viewed an apartment, immediately filled out the app, and immediately gave the first month rent /security deposit in a check before leaving. I beat out another couple who viewed the apartment just before me and wanted an hour to think about it.

One last bit of advice is to stay close to the lake - especially if you can secure a place with parking (usually extra w/apts). The lakefront is the best feature of our city.

[medicalguy30]

Originally Posted by sketch125

Given your budget, you will have many great housings options in LP. I think buying makes the most sense for you, but that depends on your level of comfort on the commitment of owning in a new place.

Finding rentals in LP can be challenging, as I have found most of the online ads tend to be for those apartments that have been passed over by other renters. I have had luck with apartment agencies. Schedule an Appt. and let them take you around to see your options. I also suggest finding a intersection or a spot you guys like, and walking a two block radius around the area. You may be surprised what is listed from independent owners with only a sign on the property.

When you do find a place be ready to commit quick. The good apartments will only be available for a matter of hours. One time, I viewed an apartment, immediately filled out the app, and immediately gave the first month rent /security deposit in a check before leaving. I beat out another couple who viewed the apartment just before me and wanted an hour to think about it.

One last bit of advice is to stay close to the lake - especially if you can secure a place with parking (usually extra w/apts). The lakefront is the best feature of our city.

Thanks, great advice! Definitely want to be close to the lake too. Aside from the obvious benefits, I will be using LSD for commuting frequently.

I will definitely lookout for signs when we go there to see places in person. I agree, seeing places online, the rentals just don't look all that great, but there are some awesome buying options out there. This is part of our motivation to buy, of course.

We do have a real estate agent sending us rentals in addition to buys, but she seems to have access to way more buys than rentals. I wonder if we should find someone else to help check out rentals?

[sketch125]

Originally Posted by medicalguy30

Thanks, great advice! Definitely want to be close to the lake too. Aside from the obvious benefits, I will be using LSD for commuting frequently.

I will definitely lookout for signs when we go there to see places in person. I agree, seeing places online, the rentals just don't look all that great, but there are some awesome buying options out there. This is part of our motivation to buy, of course.

We do have a real estate agent sending us rentals in addition to buys, but she seems to have access to way more buys than rentals. I wonder if we should find someone else to help check out rentals?

Try one of the higher rated apartment finders agencies on Yelp. They will meet with you and show you what they have available. They also drive you around to places you are interested in.

This was helpful for me when I just moved to Chicago as they knew the city a little better than I.

[chet everett]

Honestly there are MUCH BETTER options for renting than purchase at the OP's price point in Lincoln Park. Any condo in the $400k price range almost certainly has more issues than a rental around $2-2500...

Assuming you'll be driving to UofC (as residents do not typically have a 9-5 schedule I would recommend against relying on public transit...) you will need to consider places that either have included parking or some situation that has will allow for something workable.

The complicating factor beyond parking is "large dog" and again I agree that a "pet friendly" condo or rental is not easy to find but my hunch is that if you contact a "forced landlord" who has a "condo" in a smaller building they will a little easier to talk into renting to a couple with your background than the often inflexible "community associations" that have been known to kill sales when there is "pet over the size limit" involved...

If your math factors the relatively high HOA fees that often comes along with older condos, the liklihood that property taxes will increase EVERY YEAR, and the inevitable transaction costs that eat into the (very questionable ...) appreciation I'd say you are much more optimistic than is prudent. The "uncertainity" on your $40k is very much dependent on factors COMPLETELY outside your control when you look at any "multifamily" housing situation -- just not realistic.

[oakparkdude]

Are you assuming that you will have positive equity at the end of 3 years?

Obviously we're not privy to all your personal financial details, and it is in general a good time to be a buyer of real estate, so if you rent you may forego some real estate capital gains. On the other hand, you may find the whole thing is a wash (or worse) when you take into account transactional expenses, paying for an empty property while waiting for it to sell, condo fees, etc. Given that you can anticipate dramatically higher income after residency, I would think that the risk/reward calculations would favor avoiding real estate risk (and the headaches of ownership) at this point in your career.