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Should I sell it next spring?

  1. Yes definitely

    0 vote(s)
    0.0%
  2. Maybe - depends (explain)

    1 vote(s)
    100.0%
  3. Definitely not - hold onto it

    0 vote(s)
    0.0%

Advise on Chicago property - should I sell?

Discussion in 'General Property Investment Discussion' started by SarahKam, Sep 7, 2018.

  1. SarahKam

    SarahKam New Member

    I purchased an apartment in the Chicago area near my university campus while I was studying back in 2006. Of course they gave a full-time student with no real income a mortgage with just 20% down payment back then. Anyhow I've held onto this apartment since then and it's been leased. But each month I have to put in cash to account for all its expenses. I tried to sell it two years ago but I had to put in 10-15K to close to deal. At this point I paid down its mortgage enough to probably be able to sell it without having to put extra cash. Note that we bought it for 210K and now it probably won't bring in more than 170K. Interest rate is fixed 7%. What would you do?
    PS refinancing is not really an option because I live abroad, work abroad and it's an investment property.
     
  2. Maybe look at increasing rent on the property? Otherwise you are banking on a capital recovery in the local property market. How has property in the area performed of late?
     
  3. SarahKam

    SarahKam New Member

    I just increased rent from 1450 to 1550, but this 150 increase will cover the management company I just hired. Overall I have negative cash flow each month and rent cannot go up higher.
    The property performs similarly to other properties in the area I would say. The Hyde Park area has not improved much since the 2008 crash and right now it's at its highest since then. I think that we will not expect any more improvements in the next 2-3 years.
     
  4. FWL

    FWL Member

    Is there any way you could convert it to what are known as HMOs in the UK? That way you can rent out private bedrooms and have shared areas? I know this can sometimes significantly increase rental income.
     
  5. realdeals

    realdeals Member

    If you do not see an increase in the property market in the short to medium term and there is no way to improve your cash flow then you may have no other option but to sell up.
     
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