I am just starting out and currently doing a lot of research. I was mainly looking into some multifamily properties in the Aurora Illinois area and the numbers seem to work rather well. Are there any local investors out there that could possible give me advice on this market or a warning on what to watch out for and/or places to avoid? Thank you for reading and again, this I am still in the preliminary research stages looking at the different markets around Chicago.
Hey Alex!! I am a Real Estate Broker and Investor and my (Illinois) target area is centered right around Aurora. Aurora is a great place to invest, with that being said, there are certain areas that present different challenges, which really depends on your strategy, and the risk profile that you are willing to accept.
Assuming that there generally A type areas, B type areas, and C type areas, with A being the best neighborhoods and C being on the opposite end; any of those areas are potential investments that will make money. All of those areas exist to different degrees in Aurora as well. There are some Fantastic Areas right around Aurora that make great investment locations also, including the Fox Valley Region, North Aurora, Batavia, Geneva, St. Charles, Sugar Grove, Oswego, Montgomery, Yorkville, Plano, Sandwich and Naperville of course.
Most of those cities outside of Aurora are generally A type and B type areas. Great places to raise a family and hence they are great places to invest.
Those are generally my favorite areas these days, mainly due to the proximity of where I live and also my belief in the long term future of the area.
As a first time investor you may want to play it safe and focus on the better areas, but understand those areas are going to cost more per unit. I would recommend having a solid grasp of the pros and cons of each, also drive some neighborhoods and get a feel for the area.
Also, management plays an issue in your question. You may be a bit less hesitant to invest in C areas if you know someone else is going to be doing the 'day to day' management of the property.
Lately I have been 'shopping' for my real estate by school district. Schools, in my opinion, drive demand and shape demographics, which will always keep a steady supply of renters / buyers available for my product, even 25 years down the road.
That is good to know! Thanks for the input! The numbers did make it seem too good to be true.
I tend to agree with James..
I am an Investor+Agent and I have been investing in Western suburbs for more than few years. We just completed two projects in Aurora with around $1400/- net cash flow per month.....so yes, there are some good opportunities out there. I would recommend to focus on East side Aurora i.e. towards Naperville (near rout 59 and around Fox Valley). Most of these areas fall under Naperville school dist which makes this neighborhood more attractive for renters and new buyers.
feel free to pm me with any question or need any help.
Good luck and happy investing...
If you haven't already, check out some of the local REIA meetings. A few evenings of meeting locals can save you a lot of money in the long run. Or give you a leg up on a partnership to split up the risk load. I'm also a short sale agent, but I'm new to investing. I coordinate a group out in the Fox Valley area, if you'd like to check it out, just send me a note.
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I am also new to investing but i find it confusing why to invest in A+ areas and get low return on rentals, and you still can make higher returns on your money by investing west side !
In A+ areas rents will not be that much higher to cover the higher property tax and higher price.
am i missing any ?