Hey there! Let's dive into the numbers for this Elgin townhome. Keeping your pocket in mind, here is the breakdown of the carrying costs and what you can expect for a return.
Financial Overview
| Item | Monthly Estimated | Annual |
| :--- | :--- | :--- |
| Property Taxes | $269 | $3,229 |
| HOA Dues | $379 | $4,548 |
| Est. Insurance | $100 | $1,200 |
| Total Fixed Costs | $748 | $8,977 |
Regarding the HOA, the $379 fee covers lawn care and snow removal. Typically in these fee-simple setups, the association insurance only covers common areas. You’ll likely need a separate policy to cover the structure and interior.
That 210 sqft loft is a massive asset. While it's currently a 2-bedroom, adding a wall and closet to that loft could easily pull in higher rent. Based on our analysis, the current 2-bed rent potential is between $2,300 and $2,500.
If you convert it to a true 3-bedroom, you could see a significant jump in demand. Even at a $2,400 median rent, you're looking at roughly $1,650 in monthly cash flow before your mortgage payment. It's a solid buy-and-hold play if the inspection clears!