investing Homes and condos under 30k (Chicago, Chicago Heights: low income, leasing, mortgage)

[BullBoxer31]

Neighborhood like Auburn Gresham is it work investing and leasing a a rate of $500 a month.. Or in Chicago Heights, any thoughts i would appreciate it im from Texas looking something to put my money to work in perhaps pay my rent where i live.

[jwaiter]

Go for it, great deal.

[chet everett]

What exactly do you propose?

Do you have any experience being a landlord with local properties? Do you understand the challenges of collecting rent and maintaining a property even when you can personally visit a low income tenant face-to-face? Do you understand that many homes in Chicago Heights have ANNUAL property taxes that are about 10% of the value of the home? Do you know that no lender would finance such a small mortgage; do you really want to risk $30k in an area that is unlikely to do other than decline for the foreseeable future? The difficulties when trying to use a remote property management firm in a lower cost situation would very likely make this a losing proposition.

I'd strongly suggest that you consider areas closer to where you live, surely there must be low priced properties in Texas...

[BullBoxer31]

My thoughts were to have it listed in the MLS i think they quoted $250 one time fee and its a year to get it listed or hire a management company. I don't have any experience. But i would like to put my money to work and earn me something. I saw the taxes in Chicago heights were quite high i think i saw one for $2,200 that's $183 a month if i divide it by 12 months. Of coarse something with low taxes. I know Indiana has way lower taxes. Here in Texas homes cost a lot. So when i saw this in the Midwest cities i was very surprised. I know that no lender would finance a small loan so i was thinking of cash purchase. I made a mistake once an bought a home and got spooked so i sold it almost a month later without doing anything to it. it was almost move in condition. i bought it for 18k and sold it for a small loss. I regret it. I'm not sure if i'm able to post a link from realtor, here maybe you can help me with an input to see if its a good purchase.

thanks

[CGab]

Originally Posted by BullBoxer31

My thoughts were to have it listed in the MLS i think they quoted $250 one time fee and its a year to get it listed or hire a management company. I don't have any experience. But i would like to put my money to work and earn me something. I saw the taxes in Chicago heights were quite high i think i saw one for $2,200 that's $183 a month if i divide it by 12 months. Of coarse something with low taxes. I know Indiana has way lower taxes. Here in Texas homes cost a lot. So when i saw this in the Midwest cities i was very surprised. I know that no lender would finance a small loan so i was thinking of cash purchase. I made a mistake once an bought a home and got spooked so i sold it almost a month later without doing anything to it. it was almost move in condition. i bought it for 18k and sold it for a small loss. I regret it. I'm not sure if i'm able to post a link from realtor, here maybe you can help me with an input to see if its a good purchase.

thanks

MOST of Illinois taxes are high! And why would you buy in Chicago Heights? Are you familiar with the area at all? Chicago Heights is NOT a good area. That's why the houses are so cheap. Indiana has property taxes capped at 1% of the assessed value. You could find lot's of homes under $50k that would yield you a higher profit because of the taxes. Look in area's like Merrillville, Griffith, Highland, Hobart and Gary.

[knitgirl]

STUPID idea to try to manage a rental from a distance. But Chet, you're wrong about the mortgage. I work in the mortgage division of a mid-sized bank and we do small loans like that. I'm sure the bank doesn't make any money on those loans, but I think it may be required as part of our fair lending guidelines. I think we do mortgage loans as small as $20,000.

[NealIRC]

Originally Posted by chet everett

Do you know that no lender would finance such a small mortgage;

???

Knitgirl beat me to it.

[CGab]

I think you have to put 20% down though if the property is not going to be your primary home such as for a rental????

[chet everett]

Originally Posted by knitgirl

STUPID idea to try to manage a rental from a distance. But Chet, you're wrong about the mortgage. I work in the mortgage division of a mid-sized bank and we do small loans like that. I'm sure the bank doesn't make any money on those loans, but I think it may be required as part of our fair lending guidelines. I think we do mortgage loans as small as $20,000.

There are certainly programs to help low income home owners acquire affordable housing but all legitimate lenders would be extremely reluctant to finance an out of area buyer for an "investment property" that is so cheap.

It is one thing for lenders making those loans to folks that will live in the property but for "investors" I cannot imagine what the rate premium might be...

[NealIRC]

Wait, original poster said from Texas, did not say will relocate to Chicagoland or stay in Texas?

Strange.