Chicago "up and coming" neighborhoods?

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Chicago "up and coming" neighborhoods?

Trung Hong
Chicago, IL · Member since 2015 · 6 posts · 1 vote
Hi BP, I'm new to the REI scene in the Chicago area and was hoping the BP community could share some neighborhoods that are up and coming (the next "wicker park")? Bronzeville? Rogers park ? Woodlawn? Just a few i came across on these forums! I'm currently looking at investing in a 3-4 Multifamily unit and house hack for my first investment (exploring FHA financing option). Any info is helpful! Thanks,
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Crystal SmithPro Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
9y
Originally posted by @Yaseen Ali:

 I'd love to hear your take on which areas in Little Village. I've seen it being block by block there. Are there intersections you like best? Closer to north or south lawndale?

 I'm going to give you 2 answers.  One as an investor.  The other as someone who owned a loft in the South Loop & fell in love w/ Pilsen.

  • The dispassionate investor answer- I can't tell you what intersections I like best.  We just completed our monthly look @ Zip codes to invest in around Chicagoland for small multi- families (2 to 4 units) based on past few months sales & days on market.  Zip code 60608 covers Pilsen. The average price was $273K w/ 42 sales & Days on Market of 70 days. That was 13th best on our list.  For us the stats are positive so we look for opportunities there & it's more than a block by block evaluation.  It's an opportunity by opportunity evaluation.  We haven't completed our Single family home evaluation but I imagine the results won't be much different.
  • On a personal note:  We would regularly hangout between 18th & Cermak  from Halstead to Western
312-681-7487
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  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    10y

    I can't speak to Chicago (you may want to reach out to @Jon Rusnak who is also in Chicago and has a similar strategy as yours last time I connect with him), but I can say that you're smart to be thinking about getting into a multi-family property using FHA financing with little money down. In my opinion, that is the best option for a young person looking to get started investing in real estate.

    One thing to keep in mind when looking for an FHA owner-occupied triplex or fourplex is that 85% of the market rents on all the units need to cover your monthly payment (principal, interest, taxes, insurance, and mortgage insurance). This is known as the self-sufficiency rule. It only applies to 3- and 4-unit properties (not SFRs or duplex) bought using FHA financing. I put together a spreadsheet to help potential house hackers quickly analyze whether or not a property qualifies. There are other FHA requirements concerning which you should contact your local lender, but determining whether or not a triplex or fourplex meets the self-sufficiency rule is a good place to start as this rule will immediately eliminate many properties from your search, especially in expensive markets like ours.

    I wish you the best and happy New Year, Trung!

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    0Reply
  • Account Closed
    Investor · Chicago, IL · Member since 2014 · 169 posts · 29 votes
    10y

    @Trung Hong

    As a recent first time buyer I would suggest you figure out what you want to do with the building first. Buy and hold, owner occupy, flip, turnkey? That may help you decide what part of Chicago you want to invest in. From one of your previous posts it looks like you moved here a year ago. If thats the case spend some time getting familiar with the different neighborhoods in Chicago. Some places might be better for investing and not owner occupy and vice versa. And by better for I mean you might not want to live there. 

    Good luck!!

    1Reply
  • Mike B.Pro Member
    Developer · Chicago, IL · Member since 2013 · 438 posts · 359 votes
    10y

    Jefferson Park. It's still affordable, close to the expressway and has a L/bus station to make the downtown commute easier. I don't think it will necessarily hit Wicker Park status, but should offer decent returns and appreciation. 

    Avondale has a better chance of seeing Wicker Park values but it will be a higher price point to get into as Avondale isn't exactly a secret in Chicago.

    1Reply
  • Nick Doria
    Real Estate Agent/Investor · Chicago, IL · Member since 2015 · 229 posts · 108 votes
    10y
    Trung Hong I'm working on finding my first Muti family to house hack as well in Chicago.
    0Reply
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Trung Hong:

    I'm new to the REI scene in the Chicago area and was hoping the BP community could share some neighborhoods that are up and coming (the next "wicker park")? Bronzeville? Rogers park ? Woodlawn?

     Add Pilsen, Little Village & Avondale to your list.

    312-681-7487
    0Reply
  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    10y

    @Trung Hong if you're looking to live-in the property, start by picking an area that you like personally first and foremost. If you would want to live there, there's a good chance like-minded people will want to live there too (of course, this assumes you'd want neighbors/tenants that have similar lifestyles to yourself).  

    Since you mentioned Wicker Park, I'll use that as an initial gauge, but some similar neighborhoods are Avondale and Pilsen. If you want an area with more of a community feel look at Portage Park, Jefferson Park, and North Park. A few other popular areas on the Southside are Bridgeport, Woodlawn and Bronzeville. 

    0Reply
  • Justin Ericsson
    Professional · Glenview, IL · Member since 2015 · 114 posts · 65 votes
    10y

    Trung... I invest heavily in these areas let's connect so I can give you all my Intel!

    1Reply
  • Nick Doria
    Real Estate Agent/Investor · Chicago, IL · Member since 2015 · 229 posts · 108 votes
    10y

    @Justin Ericsson

    im as well looking to invest the same areas as trung and would like to be able to connect with you as well. This website is such a great tools for networking and learning from each other.  

    0Reply
  • Lumi Ispas
    Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes
    10y

    @Trung Hong, Look at the neighborhoods just outside the hot ones. Next neighborhood close to the hot one, the one next to highways, train stations, shopping, Downtown, etc...Avondale is great, Humboldt Park, Jefferson Park, United Center, East Garfield Park, Pilsen, Bridgeport, etc...

    You price point will define where you are looking though.

    Good luck to you!

    0Reply
  • Yaseen Ali
    Toronto ON, Canada · Member since 2015 · 33 posts · 7 votes
    9y
    Originally posted by @Crystal Smith:

     I'd love to hear your take on which areas in Little Village. I've seen it being block by block there. Are there intersections you like best? Closer to north or south lawndale?

    0Reply
  • Lucas Hammer
    Chicago, IL · Member since 2016 · 238 posts · 68 votes
    9y

    So I house-hack by Cermak and California. I personally love the area. I'm a few minutes from the pink line. I'm two stops from Damen if I want to check out Pilsen and a quick uber ride from 26th if I feel like Mexican food. 

    I'm a block from Pete's fresh market and Walmart which is a huge plus too. Oh, and to top it all off, it's actually still affordable over here.

    0Reply
  • Lucas Hammer
    Chicago, IL · Member since 2016 · 238 posts · 68 votes
    9y

    Oh, and to answer your question, I'm personally not comfortable with North Lawndale. Nothing against the neighborhood, but it does get pretty rough as soon as you go north of Ogden. 

    0Reply
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Yaseen Ali:

     I'd love to hear your take on which areas in Little Village. I've seen it being block by block there. Are there intersections you like best? Closer to north or south lawndale?

     I'm going to give you 2 answers.  One as an investor.  The other as someone who owned a loft in the South Loop & fell in love w/ Pilsen.

    • The dispassionate investor answer- I can't tell you what intersections I like best.  We just completed our monthly look @ Zip codes to invest in around Chicagoland for small multi- families (2 to 4 units) based on past few months sales & days on market.  Zip code 60608 covers Pilsen. The average price was $273K w/ 42 sales & Days on Market of 70 days. That was 13th best on our list.  For us the stats are positive so we look for opportunities there & it's more than a block by block evaluation.  It's an opportunity by opportunity evaluation.  We haven't completed our Single family home evaluation but I imagine the results won't be much different.
    • On a personal note:  We would regularly hangout between 18th & Cermak  from Halstead to Western
    312-681-7487
    2Reply
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