Buying a rental property in Chicago. Should I wait for Feds rate increase???
I'm looking at 2 bedroom on the Northside (lakeview/uptown area, or even burbs near metra station) between 150-200k. What I'd like input on is 1) If Feds do increase interest rates thus making it harder for obtaining loans would a person in my position who can put 30-50% down be at a big advantage? I'm assuming the buyers market will go from lets say 5000 people looking to buy to now 2000. 2) Will home prices come down and by how much? After all you have less buyers looking so sellers have no choice but to start coming down in asking price. 3) Would a $1k property tax increase after the Nov elections be another major concern which would help my position? Illinois budget issue isn't going to be solved until atleast Nov elections and there's really no way of avoiding tax increase to pay pension issues. I read an article that mentioned housing is already starting to see a small negative impact due to current lack of state budget.
My basic info is mid 30s, no kids, never married. No debt outside of mortgage. Living in Chicago. I did some math and even after I pay new purchase mortgage, property management company, etc I should make about $500 a month. After the mortgage has been paid it goes to $750-1k a month. This is of course assuming a few things such as not being layed off and not having any kids in the next 2-3 years.
Is there something I'm not taking into consideration??