Should I sell or hold onto a condo in the South Loop? (Chicago: rental)

[thesilo]

Hi all,

I bought a condo about two years ago in South Loop for $300k. I'm near 18th and Michigan, so definitely not the trendiest part of the South Loop, but with the growth of McCormick Square, Motor Row and some adjacent developments, it's solid and improving. I have to leave town for work for about 9 months, beginning in the fall, and I'm trying to gauge whether it's wisest to sell the condo or hold onto it. Unfortunately, my building is at the rental cap and we're about 10 on the wait list, so it's unlikely I'd be able to rent the place during this period. Because I don't have a long-term plan to be in Chicago, I'm reluctant to have it sit empty for this amount of time, as that's about $2000 a month in payments "lost." I'm also am aware that the condo likely hasn't increased in value and won't increase much between now and say 2021. I could be wrong? I didn't necessarily buy the place as an investment, but I've heard mixed things as far as mortgage lenders not looking favorably on people who buy and sell homes this quickly (I owe about $220k). I don't plan on buying another home until probably 2021 or 2022, but I'd like to gauge how much this decision could impact me buying a place down the road.

[smegmatite]

if you're not going to live in it, or be able to rent it out, definitely sell it as there is literally zero chance you'll see 8% appreciation annually or whatever to cover your 2k a month lost

[OKParker]

I would assume it will appreciate 2-5% annually.. and there are costs associated to ownership, so if you can't rent it out and don't plan on living in Chicago after the 9 months then you may want to sell.

[Vlajos]

If you plan to come back hold it, if not just sell it.

[projectmaximus]

If there's any way to rent it to a trusted friend or relative I would do that. Otherwise you probably ought to sell it.

[thesilo]

Great, thank you all for the feedback!

Any thoughts on whether selling before or at 2 years of ownership will negatively affect you with lenders in the future?

[smegmatite]

Originally Posted by thesilo

Great, thank you all for the feedback!

Any thoughts on whether selling before or at 2 years of ownership will negatively affect you with lenders in the future?

any loans paid off after 3 months of on time servicing will actually positively affect your credit rating