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NW IL | We have a little rental. After putting 20% down and doing some repair work we figured the cost of the mortgage, taxes, insurance, utilities. Then the replacement costs for roof and furnace after 20 years and appliances after 10 years. Added in some for occasional flooring and paint, factored in a certain vacancy period, and based our number off of all that. It works for the clientele we are renting to but we are a bit above average on rental rate.
Know your costs, especially longer term maintenance. A well cared for house can gain value, but a poorly maintained house can loose it too.
Here $60,000 will get you an ok 1-2 bedroom house, 120k can get you a 3-4 bed, 2 bath house (in town).
Anything in the country seems to be selling for 250-500k. We're too close to the Chicago people that want to live in the country with a few acres. | |
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Rental house market
