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Want to buy $100,000 budget (cash)

Hi
I'm looking to invest in the Chicago area - close to downtown - I don't mind size as long as the location is good and popular for rent. I am most interested of course in discounted properties - distress, foreclosures and the like - and payment can be made within a short time frame.

Could please please advise what the possibilities are and importantly, what kind of rental yield I can expect NET of HOA, taxes, agent commissions etc.
  • March 22 2013 - Chicago
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Answers (7)

The suburbs like Schaumburg, Roselle, Streamwood are close to a train line and have plenty of great investment choices under 100K.
Taxes may be about $3,500. Assoc fees about $175. No commission if you are a buyer. Buy soon and get more appreciation in this popular price range.
  • March 28 2013
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Stay away from Short Sales, Foreclosures are fine. Rental yield, HOA, Taxes are all going to be area and building specific. You'll need to factor in closing costs as well. 2-3% of purchase price you'll have to pay when buying a property in Chicago.
  • March 28 2013
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Dawood,

Your question is a good one but should really be discussed either in person or over the phone to get clear direction.  There are plenty of homes in the suburbs that could yield you a good return on your investment and are priced below $100,000.

Feel free to contact me directly at [deleted by Zillow moderator. please see our Good Neighbor Policy for posting guidelines] and we may discuss your investment real estate needs further.
  • March 26 2013
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Thanks, could you recommend any specific locations which would fit into that budget- and where rental would not be a problem.
  • March 22 2013
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Profile picture for Matt Laricy
It wont be possible to find anything close to downtown for 100k. You will have to go to the suburbs. They dont come up in the downtown market in this price point.
  • March 22 2013
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Hi Phillip

I wasn't intending to get a mortgage, 100% cash, and holding the property for 5 years is not an issue.

When I meant close, my concerns were about location (rather than being close to downtown) in that I did not want any more than nominal vacancy periods in terms of rent as I'm interested in a consistent yield.

Dawood

  • March 22 2013
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It will be impossible to find anything 'near downtown for 100K, although not sure what you you mean by 'close'. If you are getting a loan in addition to the 100K downpayment then you will have options. It is hard to make an estimate of yield because there are many variables to use to calculate it, but since taxes and assessmsnrts are high near the downtown I would say perhaps 5% return. If you want 10% forget about it.
When you buy you do not pay a commission, but some agents....like me, give a Rebate. When you rent, most agents charge 1mo rent, but I charge less.You should plan to hold whatever you buy at least 5yrs because the closing costs on the buy and sell side can be about 7% so at minimum when you sell you need that much appreciation.
It is harder to find great deals because many buildings have rental restrictions and the market has changed so most of the good deals have multiple offers.
  • March 22 2013
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