r2i forum

I know lot of people bought apartments in india and renting, there is a thread about the problems of renting apartments in india like local dada's, renters won't pay etc.

By thinking all this I am wondering how it would be if I buy a condo or town home in the downtown(chicago) area and rent, I will get income from the rent and its safe(no dada business)? Has anyone done this? If so can you share your experiences?

thanks in advance.

I would be paying for the entire condo price which is $98k, anybody know how much it costs to hire a property manager and their costs? property taxes would be around $300. The codo is a one bed room, and can easily rented for $1000.

You're getting a one bdrm condo in Chicago downtown for $98k?
wow dude! - that's a steal.

I know friends who've paid $1000/month to live in drab studios.

How close is your condo to the club scene?

I think property management typically costs around 10% of the rent. You need to get a good company to manage your property though.

But, many people do what you have mentioned but with one difference. They leverage by paying only 10% or 20% and take mortgage for the rest. There will be a small positive cash flow even after mortgage payment and taxes are paid.

Actually its not in downtown its in cumberland. I just verified the rent is $875 per month for this 1 bedroom apt.



What are the advantages of buying with full money or through loan? If I buy with full then I can see little bit more positive flow correct?

First, you need to identify the properties which can give you positive cash flow

i.e Rent - PM expenses- other expenses-mortgage-taxes = +ve.
You need to search a little bit but is not impossible to find.

The advantage of taking loan vs. paying full is you can buy more such properties for the amount of money you have so you can realize more cash flow as well as more capital appreciation. Instead of buying one 100k property paying full cash, you can buy five 100k properties with 20% down payment each.

Also, if you buy 100k prop with 100k down payment and it appreciates to 110k, then you have made 10%.

but if you buy the same 100k prop with 20k down payment and it appreciates to 110k, then you have made 50%.

http://video.google.com/videoplay?docid=-1393776214264698170

Subprime problems in discussion with Charlie Rose.

It depends if you are well connected to India or not. That means is somebody there to help you in India in looking after your property. Secondly, your long term plan is to come back or stay in US. Invest in right spot in US, which is at rock bottom and you can get returns.

Thanks in advance,
Amli