I’m in the Chicago burbs.
Purchased for 472,000.
Rent in the area is 2,500-3,000. Most I could list for is 3,250 monthly.
That’s coming up with a cap rate near 1.75% at a 2,800-3,000 list. It’s a very nice home in an affordable area. Solid location to train, park district, highways, but on a slightly busy road.
Mortgage is 2,300 with PITI. I could refinance then rent bringing the PITI down to 2,000. I have a strong cash position to make a slight return, but not when you start accounting for time.
It would be my first rental.
If anyone wants to follow through on how they made the jump with their first home then converting that into a rental, buying another with the timing, I would appreciate the advice. Trying to rent it out then buy quickly.