Chicago multi unit - too good to be true?

[Wen Guo]

Hi everyone, I'm from California and fairly new to the Chicago market. But I saw some incredible deals there (comparing to the Bay Area), for example, a 4 plex getting $2400+/month would ask for only 55k. I do know it's 100yr+ building and is selling "as is". But you get your money back in a few years even if it's all cash.. is it too good to be true or is there something I should know about? The case link https://www.redfin.com/IL/Chicago/6732-S-Lowe-Ave-60621/home/13930684 there are tons of other deals like this too.

[Colin Lubinski]

HI Wen, 

I am a broker here in Chicago, and work exclusively with investors, specifically focused on smaller multi unit and mixed use properties. For you not being from the area, it is very important to consider that Chicago is a large city and has many different types of areas. Although something may look like an awesome deal, you need to consider your costs besides initial investment and rehab...namely the costs of recurring vacancies, vandalism, theft etc...that come with owning a rental property in a repressed or high crime area. If you are interested in breaking into the Chicago market, now is the time as the rental market is on an unprecedented upward trend, but I strongly suggest not doing it alone and working with someone who is highly educated about all the different parts of this market and how it affects your bottom line long term. Would you care to discuss this with me and let me help you with your approach and guide you through which areas are going to be of value and which ones are risky?